SM Energy (NYSE:SM) Reaches New 1-Year High - Here's Why

Key Points

• SM Energy shares reached a new 52-week high, trading around $39.14 and above the previous close of $38.10. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $38.19, although targets range from $32 to $52.
• The company reported strong quarterly results, including EPS of $2.19 versus the $1.96 estimate and revenue of $2.50 billion, up 215.3% year over year and well above expectations.
• SM Energy declared a quarterly dividend of $0.22 per share, equivalent to an annualized $0.88 payout and a 2.2% yield. Institutional investors own 94.56% of the company, while two insiders recently sold shares.

SM Energy Company (NYSE:SM - Get Free Report)'s stock price reached a new 52-week high on Monday . The stock traded as high as $39.00 and last traded at $39.1410, with a volume of 24558 shares trading hands. The stock had previously closed at $38.10.

Analysts Set New Price Targets

Several equities analysts recently issued reports on SM shares. Stifel Nicolaus began coverage on shares of SM Energy in a research note on Wednesday. They set a "hold" rating and a $42.00 price objective on the stock. Seaport Research Partners assumed coverage on shares of SM Energy in a research report on Thursday, September 3rd. They set a "sell" rating and a $35.00 price target on the stock. Truist Financial upped their price target on SM Energy from $37.00 to $43.00 and gave the stock a "buy" rating in a report on Monday, August 10th. Susquehanna upped their price target on SM Energy from $31.00 to $32.00 and gave the company a "neutral" rating in a research report on Tuesday, July 21st. Finally, Stephens reduced their price objective on SM Energy from $61.00 to $52.00 and set an "overweight" rating for the company in a research report on Tuesday, July 7th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, SM Energy has an average rating of "Moderate Buy" and a consensus target price of $38.19.

SM Energy Price Performance

The company has a quick ratio of 0.62, a current ratio of 0.62 and a debt-to-equity ratio of 0.85. The stock has a market capitalization of $9.31 billion, a PE ratio of 7.68 and a beta of 0.75. The stock's 50-day moving average is $33.23 and its 200 day moving average is $30.52.

SM Energy (NYSE:SM - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The energy company reported $2.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.96 by $0.23. SM Energy had a return on equity of 17.93% and a net margin of 18.20%.The business had revenue of $2.50 billion during the quarter, compared to analyst estimates of $2.02 billion. During the same period last year, the company earned $1.50 earnings per share. SM Energy's quarterly revenue was up 215.3% compared to the same quarter last year. As a group, equities analysts predict that SM Energy Company will post 7.48 earnings per share for the current year.

SM Energy Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 21st. Stockholders of record on Monday, September 7th will be paid a $0.22 dividend. The ex-dividend date is Friday, September 4th. This represents a $0.88 annualized dividend and a dividend yield of 2.2%. SM Energy's dividend payout ratio (DPR) is presently 17.32%.

Insider Buying and Selling at SM Energy

In other news, EVP James Barker Lebeck sold 17,500 shares of the business's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $37.02, for a total transaction of $647,850.00. Following the transaction, the executive vice president owned 14,705 shares in the company, valued at approximately $544,379.10. The trade was a 54.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Ashwin Venkatraman sold 3,650 shares of the company's stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $38.28, for a total value of $139,722.00. Following the completion of the transaction, the director directly owned 12,525 shares of the company's stock, valued at approximately $479,457. This trade represents a 22.57% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.45% of the company's stock.

Institutional Investors Weigh In On SM Energy

Hedge funds have recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in SM Energy during the 2nd quarter valued at $1,025,229,000. Canada Pension Plan Investment Board acquired a new position in shares of SM Energy during the 2nd quarter worth about $378,288,000. Donald Smith & CO. Inc. bought a new stake in SM Energy in the second quarter valued at approximately $199,602,000. California State Teachers Retirement System raised its stake in SM Energy by 2,798.5% during the 2nd quarter. California State Teachers Retirement System now owns 7,257,236 shares of the energy company's stock worth $189,414,000 after buying an additional 7,006,855 shares during the period. Finally, Dimensional Fund Advisors LP raised its position in shares of SM Energy by 79.5% during the first quarter. Dimensional Fund Advisors LP now owns 9,995,353 shares of the energy company's stock worth $311,678,000 after purchasing an additional 4,426,751 shares during the period. Institutional investors and hedge funds own 94.56% of the company's stock.

SM Energy Company Profile

SM Energy Company NYSE: SM is an independent energy company engaged in the exploration, development and production of oil, natural gas and natural gas liquids. Its operations focus on acquiring and developing oil and gas properties and producing hydrocarbons from onshore assets in the United States.

The company's principal operations are concentrated in the Permian Basin of West Texas and the South Texas region. SM Energy has also expanded its U.S. operating portfolio through acquisitions, including assets in Utah's Uinta Basin.

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