SM Energy (NYSE:SM) Shares Gap Down - Here's What Happened

Key Points

• SM Energy shares gapped down 5.7%, opening at $35.91 versus the prior close of $36.97, and last traded near $35.24.
• Analyst sentiment remains positive overall, with a consensus rating of “Moderate Buy” and an average price target of $39.38, despite ratings ranging from Strong Buy to Sell.
• The company reported quarterly EPS of $2.19, beating estimates of $1.96, while revenue rose 215.3% year over year to $2.50 billion. SM Energy also declared a $0.22 quarterly dividend, equivalent to a 2.5% yield.

SM Energy Company (NYSE:SM - Get Free Report) shares gapped down prior to trading on Monday . The stock had previously closed at $36.97, but opened at $35.91. SM Energy shares last traded at $35.2380, with a volume of 665,033 shares trading hands.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on SM. Mizuho raised shares of SM Energy to a "strong-buy" rating in a report on Friday, July 31st. Seaport Research Partners initiated coverage on SM Energy in a report on Thursday, September 3rd. They issued a "sell" rating and a $35.00 price objective for the company. Weiss Ratings reaffirmed a "hold (c)" rating on shares of SM Energy in a report on Monday, August 17th. UBS Group lifted their price target on SM Energy from $36.00 to $48.00 and gave the company a "buy" rating in a research report on Monday, September 14th. Finally, Roth Capital upgraded SM Energy from a "neutral" rating to a "buy" rating and upped their price objective for the stock from $30.00 to $32.00 in a research report on Monday, June 22nd. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $39.38.

SM Energy Trading Down 5.7%

The stock has a market cap of $8.29 billion, a PE ratio of 6.87 and a beta of 0.75. The company has a debt-to-equity ratio of 0.85, a quick ratio of 0.62 and a current ratio of 0.62. The company has a 50 day moving average of $34.28 and a two-hundred day moving average of $31.08.

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

SM Energy Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 21st. Shareholders of record on Monday, September 7th will be paid a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a yield of 2.5%. The ex-dividend date is Friday, September 4th. SM Energy's payout ratio is 17.32%.

Insider Buying and Selling

In other SM Energy news, Director Ashwin Venkatraman sold 3,650 shares of SM Energy stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $38.28, for a total transaction of $139,722.00. Following the sale, the director owned 12,525 shares of the company's stock, valued at $479,457. The trade was a 22.57% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP James Barker Lebeck sold 17,500 shares of the 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 completion of the sale, the executive vice president owned 14,705 shares of the company's stock, valued at $544,379.10. This trade represents a 54.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.45% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of SM. Torren Management LLC increased its holdings in shares of SM Energy by 4,561.1% in the first quarter. Torren Management LLC now owns 839 shares of the energy company's stock valued at $26,000 after purchasing an additional 821 shares during the last quarter. Kilter Group LLC acquired a new position in SM Energy during the second quarter worth $28,000. Center for Financial Planning Inc. purchased a new stake in SM Energy in the 1st quarter valued at $31,000. Valued Wealth Advisors LLC acquired a new stake in shares of SM Energy in the 1st quarter worth $33,000. Finally, Assetmark Inc. acquired a new stake in shares of SM Energy in the 1st quarter worth $35,000. 94.56% of the stock is owned by hedge funds and other institutional investors.

About SM Energy

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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