SM Energy (NYSE:SM) Shares Gap Down on Insider Selling

Key Points

• SM Energy shares declined 1.2%, opening at $35.29 versus a prior close of $36.46, after EVP James Barker Lebeck sold 17,500 shares for approximately $647,850—cutting his position by 54.34%.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $37.93; several firms recently upgraded the stock or raised their targets.
• SM Energy reported strong quarterly results, posting $2.19 in adjusted EPS and $2.50 billion in revenue, while revenue surged 215.3% year over year. The company also announced a quarterly dividend of $0.22 per share, representing a 2.4% annualized yield.

SM Energy Company (NYSE:SM - Get Free Report)'s share price gapped down before the market opened on Tuesday following insider selling activity. The stock had previously closed at $36.46, but opened at $35.29. SM Energy shares last traded at $36.0120, with a volume of 325,122 shares traded.

Specifically, EVP James Barker Lebeck sold 17,500 shares of the company's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $37.02, for a total transaction of $647,850.00. Following the sale, the executive vice president owned 14,705 shares in the company, valued at $544,379.10. This represents a 54.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link.

Analyst Ratings Changes

Several equities analysts recently weighed in on SM shares. Wall Street Zen raised shares of SM Energy from a "buy" rating to a "strong-buy" rating in a research note on Saturday. Susquehanna upped their price target on shares of SM Energy from $31.00 to $32.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 21st. Mizuho upgraded shares of SM Energy to a "strong-buy" rating in a research note on Friday, July 31st. Truist Financial lifted their price objective on shares of SM Energy from $37.00 to $43.00 and gave the company a "buy" rating in a research report on Monday, August 10th. Finally, UBS Group began coverage on shares of SM Energy in a research note on Tuesday, July 14th. They set a "buy" rating and a $36.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, SM Energy currently has a consensus rating of "Moderate Buy" and an average price target of $37.93.

SM Energy Stock Down 1.2%

The firm has a fifty day simple moving average of $30.34 and a 200-day simple moving average of $28.99. The firm has a market cap of $8.57 billion, a price-to-earnings ratio of 7.09 and a beta of 0.73. The company has a debt-to-equity ratio of 0.85, a quick ratio of 0.62 and a current ratio of 0.62.

SM Energy (NYSE:SM - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The energy company reported $2.19 EPS for the quarter, beating the consensus estimate of $1.96 by $0.23. The firm had revenue of $2.50 billion for the quarter, compared to the consensus estimate of $2.02 billion. SM Energy had a net margin of 18.20% and a return on equity of 17.93%. The company's quarterly revenue was up 215.3% on a year-over-year basis. During the same period in the previous year, the company earned $1.50 earnings per share. As a group, sell-side analysts expect that SM Energy Company will post 7.36 EPS for the current year.

SM Energy Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 21st. Stockholders of record on Monday, September 7th will be given a $0.22 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.88 annualized dividend and a dividend yield of 2.4%. SM Energy's dividend payout ratio is presently 17.32%.

Hedge Funds Weigh In On SM Energy

A number of large investors have recently made changes to their positions in the company. Royal Bank of Canada lifted its holdings in SM Energy by 27.7% during the 1st quarter. Royal Bank of Canada now owns 91,916 shares of the energy company's stock worth $2,753,000 after purchasing an additional 19,965 shares during the last quarter. AQR Capital Management LLC grew its holdings in SM Energy by 43.9% in the 1st quarter. AQR Capital Management LLC now owns 145,922 shares of the energy company's stock valued at $4,370,000 after buying an additional 44,542 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in SM Energy by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 68,111 shares of the energy company's stock worth $2,040,000 after buying an additional 2,969 shares during the period. NewEdge Advisors LLC lifted its holdings in shares of SM Energy by 44.9% during the first quarter. NewEdge Advisors LLC now owns 3,248 shares of the energy company's stock worth $97,000 after buying an additional 1,007 shares in the last quarter. Finally, United Services Automobile Association acquired a new stake in shares of SM Energy during the first quarter worth $222,000. Institutional investors own 94.56% of the company's stock.

About SM Energy

SM Energy Company NYSE: SM is an independent energy firm engaged in the exploration, development, and production of crude oil, natural gas, and natural gas liquids in the United States. The company focuses on identifying and exploiting unconventional onshore basins, leveraging advanced drilling and completion techniques to optimize resource recovery. SM Energy's operations are supported by an integrated approach to reservoir management and strategic midstream partnerships, enabling efficient transportation and marketing of hydrocarbons.

The company's core asset areas include prolific basins such as the Permian, Eagle Ford, and the Rocky Mountain region.

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