SM Energy (NYSE:SM) Stock Price Crosses Below Fifty Day Moving Average on Disappointing Earnings

Key Points

• SM Energy shares fell below their 50-day moving average after weaker-than-expected earnings, touching $36.50 and last trading at about $36.71, versus a $37.15 average.
• Quarterly EPS was $1.95, below the $2.01 consensus, while revenue rose 167.2% year over year to $2.16 billion, beating expectations of $2.04 billion.
• The company paid a quarterly dividend of $0.22 per share, equivalent to $0.88 annually and a 2.4% yield.

SM Energy Company (NYSE:SM - Get Free Report)'s stock price crossed below its fifty day moving average during trading on Tuesday following a weaker than expected earnings announcement. The stock has a fifty day moving average of $37.15 and traded as low as $36.50. SM Energy shares last traded at $36.7070, with a volume of 2,989,855 shares traded.

The energy company reported $1.95 EPS for the quarter, missing the consensus estimate of $2.01 by ($0.06). The company had revenue of $2.16 billion during the quarter, compared to analysts' expectations of $2.04 billion. SM Energy had a return on equity of 17.93% and a net margin of 18.20%. SM Energy's revenue was up 167.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.33 EPS.

SM Energy Announces Dividend

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

Key Headlines Impacting SM Energy

Here are the key news stories impacting SM Energy this week:

• Positive Sentiment: Q3 revenue rose 167.2% year over year to $2.16 billion, topping the roughly $2.04 billion analyst estimate. EPS also increased from $1.33 a year earlier. Article: SM Energy surprises with Q3 2026 sales
• Positive Sentiment: The company generated $1.1 billion in operating cash flow, used $417 million to redeem debt and returned $133 million to stockholders—supportive of balance-sheet and shareholder-return priorities. Article: SM Energy Reports Third Quarter 2026 Results
• Negative Sentiment: Q3 EPS of $1.95 missed estimates of about $2.01–$2.03, ending a six-quarter streak of earnings beats. The miss is the clearest near-term negative despite the revenue strength. Article: SM Energy Q3 Earnings Lag Estimates

Analysts Set New Price Targets

Several research analysts recently weighed in on SM shares. Wells Fargo & Company upgraded SM Energy from an "equal weight" rating to an "overweight" rating and increased their price objective for the stock from $32.00 to $47.00 in a research report on Thursday, August 13th. Stephens decreased their price target on SM Energy from $61.00 to $52.00 and set an "overweight" rating on the stock in a research note on Tuesday, July 7th. Raymond James Financial reissued an "outperform" rating and set a $50.00 price objective on shares of SM Energy in a research report on Wednesday, October 21st. Mizuho set a $39.00 price objective on shares of SM Energy in a report on Wednesday, October 7th. Finally, Stifel Nicolaus initiated coverage on shares of SM Energy in a research report on Wednesday, September 9th. They issued a "hold" rating and a $42.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, SM Energy presently has a consensus rating of "Moderate Buy" and an average price target of $40.59.

Insider Buying and Selling at SM Energy

In related news, Director Ashwin Venkatraman sold 3,650 shares of the business's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $38.28, for a total value of $139,722.00. Following the sale, the director owned 12,525 shares in the company, valued at approximately $479,457. The trade was a 22.57% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP James Barker Lebeck sold 17,500 shares of the stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $37.02, for a total value of $647,850.00. Following the transaction, the executive vice president directly owned 14,705 shares in the company, valued at approximately $544,379.10. The trade was a 54.34% 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.

Hedge Funds Weigh In On SM Energy

Institutional investors have recently bought and sold shares of the company. Torren Management LLC boosted its holdings in 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 in the last quarter. Heritage Family Offices LLP purchased a new position in SM Energy in the third quarter valued at approximately $30,000. CoreCap Advisors LLC increased its stake in SM Energy by 211.2% in the third quarter. CoreCap Advisors LLC now owns 974 shares of the energy company's stock valued at $33,000 after purchasing an additional 661 shares during the last quarter. Center for Financial Planning Inc. acquired a new stake in SM Energy during the first quarter worth approximately $31,000. Finally, Valued Wealth Advisors LLC acquired a new stake in SM Energy during the first quarter worth approximately $33,000. 94.56% of the stock is owned by institutional investors and hedge funds.

SM Energy Stock Performance

The firm's fifty day moving average price is $37.15 and its 200-day moving average price is $30.40. The company has a current ratio of 0.62, a quick ratio of 0.62 and a debt-to-equity ratio of 0.85. The firm has a market cap of $8.73 billion, a price-to-earnings ratio of 7.23 and a beta of 0.80.

About SM Energy

SM Energy Company is an independent energy company engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. Its activities include acquiring prospective acreage, drilling and completing wells, and managing producing properties in U.S. onshore oil and gas basins.

The company's operations are primarily concentrated in Texas, including the Midland Basin in West Texas and the Eagle Ford shale region in South Texas. SM Energy focuses on development of unconventional resources and uses horizontal drilling and hydraulic fracturing technologies to produce hydrocarbons from shale and other tight-rock formations.

Founded in 1908 as St.

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