SM Energy (NYSE:SM) Trading 5.1% Higher on Analyst Upgrade

Key Points

• SM Energy shares rose 5.1% after KeyCorp raised its price target from $39 to $46 while maintaining an overweight rating. The stock reached $40.87 during trading.
• Analyst sentiment remains favorable, with a consensus rating of “Moderate Buy” and an average price target of $39.38; UBS and Truist also recently increased their targets.
• SM Energy reported quarterly EPS of $2.19, exceeding estimates of $1.96, while revenue surged 215.3% year over year to $2.50 billion. The company also declared a quarterly dividend of $0.22 per share.

SM Energy Company (NYSE:SM - Get Free Report) rose 5.1% during mid-day trading on Tuesday after KeyCorp raised their price target on the stock from $39.00 to $46.00. KeyCorp currently has an overweight rating on the stock. SM Energy traded as high as $40.87 and last traded at $41.0370. 1,295,349 shares were traded during mid-day trading, a decline of 75% from the average daily volume of 5,089,939 shares. The stock had previously closed at $39.03.

A number of other research firms have also issued reports on SM. Stephens lowered their target price on SM Energy from $61.00 to $52.00 and set an "overweight" rating for the company in a research note on Tuesday, July 7th. UBS Group boosted their price target on SM Energy from $36.00 to $48.00 and gave the stock a "buy" rating in a research report on Monday. 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 increased their price objective on shares of SM Energy from $31.00 to $32.00 and gave the company a "neutral" rating in a research report on Tuesday, July 21st. Finally, Mizuho upgraded shares of SM Energy to a "strong-buy" rating in a research note on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $39.38.

Insider Activity

In other news, EVP James Barker Lebeck sold 17,500 shares of SM Energy stock in a transaction dated 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 directly owned 14,705 shares of the company's stock, valued at approximately $544,379.10. The trade was a 54.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Ashwin Venkatraman sold 3,650 shares of SM Energy stock in a transaction dated 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 directly owned 12,525 shares in the company, valued at approximately $479,457. The trade was a 22.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.45% of the stock is owned by company insiders.

Hedge Funds Weigh In On SM Energy

A number of institutional investors have recently made changes to their positions in the business. Sequoia Financial Advisors LLC grew its holdings in SM Energy by 135.8% during the second quarter. Sequoia Financial Advisors LLC now owns 57,623 shares of the energy company's stock worth $1,504,000 after acquiring an additional 33,181 shares during the period. Tidal Investments LLC boosted its position in shares of SM Energy by 19.7% during the 2nd quarter. Tidal Investments LLC now owns 18,189 shares of the energy company's stock valued at $475,000 after purchasing an additional 2,989 shares in the last quarter. Engineers Gate Manager LP bought a new position in shares of SM Energy during the 2nd quarter valued at about $1,489,000. Integrated Wealth Concepts LLC bought a new stake in shares of SM Energy in the 2nd quarter worth approximately $70,000. Finally, IFP Advisors Inc raised its holdings in shares of SM Energy by 1.8% in the 2nd quarter. IFP Advisors Inc now owns 18,006 shares of the energy company's stock worth $470,000 after purchasing an additional 315 shares in the last quarter. 94.56% of the stock is owned by institutional investors and hedge funds.

SM Energy Trading Up 5.1%

The firm has a market capitalization of $9.76 billion, a price-to-earnings ratio of 8.09 and a beta of 0.75. The firm's 50 day moving average is $33.48 and its 200 day moving average is $30.63. The company has a quick ratio of 0.62, a current ratio of 0.62 and a debt-to-equity ratio of 0.85.

SM Energy (NYSE:SM - Get Free Report) last posted its quarterly earnings results 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. The firm had revenue of $2.50 billion for the quarter, compared to analyst estimates of $2.02 billion. SM Energy had a net margin of 18.20% and a return on equity of 17.93%. The firm's quarterly revenue was up 215.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.50 earnings per share. Equities analysts forecast that SM Energy Company will post 7.48 earnings per share for the current year.

SM Energy Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, September 21st. Investors of record on Monday, September 7th will be issued a $0.22 dividend. This represents a $0.88 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Friday, September 4th. SM Energy's payout ratio is presently 17.32%.

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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