SM Energy (NYSE:SM) Reaches New 12-Month High - Still a Buy?

Key Points

• SM Energy shares reached a new 52-week high of $36.08, with the stock recently trading around $35.78. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $37.93, though targets range widely from $41 to $52.
• The company reported strong quarterly results, earning $2.19 per share versus the $1.96 consensus estimate and generating $2.50 billion in revenue, up 215.3% year over year.
• SM Energy pays a quarterly dividend of $0.22 per share, equivalent to an annualized $0.88 and a 2.5% yield. Institutional investors own 94.56% of the company, while an insider recently sold shares.

SM Energy Company (NYSE:SM - Get Free Report)'s share price hit a new 52-week high during trading on Tuesday . The company traded as high as $36.08 and last traded at $35.7760, with a volume of 7787 shares traded. The stock had previously closed at $35.48.

Analysts Set New Price Targets

Several research firms have weighed in on SM. Truist Financial boosted their price objective on SM Energy from $37.00 to $43.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. Stephens decreased their target price 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. Siebert Williams Shank upgraded SM Energy from a "hold" rating to a "buy" rating and lifted their target price for the stock from $30.00 to $41.00 in a research note on Thursday, May 14th. Raymond James Financial cut their price target on shares of SM Energy from $55.00 to $48.00 and set an "outperform" rating on the stock in a report on Tuesday, July 21st. Finally, Wall Street Zen upgraded shares of SM Energy from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, SM Energy has a consensus rating of "Moderate Buy" and an average price target of $37.93.

SM Energy Trading Up 0.6%

The firm has a fifty day moving average of $29.78 and a two-hundred day moving average of $28.38. The company has a market cap of $8.49 billion, a PE ratio of 7.00 and a beta of 0.73. The company has a current ratio of 0.62, a quick ratio of 0.62 and a debt-to-equity ratio of 0.85.

SM Energy (NYSE:SM - Get Free Report) last posted its 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. SM Energy had a return on equity of 17.93% and a net margin of 18.20%.The firm had revenue of $2.50 billion for the quarter, compared to the consensus estimate of $2.02 billion. During the same quarter in the prior year, the business posted $1.50 earnings per share. The business's quarterly revenue was up 215.3% on a year-over-year basis. As a group, sell-side analysts predict that SM Energy Company will post 7.1 EPS for the current year.

SM Energy Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 22nd. Shareholders of record on Monday, June 8th were paid a dividend of $0.22 per share. The ex-dividend date of this dividend was Monday, June 8th. This represents a $0.88 annualized dividend and a yield of 2.5%. SM Energy's payout ratio is 17.32%.

Insiders Place Their Bets

In related news, Director Ramiro G. Peru sold 24,553 shares of the business's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $33.98, for a total value of $834,310.94. Following the completion of the sale, the director owned 65,964 shares in the company, valued at $2,241,456.72. The trade was a 27.13% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.45% of the stock is owned by insiders.

Hedge Funds Weigh In On SM Energy

A number of large investors have recently added to or reduced their stakes in the business. GAMMA Investing LLC boosted its position in SM Energy by 3.8% during the second quarter. GAMMA Investing LLC now owns 10,108 shares of the energy company's stock valued at $264,000 after buying an additional 371 shares during the period. Quad Cities Investment Group LLC lifted its stake in shares of SM Energy by 2.8% in the 2nd quarter. Quad Cities Investment Group LLC now owns 13,777 shares of the energy company's stock valued at $360,000 after acquiring an additional 375 shares during the last quarter. Summit Global Investments lifted its stake in shares of SM Energy by 1.1% in the 4th quarter. Summit Global Investments now owns 46,417 shares of the energy company's stock valued at $868,000 after acquiring an additional 489 shares during the last quarter. State of Wyoming boosted its holdings in SM Energy by 22.2% during the 4th quarter. State of Wyoming now owns 2,748 shares of the energy company's stock valued at $51,000 after acquiring an additional 499 shares during the period. Finally, Global Retirement Partners LLC boosted its holdings in SM Energy by 62.9% during the 4th quarter. Global Retirement Partners LLC now owns 1,386 shares of the energy company's stock valued at $26,000 after acquiring an additional 535 shares during the period. Hedge funds and other 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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