SM Energy (NYSE:SM) Shares Gap Up Following Earnings Beat

Key Points

• SM Energy shares gapped up to $28.99 after reporting $1.50 EPS, exceeding analysts' expectations of $1.23, with revenue also slightly above forecasts at $792.94 million.
• The company announced a quarterly dividend of $0.20, resulting in a 2.9% dividend yield, with a dividend payout ratio of 11.20%.
• Recent analysts' reports have led to mixed price target adjustments, with Mizuho lowering their price from $46 to $42 while TD Cowen raised their recommendation to a "strong-buy."

SM Energy Company (NYSE:SM - Get Free Report) shares gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $27.59, but opened at $28.99. SM Energy shares last traded at $27.09, with a volume of 294,486 shares trading hands.

The energy company reported $1.50 EPS for the quarter, beating analysts' consensus estimates of $1.23 by $0.27. The business had revenue of $792.94 million for the quarter, compared to analysts' expectations of $792.58 million. SM Energy had a net margin of 25.94% and a return on equity of 18.06%. The business's quarterly revenue was up 25.0% on a year-over-year basis. During the same period last year, the business earned $1.85 earnings per share.

SM Energy Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 4th. Shareholders of record on Friday, July 18th were issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend was Friday, July 18th. SM Energy's dividend payout ratio (DPR) is 11.30%.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on SM. Susquehanna raised their price target on SM Energy from $24.00 to $27.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 23rd. Raymond James Financial cut shares of SM Energy from an "outperform" rating to an "underperform" rating in a research note on Tuesday, June 24th. KeyCorp reduced their price objective on SM Energy from $60.00 to $36.00 and set an "overweight" rating for the company in a research note on Monday, April 21st. Stephens decreased their target price on shares of SM Energy from $62.00 to $55.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 15th. Finally, Wells Fargo & Company cut their target price on shares of SM Energy from $33.00 to $29.00 and set an "equal weight" rating on the stock in a research note on Monday, June 16th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating, four have assigned a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat, SM Energy currently has a consensus rating of "Moderate Buy" and an average price target of $42.50.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Moody Aldrich Partners LLC grew its position in shares of SM Energy by 31.1% in the second quarter. Moody Aldrich Partners LLC now owns 177,045 shares of the energy company's stock valued at $4,375,000 after purchasing an additional 41,987 shares during the last quarter. Atria Investments Inc raised its position in shares of SM Energy by 5.1% in the 2nd quarter. Atria Investments Inc now owns 15,472 shares of the energy company's stock worth $382,000 after acquiring an additional 754 shares in the last quarter. Peregrine Capital Management LLC increased its position in SM Energy by 0.4% in the 2nd quarter. Peregrine Capital Management LLC now owns 163,517 shares of the energy company's stock valued at $4,041,000 after buying an additional 668 shares in the last quarter. Teacher Retirement System of Texas boosted its stake in shares of SM Energy by 2.5% in the 2nd quarter. Teacher Retirement System of Texas now owns 59,850 shares of the energy company's stock worth $1,479,000 after buying an additional 1,435 shares during the last quarter. Finally, Y Intercept Hong Kong Ltd lifted its stake in SM Energy by 285.8% in the second quarter. Y Intercept Hong Kong Ltd now owns 78,686 shares of the energy company's stock valued at $1,944,000 after purchasing an additional 58,293 shares during the last quarter. 94.56% of the stock is currently owned by institutional investors.

SM Energy Trading Up 1.4%

The firm has a market cap of $3.14 billion, a PE ratio of 3.87 and a beta of 2.29. The firm has a 50 day moving average of $26.30 and a 200 day moving average of $28.38. The company has a quick ratio of 0.57, a current ratio of 0.69 and a debt-to-equity ratio of 0.59.

About SM Energy

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids in the state of Texas. It has working interests in oil and gas producing wells in the Midland Basin and South Texas. The company was formerly known as St.