SM Energy (NYSE:SM) Trading Up 7.2% - Here's Why

Key Points

• SM Energy's stock price increased by 7.2%, reaching $27.72, despite a significant drop in trading volume.
• Various analysts have revised their ratings and price targets for SM Energy, with Wells Fargo lowering its target from $33 to $29, while TD Cowen upgraded it to a "strong-buy."
• The company reported a quarterly earnings per share of $1.50, exceeding analysts' expectations, alongside a 25% increase in revenue year-over-year.

SM Energy Company (NYSE:SM - Get Free Report)'s stock price rose 7.2% on Tuesday . The stock traded as high as $27.71 and last traded at $27.72. Approximately 565,218 shares traded hands during trading, a decline of 75% from the average daily volume of 2,217,359 shares. The stock had previously closed at $25.85.

Wall Street Analyst Weigh In

SM has been the subject of several recent research reports. Wells Fargo & Company cut their target price on shares of SM Energy from $33.00 to $29.00 and set an "equal weight" rating for the company in a report on Monday, June 16th. Raymond James Financial cut shares of SM Energy from an "outperform" rating to an "underperform" rating in a research report on Tuesday, June 24th. Susquehanna boosted their price target on shares of SM Energy from $24.00 to $27.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 23rd. TD Cowen upgraded shares of SM Energy to a "strong-buy" rating in a report on Monday, July 7th. Finally, Mizuho dropped their price target on shares of SM Energy from $44.00 to $39.00 and set an "outperform" rating on the stock in a research note on Monday, September 15th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, SM Energy currently has a consensus rating of "Hold" and a consensus target price of $42.08.

SM Energy Stock Up 2.5%

The firm has a market cap of $3.05 billion, a price-to-earnings ratio of 3.74 and a beta of 2.47. The firm has a 50 day moving average price of $27.03 and a 200-day moving average price of $26.02. The company has a current ratio of 0.69, a quick ratio of 0.69 and a debt-to-equity ratio of 0.59.

SM Energy (NYSE:SM - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The energy company reported $1.50 EPS for the quarter, topping analysts' consensus estimates of $1.23 by $0.27. The firm had revenue of $792.94 million during the quarter, compared to analysts' expectations of $792.58 million. SM Energy had a return on equity of 18.06% and a net margin of 25.94%.The firm's quarterly revenue was up 25.0% compared to the same quarter last year. During the same quarter last year, the business posted $1.85 EPS. On average, equities analysts forecast that SM Energy Company will post 8.1 EPS for the current year.

SM Energy Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, August 4th. Investors of record on Friday, July 18th were given a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend was Friday, July 18th. SM Energy's dividend payout ratio (DPR) is 11.30%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Crossmark Global Holdings Inc. grew its holdings in shares of SM Energy by 12.7% during the 1st quarter. Crossmark Global Holdings Inc. now owns 8,355 shares of the energy company's stock worth $250,000 after purchasing an additional 941 shares during the period. Janney Montgomery Scott LLC grew its holdings in shares of SM Energy by 2.5% during the 1st quarter. Janney Montgomery Scott LLC now owns 21,258 shares of the energy company's stock worth $637,000 after purchasing an additional 518 shares during the period. Range Financial Group LLC grew its holdings in shares of SM Energy by 16.9% during the 1st quarter. Range Financial Group LLC now owns 25,119 shares of the energy company's stock worth $752,000 after purchasing an additional 3,624 shares during the period. Insight Wealth Strategies LLC grew its holdings in shares of SM Energy by 30.8% during the 2nd quarter. Insight Wealth Strategies LLC now owns 107,381 shares of the energy company's stock worth $2,796,000 after purchasing an additional 25,273 shares during the period. Finally, Jefferies Financial Group Inc. purchased a new stake in shares of SM Energy during the 1st quarter worth about $656,000. 94.56% of the stock is owned by hedge funds and other institutional investors.

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.

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