SM Energy Co. (SM) Lifted to “Buy” at Zacks Investment Research
SM Energy Co. (NYSE:SM) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday. The firm presently has a $44.00 target price on the energy company’s stock. Zacks Investment Research’s target price indicates a potential upside of 13.08% from the stock’s previous close.
According to Zacks, “SM Energy boasts of a diverse asset mix and promising organic production growth outlook. SM Energy is also favorably positioned than most of its peers in terms of the strength of its balance sheet. In an attempt to improve the overall quality of the company’s inventory, it acquired acreage in Permian Basin, which has emerged as a core area of Midland Basin and is value accretive to SM Energy’s existing holding in the basin. Additionally, SM Energy’s effort to rationalize its portfolio is noteworthy. Recently, it appointed Petrie Partners to review the sale of certain leasehold assets in Williston Basin. Moreover, its holdings in Eagle Ford, Bakken, Niobrara, Haynesville and Granite Wash provide multiple years of drilling inventory, indicating robust long-term prospects for the firm.”
SM has been the subject of a number of other research reports. Mitsubishi UFJ Financial Group raised shares of SM Energy from an “underweight” rating to a “neutral” rating and set a $36.00 price objective for the company in a report on Tuesday, August 23rd. Seaport Global Securities raised shares of SM Energy from a “neutral” rating to a “buy” rating and boosted their price objective for the company from $30.00 to $53.00 in a report on Tuesday, August 30th. Cantor Fitzgerald reissued a “hold” rating and issued a $24.00 price objective on shares of SM Energy in a report on Wednesday, August 3rd. KLR Group raised shares of SM Energy from an “accumulate” rating to a “buy” rating and boosted their price objective for the company from $37.00 to $43.00 in a report on Tuesday, August 9th. Finally, Barclays PLC boosted their price objective on shares of SM Energy from $32.00 to $40.00 and gave the company an “overweight” rating in a report on Thursday, August 4th. Two equities research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and twelve have assigned a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average target price of $32.89.
SM Energy (NYSE:SM) traded down 1.23% during mid-day trading on Tuesday, hitting $38.43. 1,950,482 shares of the stock traded hands. The company has a 50 day moving average price of $36.31 and a 200-day moving average price of $29.36. SM Energy has a one year low of $6.99 and a one year high of $42.23. The stock’s market capitalization is $2.63 billion.
SM Energy (NYSE:SM) last announced its earnings results on Tuesday, August 2nd. The energy company reported ($0.44) EPS for the quarter, topping the consensus estimate of ($0.71) by $0.27. The business earned $341.80 million during the quarter, compared to the consensus estimate of $328.18 million. SM Energy had a negative net margin of 73.55% and a negative return on equity of 9.92%. SM Energy’s revenue was down 33.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.49 EPS. Equities analysts anticipate that SM Energy will post ($2.38) earnings per share for the current fiscal year.
The business also recently announced a semiannual dividend, which will be paid on Wednesday, November 2nd. Investors of record on Friday, October 21st will be paid a dividend of $0.05 per share. This represents a yield of 0.29%. The ex-dividend date of this dividend is Wednesday, October 19th. SM Energy’s dividend payout ratio is presently -0.80%.
In related news, SVP Kenneth J. Knott sold 661 shares of the stock in a transaction on Thursday, September 29th. The shares were sold at an average price of $40.00, for a total transaction of $26,440.00. Following the transaction, the senior vice president now directly owns 43,417 shares of the company’s stock, valued at $1,736,680. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Corporate insiders own 1.70% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of SM. Macquarie Group Ltd. raised its position in shares of SM Energy by 0.5% in the second quarter. Macquarie Group Ltd. now owns 1,580,149 shares of the energy company’s stock valued at $42,664,000 after buying an additional 7,598 shares in the last quarter. Mason Street Advisors LLC bought a new position in shares of SM Energy during the second quarter valued at about $838,000. Amalgamated Bank bought a new position in shares of SM Energy during the second quarter valued at about $277,000. Legal & General Group Plc raised its position in shares of SM Energy by 47.3% in the second quarter. Legal & General Group Plc now owns 92,181 shares of the energy company’s stock valued at $2,487,000 after buying an additional 29,613 shares in the last quarter. Finally, Metropolitan Life Insurance Co. NY raised its position in shares of SM Energy by 3.6% in the second quarter. Metropolitan Life Insurance Co. NY now owns 63,925 shares of the energy company’s stock valued at $1,726,000 after buying an additional 2,243 shares in the last quarter. 82.89% of the stock is currently owned by institutional investors and hedge funds.
SM Energy Company Profile
SM Energy Company is an independent energy company. The Company is engaged in the acquisition, exploration, development and production of crude oil and condensate, natural gas and natural gas liquids (NGLs) in onshore North America. The Company operates in the exploration and production segment of the oil and gas industry within the United States.
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