SM Energy (NYSE:SM) Shares Gap Down – Time to Sell?

Shares of SM Energy Company (NYSE:SM) gapped down before the market opened on Wednesday . The stock had previously closed at $31.18, but opened at $30.18. SM Energy shares last traded at $29.1080, with a volume of 1,220,649 shares.

Key SM Energy News

Here are the key news stories impacting SM Energy this week:

• Positive Sentiment: KeyBanc raised its price target to $39 (from $29) and kept an Overweight rating, saying it is resetting its oil price deck after Q1 and views the recent crude/equity selloff as a buying opportunity — a bullish analyst endorsement that supports further upside in SM. Wall Street Upgrades SM Energy
• Positive Sentiment: SM completed its cash tender offer to repurchase up to $1.0B of 8.375% senior notes (assumed in the Civitas merger), retiring high‑coupon paper — this reduces interest expense and refinancing risk, improving near‑term cash flow and credit profile. Tender Offer Final Results
• Neutral Sentiment: BMO Capital Markets raised its price target to $33 from $26 but maintained a Market Perform rating — a higher target is supportive, though the neutral rating signals limited conviction compared with KeyBanc’s Overweight stance. BMO Price Target Raise

Analyst Ratings Changes

SM has been the subject of several recent research reports. BMO Capital Markets upped their price target on SM Energy from $26.00 to $33.00 and gave the company a “market perform” rating in a report on Thursday. TD Cowen decreased their price objective on SM Energy from $36.00 to $30.00 and set a “buy” rating on the stock in a report on Tuesday, March 17th. Roth Mkm restated a “buy” rating and set a $24.00 price objective on shares of SM Energy in a research report on Wednesday, February 18th. Truist Financial assumed coverage on SM Energy in a research note on Tuesday, March 24th. They issued a “buy” rating and a $38.00 target price for the company. Finally, National Bank Financial set a $30.00 target price on SM Energy in a research report on Tuesday, March 17th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, SM Energy currently has an average rating of “Hold” and an average price target of $32.62.

SM Energy Stock Up 3.9%

The stock has a market capitalization of $7.30 billion, a P/E ratio of 5.42 and a beta of 0.78. The firm’s fifty day moving average is $24.35 and its 200-day moving average is $21.98. The company has a current ratio of 0.69, a quick ratio of 0.69 and a debt-to-equity ratio of 0.48.

SM Energy (NYSE:SM) last issued its quarterly earnings data on Wednesday, February 25th. The energy company reported $0.83 earnings per share for the quarter, topping the consensus estimate of $0.73 by $0.10. The firm had revenue of $704.92 million for the quarter, compared to analysts’ expectations of $764.40 million. SM Energy had a net margin of 20.55% and a return on equity of 13.47%. The company’s quarterly revenue was down 17.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.91 earnings per share. As a group, equities research analysts predict that SM Energy Company will post 8.1 earnings per share for the current year.

SM Energy Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, March 23rd. Investors of record on Monday, March 9th were given a dividend of $0.22 per share. This is a boost from SM Energy’s previous quarterly dividend of $0.20. The ex-dividend date was Monday, March 9th. This represents a $0.88 dividend on an annualized basis and a yield of 2.9%. SM Energy’s dividend payout ratio is currently 15.58%.

Hedge Funds Weigh In On SM Energy

Several institutional investors have recently bought and sold shares of SM. Lighthouse Investment Partners LLC acquired a new position in SM Energy during the 3rd quarter worth about $4,619,000. Congress Asset Management Co. grew its holdings in SM Energy by 19.9% during the 3rd quarter. Congress Asset Management Co. now owns 1,212,775 shares of the energy company’s stock worth $30,283,000 after acquiring an additional 201,704 shares during the last quarter. Dynamic Technology Lab Private Ltd acquired a new stake in SM Energy in the 3rd quarter valued at about $1,190,000. Universal Beteiligungs und Servicegesellschaft mbH raised its stake in shares of SM Energy by 135.2% in the third quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 254,766 shares of the energy company’s stock worth $6,362,000 after acquiring an additional 146,444 shares during the last quarter. Finally, Westwood Holdings Group Inc. raised its stake in shares of SM Energy by 16.3% in the second quarter. Westwood Holdings Group Inc. now owns 3,731,350 shares of the energy company’s stock worth $92,202,000 after acquiring an additional 524,105 shares during the last quarter. Institutional investors own 94.56% of the company’s stock.

SM Energy Company Profile

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.