SM Energy Company (NYSE:SM – Get Free Report) shares gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $36.67, but opened at $34.04. SM Energy shares last traded at $33.9310, with a volume of 425,080 shares trading hands.
The energy company reported $1.95 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.01 by ($0.06). SM Energy had a net margin of 18.20% and a return on equity of 17.93%. The firm had revenue of $2.16 billion during the quarter, compared to analysts’ expectations of $2.04 billion. During the same quarter last year, the company posted $1.33 earnings per share. SM Energy’s revenue for the quarter was up 167.2% on a year-over-year basis.
SM Energy Dividend Announcement
The company also recently disclosed a quarterly dividend, which was paid on Monday, September 21st. Investors of record on Monday, September 7th were paid a dividend of $0.22 per share. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.88 annualized dividend and a dividend yield of 2.6%. SM Energy’s dividend payout ratio is presently 17.32%.
Key SM Energy News
Here are the key news stories impacting SM Energy this week:
- Positive Sentiment: Revenue rose 167.2% year over year to $2.16 billion, beating the $2.04 billion consensus. Operating cash flow was $1.1 billion, and reports said quarterly cash flow more than doubled as merger synergies reached $400 million. SM Energy Reports Third Quarter 2026 Results SM Energy Q3 cash flow more than doubles as merger synergies hit $400 million
- Positive Sentiment: Strong cash generation helped fund $417 million of debt redemption and $133 million returned to stockholders, supporting deleveraging and shareholder returns. SM Energy Reports Third Quarter 2026 Results
- Neutral Sentiment: Some coverage questioned whether the shares remain a bargain after a 103% run, suggesting expectations and valuation may temper enthusiasm despite the revenue beat. Can SM Energy (SM) Still Be A Bargain After A 103% Run?
- Negative Sentiment: Third-quarter EPS of $1.95 missed analyst estimates of about $2.01, although it was up from $1.33 a year earlier. The shortfall could weigh on sentiment despite the substantial revenue growth. SM Energy (SM) Q3 Earnings Lag Estimates
Analysts Set New Price Targets
Several research analysts have weighed in on SM shares. Stephens cut their price target on SM Energy from $61.00 to $52.00 and set an “overweight” rating for the company in a report on Tuesday, July 7th. Susquehanna raised their price objective on SM Energy from $32.00 to $44.00 and gave the stock a “neutral” rating in a report on Tuesday, October 20th. Truist Financial lifted their price objective on SM Energy from $43.00 to $48.00 and gave the company a “buy” rating in a research report on Wednesday, October 7th. Wall Street Zen upgraded SM Energy from a “buy” rating to a “strong-buy” rating in a research note on Saturday, September 19th. Finally, UBS Group upped their target price on SM Energy from $36.00 to $48.00 and gave the company a “buy” rating in a research note on Monday, September 14th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $40.59.
View Our Latest Stock Report on SM Energy
Insider Activity at SM Energy
In other news, Director Ashwin Venkatraman sold 3,650 shares of the business’s stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $38.28, for a total transaction of $139,722.00. Following the completion of the sale, the director directly owned 12,525 shares of the company’s stock, valued at $479,457. The trade was a 22.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP James Barker Lebeck sold 17,500 shares of the business’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $37.02, for a total transaction of $647,850.00. Following the sale, the executive vice president directly owned 14,705 shares of the company’s stock, valued at $544,379.10. This represents a 54.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.45% of the company’s stock.
Institutional Inflows and Outflows
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SM. Torren Management LLC raised its stake in shares of SM Energy by 4,561.1% during the first quarter. Torren Management LLC now owns 839 shares of the energy company’s stock valued at $26,000 after purchasing an additional 821 shares in the last quarter. Heritage Family Offices LLP acquired a new stake in SM Energy in the third quarter worth about $30,000. CoreCap Advisors LLC grew its position in SM Energy by 211.2% in the 3rd quarter. CoreCap Advisors LLC now owns 974 shares of the energy company’s stock valued at $33,000 after buying an additional 661 shares in the last quarter. Center for Financial Planning Inc. bought a new position in SM Energy in the 1st quarter valued at about $31,000. Finally, Valued Wealth Advisors LLC bought a new position in SM Energy in the 1st quarter valued at about $33,000. Institutional investors and hedge funds own 94.56% of the company’s stock.
SM Energy Stock Performance
The stock has a market cap of $8.05 billion, a price-to-earnings ratio of 6.66 and a beta of 0.80. The company has a debt-to-equity ratio of 0.85, a quick ratio of 0.62 and a current ratio of 0.62. The company’s 50 day simple moving average is $37.15 and its 200 day simple moving average is $30.40.
SM Energy Company Profile
SM Energy Company is an independent energy company engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. Its activities include acquiring prospective acreage, drilling and completing wells, and managing producing properties in U.S. onshore oil and gas basins.
The company’s operations are primarily concentrated in Texas, including the Midland Basin in West Texas and the Eagle Ford shale region in South Texas. SM Energy focuses on development of unconventional resources and uses horizontal drilling and hydraulic fracturing technologies to produce hydrocarbons from shale and other tight-rock formations.
Founded in 1908 as St.
Further Reading
- Five stocks we like better than SM Energy
- High Voltage Returns: Talen Energy Powers the Data Center Rush
- 3 Dividend Increases Above 10%, But Which Offers the Most Income?
- Meta’s $100 Billion AI Financing Plan Has a Catch for Existing Shareholders
- Tower Semiconductor’s Earnings Are Soaring—So Why Is Its Stock Down More Than 50%?
Receive News & Ratings for SM Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SM Energy and related companies with MarketBeat.com's FREE daily email newsletter.
