SM Energy Co. (NYSE:SM) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Tuesday. The brokerage presently has a $44.00 price objective on the energy company’s stock. Zacks Investment Research’s target price points to a potential upside of 9.84% from the company’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.”
Several other brokerages have also issued reports on SM. Mitsubishi UFJ Financial Group upgraded shares of SM Energy from an “underweight” rating to a “neutral” rating and set a $36.00 price target for the company in a research note on Tuesday, August 23rd. Seaport Global Securities upgraded shares of SM Energy from a “neutral” rating to a “buy” rating and increased their price target for the stock from $30.00 to $53.00 in a research note on Tuesday, August 30th. Cantor Fitzgerald reiterated a “hold” rating and issued a $24.00 price target on shares of SM Energy in a research note on Wednesday, August 3rd. KLR Group upgraded shares of SM Energy from an “accumulate” rating to a “buy” rating and increased their price target for the stock from $37.00 to $43.00 in a research note on Tuesday, August 9th. Finally, Barclays PLC increased their price target on shares of SM Energy from $32.00 to $40.00 and gave the stock an “overweight” rating in a research note on Thursday, August 4th. Two analysts have rated the stock with a sell rating, twelve have assigned a hold rating and thirteen have given a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus target price of $33.52.
SM Energy (NYSE:SM) opened at 40.06 on Tuesday. The firm has a 50-day moving average of $36.57 and a 200-day moving average of $29.58. SM Energy has a 1-year low of $6.99 and a 1-year high of $42.23. The stock’s market capitalization is $2.74 billion.
SM Energy (NYSE:SM) last posted its earnings results on Tuesday, August 2nd. The energy company reported ($0.44) EPS for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.71) by $0.27. SM Energy had a negative net margin of 73.55% and a negative return on equity of 9.92%. The firm earned $341.80 million during the quarter, compared to analysts’ expectations of $328.18 million. During the same period last year, the company posted $0.49 EPS. The company’s quarterly revenue was down 33.8% compared to the same quarter last year. Equities analysts expect that SM Energy will post ($2.38) EPS for the current fiscal year.
The business also recently announced a semiannual dividend, which will be paid on Wednesday, November 2nd. Stockholders of record on Friday, October 21st will be issued a $0.05 dividend. This represents a dividend yield of 0.29%. The ex-dividend date of this dividend is Wednesday, October 19th. SM Energy’s dividend payout ratio (DPR) is presently -0.80%.
In other news, SVP Kenneth J. Knott sold 661 shares of the business’s stock in a transaction on Thursday, September 29th. The shares were sold at an average price of $40.00, for a total value of $26,440.00. Following the transaction, the senior vice president now owns 43,417 shares of the company’s stock, valued at $1,736,680. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 1.70% of the stock is currently owned by insiders.
A number of large investors have recently made changes to their positions in SM. Macquarie Group Ltd. boosted its stake 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 acquired a new stake in shares of SM Energy during the second quarter valued at $838,000. Amalgamated Bank acquired a new stake in shares of SM Energy during the second quarter valued at $277,000. Legal & General Group Plc boosted its stake 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 boosted its stake 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. Institutional investors own 82.89% of the company’s stock.
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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