SM Energy (NYSE:SM) Trading Up 8.6% – Here’s What Happened

SM Energy Company (NYSE:SM)’s share price traded up 8.6% during trading on Wednesday . The company traded as high as $23.32 and last traded at $23.5450. 7,438,152 shares were traded during trading, an increase of 15% from the average session volume of 6,464,589 shares. The stock had previously closed at $21.68.

More SM Energy News

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

• Positive Sentiment: SM announced an agreement to sell select South Texas assets to Caturus Energy for $950 million in cash; management says proceeds will accelerate deleveraging and help achieve its >$1.0 billion asset-sale goal, which should reduce leverage and lower refinancing risk. SM ENERGY ANNOUNCES AGREEMENT TO SELL $950 MILLION IN ASSETS
• Positive Sentiment: An independent outlet reported the sale and highlighted the intent to bolster the capital structure, reinforcing the market view that the transaction materially reduces balance-sheet risk. SM Energy to sell some Texas assets for $950 million
• Neutral Sentiment: SM is scheduled to report quarterly earnings on Wednesday — the release and accompanying guidance/discussion could cause short-term volatility despite the balance-sheet improvement. SM Energy (SM) to Release Earnings on Wednesday
• Neutral Sentiment: Analyst consensus remains around a “Hold” rating, indicating mixed expectations from the sell?side despite the asset sale; watch for any updates to price targets. SM Energy Company (NYSE:SM) Given Average Rating of “Hold” by Analysts
• Positive Sentiment: Zacks Research upgraded SM from “strong sell” to “hold,” signaling some improvement in analyst sentiment that may support the rally. Zacks.com
• Negative Sentiment: Zacks also published a note saying analysts expect SM to report a decline in earnings and that the company lacks the key ingredients for an earnings beat — a potential near?term headwind if results or guidance disappoint. Analysts Estimate SM Energy (SM) to Report a Decline in Earnings: What to Look Out for

Wall Street Analyst Weigh In

A number of brokerages have issued reports on SM. Zacks Research raised SM Energy from a “strong sell” rating to a “hold” rating in a research note on Monday. Weiss Ratings restated a “hold (c-)” rating on shares of SM Energy in a research report on Wednesday, January 21st. Roth Mkm reiterated a “buy” rating and issued a $24.00 target price on shares of SM Energy in a report on Wednesday. TD Cowen raised shares of SM Energy to a “strong-buy” rating in a research note on Monday, February 9th. Finally, Mizuho set a $34.00 price target on shares of SM Energy in a research report on Friday, January 9th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, SM Energy has a consensus rating of “Hold” and a consensus price target of $32.80.

SM Energy Price Performance

The company has a debt-to-equity ratio of 0.49, a current ratio of 0.56 and a quick ratio of 0.56. The company has a 50-day simple moving average of $19.23 and a 200-day simple moving average of $21.99. The stock has a market cap of $2.69 billion, a PE ratio of 3.71 and a beta of 1.14.

SM Energy Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 9th. Investors of record on Friday, December 26th were paid a $0.20 dividend. The ex-dividend date was Friday, December 26th. This represents a $0.80 annualized dividend and a dividend yield of 3.4%. SM Energy’s dividend payout ratio (DPR) is 12.62%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. CSM Advisors LLC purchased a new position in shares of SM Energy during the 2nd quarter worth approximately $4,134,000. Congress Asset Management Co. raised its stake in SM Energy by 19.9% in the 3rd quarter. Congress Asset Management Co. now owns 1,212,775 shares of the energy company’s stock valued at $30,283,000 after purchasing an additional 201,704 shares during the last quarter. Prudential Financial Inc. lifted its holdings in SM Energy by 33.1% in the 2nd quarter. Prudential Financial Inc. now owns 294,546 shares of the energy company’s stock valued at $7,278,000 after purchasing an additional 73,240 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH lifted its holdings in SM Energy by 135.2% in the 3rd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 254,766 shares of the energy company’s stock valued at $6,362,000 after purchasing an additional 146,444 shares in the last quarter. Finally, Campbell & CO Investment Adviser LLC acquired a new stake in shares of SM Energy during the 2nd quarter worth about $1,709,000. 94.56% of the stock is owned by hedge funds and other institutional investors.

About SM Energy

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.