SM Energy (NYSE:SM) Trading Down 8% – What’s Next?

Shares of SM Energy Company (NYSE:SM) fell 8% on Thursday . The stock traded as low as $19.25 and last traded at $20.2830. 3,168,716 shares traded hands during trading, a decline of 52% from the average session volume of 6,569,376 shares. The stock had previously closed at $22.05.

Key SM Energy News

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

• Positive Sentiment: Board raised the quarterly dividend 10% to $0.22 (annualized yield ~4.2%) and set an accelerated return?of?capital framework — supports income investors and signals management confidence in cash generation. SM ENERGY PROVIDES 2026 OUTLOOK
• Positive Sentiment: Company issued a 2026 outlook prioritizing free?cash?flow maximization and balance?sheet strength — an overt shift toward returning capital and lower reinvestment risk that can support multiple expansion. SM ENERGY PROVIDES 2026 OUTLOOK
• Positive Sentiment: Reported record full?year 2025 production (75.5 MMBoe) and record operating cash flow / adjusted EBITDAX after the Civitas merger — supports the growth story and cash?flow guidance. SM Energy Posts Record 2025 Results After Civitas Merger
• Positive Sentiment: Q4 EPS of $0.83 topped consensus ($0.73), and margins/ROE remain robust — shows profit conversion even as revenue trends soften. Listen to Conference Call
• Positive Sentiment: Short interest fell ~16.7% in February to ~12.6M shares (~11.2% of float), reducing short?pressure and potential volatility from squeezes. No link provided
• Neutral Sentiment: Analyst/press commentary and earnings outlook pieces are circulating; these provide varied takes on sustainability of post?merger results — watch analyst revisions. SM Energy’s Earnings Outlook
• Negative Sentiment: Revenue missed expectations: Q4 sales $705M vs. $764M expected and revenue was down 17.3% year?over?year — raises questions about demand, pricing or mix. Listen to Conference Call
• Negative Sentiment: Coverage flagged a “post?merger earnings test” and an asset?sale push to optimize the balance sheet — investors may worry about one?time gains, execution risk and sustainability of margins. SM Energy faces postmerger earnings test amid asset sale push

Wall Street Analysts Forecast Growth

SM has been the topic of a number of analyst reports. TD Cowen raised shares of SM Energy to a “strong-buy” rating in a research note on Monday, February 9th. Susquehanna reduced their price target on shares of SM Energy from $21.00 to $19.00 and set a “neutral” rating on the stock in a research report on Monday, January 26th. Royal Bank Of Canada decreased their price objective on SM Energy from $35.00 to $29.00 and set a “sector perform” rating on the stock in a report on Tuesday, January 13th. Siebert Williams Shank cut SM Energy from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, February 18th. Finally, Mizuho set a $34.00 target price on SM Energy in a research report on Friday, January 9th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $32.20.

SM Energy Trading Down 2.8%

The business has a 50-day simple moving average of $19.65 and a 200-day simple moving average of $21.87. The company has a quick ratio of 0.56, a current ratio of 0.56 and a debt-to-equity ratio of 0.49. The company has a market cap of $2.46 billion, a PE ratio of 3.38 and a beta of 1.14.

SM Energy (NYSE:SM) last issued its quarterly earnings results on Wednesday, February 25th. The energy company reported $0.83 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.73 by $0.10. SM Energy had a net margin of 22.03% and a return on equity of 16.67%. The company had revenue of $705.00 million for the quarter, compared to analyst estimates of $764.40 million. During the same period in the prior year, the firm earned $1.91 earnings per share. The business’s revenue for the quarter was down 17.3% compared to the same quarter last year. On average, analysts predict that SM Energy Company will post 8.1 EPS for the current fiscal year.

SM Energy Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 23rd. Shareholders of record on Monday, March 9th will be given a $0.22 dividend. The ex-dividend date of this dividend is Monday, March 9th. This represents a $0.88 annualized dividend and a yield of 4.1%. This is a boost from SM Energy’s previous quarterly dividend of $0.20. SM Energy’s dividend payout ratio is 12.62%.

Institutional Trading of SM Energy

Hedge funds have recently modified their holdings of the stock. First Horizon Corp purchased a new stake in SM Energy during the 3rd quarter worth about $30,000. Jones Financial Companies Lllp grew its position in shares of SM Energy by 316.7% during the third quarter. Jones Financial Companies Lllp now owns 1,200 shares of the energy company’s stock worth $33,000 after buying an additional 912 shares in the last quarter. Johnson Financial Group Inc. purchased a new stake in shares of SM Energy during the third quarter worth approximately $31,000. NBC Securities Inc. increased its stake in shares of SM Energy by 160.5% during the fourth quarter. NBC Securities Inc. now owns 1,347 shares of the energy company’s stock worth $25,000 after buying an additional 830 shares during the period. Finally, SBI Securities Co. Ltd. raised its holdings in SM Energy by 10,461.5% in the fourth quarter. SBI Securities Co. Ltd. now owns 1,373 shares of the energy company’s stock valued at $26,000 after acquiring an additional 1,360 shares in the last quarter. 94.56% of the stock is currently owned by institutional investors and hedge funds.

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.