SM Energy Co. (SM) Upgraded to Buy by Zacks Investment Research
Zacks Investment Research upgraded shares of SM Energy Co. (NYSE:SM) from a hold rating to a buy rating in a research report sent to investors on Tuesday morning. The firm currently has $44.00 target price on the energy company’s stock.
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.”
SM has been the topic of a number of other reports. Seaport Global Securities upgraded shares of SM Energy from a neutral rating to a buy rating and lifted their price objective for the company from $30.00 to $53.00 in a report on Tuesday, August 30th. Williams Capital assumed coverage on shares of SM Energy in a research note on Monday, August 29th. They issued a buy rating and a $57.00 target price for the company. Cantor Fitzgerald reissued a hold rating on shares of SM Energy in a research note on Sunday, August 14th. Piper Jaffray Cos. raised shares of SM Energy from a neutral rating to an overweight rating in a research note on Monday, August 15th. Finally, Mitsubishi UFJ Financial Group raised shares of SM Energy from an underweight rating to a neutral rating and set a $36.00 target price for the company in a research note on Tuesday, August 23rd. Two analysts have rated the stock with a sell rating, twelve have issued a hold rating and thirteen have issued a buy rating to the company’s stock. SM Energy has an average rating of Hold and an average price target of $33.52.
SM Energy (NYSE:SM) traded up 2.5337% during trading on Tuesday, reaching $39.3832. 766,889 shares of the company traded hands. SM Energy has a 12 month low of $6.99 and a 12 month high of $42.23. The company’s 50-day moving average is $36.41 and its 200 day moving average is $29.51. The company’s market cap is $2.70 billion.
SM Energy (NYSE:SM) last posted its quarterly earnings data on Tuesday, August 2nd. The energy company reported ($0.44) earnings per share (EPS) for the quarter, beating the Zacks’ 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 company had revenue of $341.80 million for the quarter, compared to the consensus estimate of $328.18 million. During the same period last year, the company earned $0.49 earnings per share. The firm’s revenue was down 33.8% compared to the same quarter last year. On average, analysts anticipate that SM Energy will post ($2.38) earnings per share for the current year.
The company also recently disclosed a semiannual dividend, which will be paid on Wednesday, November 2nd. Stockholders of record on Friday, October 21st will be paid 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 is currently -0.80%.
In related news, SVP Kenneth J. Knott sold 661 shares of the company’s stock in a transaction that occurred on Thursday, September 29th. The stock was sold at an average price of $40.00, for a total value of $26,440.00. Following the sale, the senior vice president now directly owns 43,417 shares in the company, valued at $1,736,680. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 1.70% of the stock is owned by insiders.
Hedge funds have recently made changes to their positions in the stock. 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 during the last quarter. Mason Street Advisors LLC bought a new stake in shares of SM Energy during the second quarter valued at approximately $838,000. Amalgamated Bank bought a new stake in shares of SM Energy during the second quarter valued at approximately $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 during 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 during the last quarter. Institutional investors and hedge funds 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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