SM Energy (NYSE:SM) Stock Price Down 8% – Time to Sell?

SM Energy Company (NYSE:SM)’s stock price was down 8% during mid-day trading on Thursday . The company traded as low as $19.25 and last traded at $20.2830. Approximately 3,168,716 shares changed hands during mid-day trading, a decline of 52% from the average daily volume of 6,569,376 shares. The stock had previously closed at $22.05.

More 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

Analyst Ratings Changes

A number of equities research analysts recently weighed in on SM shares. Mizuho set a $34.00 price objective on SM Energy in a research note on Friday, January 9th. Zacks Research upgraded shares of SM Energy from a “strong sell” rating to a “hold” rating in a report on Monday, February 16th. Susquehanna reduced their price objective on shares of SM Energy from $21.00 to $19.00 and set a “neutral” rating for the company in a research note on Monday, January 26th. Weiss Ratings reissued a “hold (c-)” rating on shares of SM Energy in a research report on Wednesday, January 21st. Finally, Roth Mkm reaffirmed a “buy” rating and set a $24.00 price target on shares of SM Energy in a research report on Wednesday, February 18th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, SM Energy currently has an average rating of “Hold” and an average target price of $32.20.

SM Energy Trading Down 2.8%

The company has a 50 day simple moving average of $19.65 and a two-hundred day simple moving average of $21.87. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.56 and a current ratio of 0.56. The firm 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 released its earnings results on Wednesday, February 25th. The energy company reported $0.83 EPS for the quarter, topping analysts’ consensus estimates of $0.73 by $0.10. The firm had revenue of $705.00 million during the quarter, compared to the consensus estimate of $764.40 million. SM Energy had a return on equity of 16.67% and a net margin of 22.03%.The company’s revenue was down 17.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.91 earnings per share. Analysts expect that SM Energy Company will post 8.1 EPS for the current fiscal year.

SM Energy Increases Dividend

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SM. CSM Advisors LLC acquired a new stake in shares of SM Energy in the second quarter valued at about $4,134,000. Congress Asset Management Co. increased its holdings in shares of SM Energy by 19.9% in the third 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 position in SM Energy by 33.1% during the second quarter. Prudential Financial Inc. now owns 294,546 shares of the energy company’s stock worth $7,278,000 after buying an additional 73,240 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH boosted its stake in SM Energy by 135.2% during the third quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 254,766 shares of the energy company’s stock worth $6,362,000 after buying an additional 146,444 shares during the last quarter. Finally, Campbell & CO Investment Adviser LLC purchased a new stake in SM Energy in the 2nd quarter valued at $1,709,000. 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.