SM Energy (NYSE:SM) Stock Price Up 8.6% – Still a Buy?

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

Trending Headlines about SM Energy

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

Analyst Upgrades and Downgrades

SM has been the topic of a number of research analyst reports. Weiss Ratings reiterated a “hold (c-)” rating on shares of SM Energy in a 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. KeyCorp dropped their price target on SM Energy from $36.00 to $28.00 and set an “overweight” rating for the company in a research note on Wednesday, December 10th. Susquehanna cut their price objective on SM Energy from $21.00 to $19.00 and set a “neutral” rating on the stock in a report on Monday, January 26th. Finally, Mizuho set a $34.00 price target on shares of SM Energy in a report on Friday, January 9th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $32.80.

SM Energy Price Performance

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

SM Energy Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, January 9th. Investors of record on Friday, December 26th were issued a $0.20 dividend. The ex-dividend date of this dividend was Friday, December 26th. This represents a $0.80 dividend on an annualized basis and a yield of 3.4%. SM Energy’s dividend payout ratio is currently 12.62%.

Hedge Funds Weigh In On SM Energy

Several institutional investors and hedge funds have recently made changes to their positions in the business. Royal Bank of Canada increased its stake in shares of SM Energy by 27.7% in the first quarter. Royal Bank of Canada now owns 91,916 shares of the energy company’s stock worth $2,753,000 after buying an additional 19,965 shares during the last quarter. AQR Capital Management LLC boosted its stake in SM Energy by 43.9% during the 1st quarter. AQR Capital Management LLC now owns 145,922 shares of the energy company’s stock valued at $4,370,000 after acquiring an additional 44,542 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in SM Energy by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 68,111 shares of the energy company’s stock worth $2,040,000 after acquiring an additional 2,969 shares in the last quarter. NewEdge Advisors LLC increased its position in shares of SM Energy by 44.9% in the 1st quarter. NewEdge Advisors LLC now owns 3,248 shares of the energy company’s stock worth $97,000 after purchasing an additional 1,007 shares during the last quarter. Finally, United Services Automobile Association acquired a new stake in shares of SM Energy in the 1st quarter valued at about $222,000. 94.56% of the stock is currently owned by hedge funds and other institutional investors.

SM Energy Company Profile

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.