SM Energy Company (SM) Rating Lowered to Sell at Zacks Investment Research
Zacks Investment Research cut shares of SM Energy Company (NYSE:SM) from a hold rating to a sell rating in a research report report published on Thursday.
According to Zacks, “Though SM Energy holds considerable acreage in the Williston Basin, most of its holdings lie in the region having low yield. Thus, its results will likely lag its peers who have acreage in the core region of the Bakken. The company is facing pressure on top line. Over the past three years (2014–2016), total revenues declined at a CAGR of 30.5%. Continued pressure on oil and gas prices are the primarily reasons for decrease in revenues. We are also concerned with the company’s high debt load. At the end of the first quarter, SM Energy’s debt balance stood at $2,898.6 million compared with cash balance of $659.1 million in the balance sheet. In fact, the company’s debt-to-capitalization ratio is 52.6%, higher than the broader industry average of 50.3%.”
Other equities research analysts have also issued reports about the company. Royal Bank Of Canada reissued a hold rating and set a $38.00 price objective on shares of SM Energy in a research note on Friday, March 31st. Credit Suisse Group assumed coverage on SM Energy in a research note on Thursday, June 1st. They set an outperform rating and a $30.00 price objective for the company. Williams Capital reissued a buy rating and set a $40.00 price objective on shares of SM Energy in a research note on Wednesday, May 3rd. Bank of America Corporation lowered SM Energy from a buy rating to a neutral rating and reduced their price objective for the stock from $48.00 to $37.00 in a research note on Thursday, May 11th. Finally, Scotiabank lowered SM Energy from an outperform rating to a sector perform rating and set a $24.00 price objective for the company. in a research note on Tuesday, May 16th. One research analyst has rated the stock with a sell rating, ten have issued a hold rating and eleven have assigned a buy rating to the company’s stock. The company has a consensus rating of Hold and a consensus target price of $35.65.
SM Energy (NYSE:SM) traded down 6.0243% during mid-day trading on Thursday, reaching $16.9908. The company’s stock had a trading volume of 1,102,344 shares. The firm’s 50 day moving average price is $16.58 and its 200 day moving average price is $22.41. SM Energy has a 52 week low of $13.76 and a 52 week high of $43.09. The firm’s market capitalization is $1.89 billion.
SM Energy (NYSE:SM) last issued its quarterly earnings results on Tuesday, May 2nd. The energy company reported $0.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.36) by $0.54. The firm had revenue of $372.74 million during the quarter, compared to analyst estimates of $309.43 million. SM Energy had a negative return on equity of 3.28% and a negative net margin of 23.23%. On average, analysts anticipate that SM Energy will post ($0.99) EPS for the current fiscal year.
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In other news, CEO Javan D. Ottoson acquired 2,000 shares of the business’s stock in a transaction that occurred on Thursday, June 8th. The stock was acquired at an average cost of $16.44 per share, for a total transaction of $32,880.00. Following the completion of the acquisition, the chief executive officer now owns 143,302 shares in the company, valued at $2,355,884.88. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Herbert S. Vogel acquired 3,000 shares of the business’s stock in a transaction that occurred on Thursday, June 8th. The shares were purchased at an average price of $16.60 per share, with a total value of $49,800.00. Following the completion of the acquisition, the executive vice president now owns 32,637 shares of the company’s stock, valued at approximately $541,774.20. The disclosure for this purchase can be found here. 0.89% of the stock is currently owned by company insiders.
A number of institutional investors have recently bought and sold shares of SM. Vanguard Group Inc. raised its position in SM Energy by 16.2% in the first quarter. Vanguard Group Inc. now owns 8,779,746 shares of the energy company’s stock valued at $210,889,000 after buying an additional 1,226,564 shares during the period. Causeway Capital Management LLC raised its position in SM Energy by 230.1% in the first quarter. Causeway Capital Management LLC now owns 6,909,664 shares of the energy company’s stock valued at $189,801,000 after buying an additional 4,816,230 shares during the period. State Street Corp raised its position in SM Energy by 15.7% in the first quarter. State Street Corp now owns 4,415,234 shares of the energy company’s stock valued at $106,054,000 after buying an additional 600,265 shares during the period. Alliancebernstein L.P. raised its position in SM Energy by 33.1% in the first quarter. Alliancebernstein L.P. now owns 3,993,599 shares of the energy company’s stock valued at $95,926,000 after buying an additional 994,186 shares during the period. Finally, Reservoir Operations L.P. bought a new position in SM Energy during the first quarter valued at $80,383,000. Institutional investors own 98.22% of the company’s stock.
About SM Energy
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 in onshore North America. It operates in the exploration and production segment of the oil and gas industry within the United States.
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