StockNews.com Upgrades SM Energy to 'Buy'

On February 22, 2025, SM Energy (NYSE:SM) received an upgrade from equities research analysts at StockNews.com, moving its rating from "hold" to "buy." This change signifies a more positive outlook for the company's stock.

Other investment firms have also recently released their assessments of SM Energy. For instance, Stephens reaffirmed an "overweight" rating, setting a target price of $57.00 for the shares of SM Energy in a report published on January 2. Additionally, Truist Financial increased their target price from $42.00 to $45.00, maintaining a "hold" rating as of January 13.

In a report dated November 5, Susquehanna reduced their price target for the company from $48.00 to $46.00, establishing a "neutral" rating. On December 17, Wells Fargo & Company lowered their price objective from $47.00 to $45.00 and labeled the stock as "equal weight." Finally, on December 4, JPMorgan Chase & Co. reiterated their "neutral" rating while slightly adjusting their target price upward from $51.00 to $53.00.

According to MarketBeat.com, the stock currently enjoys a balanced outlook with six analysts rating it as a hold, six as a buy, and one issuing a strong buy recommendation. Overall, the average rating stands at "Moderate Buy" with an average price target of $51.90.

Current Performance of SM Energy

On the trading session of February 22, SM Energy shares opened at $34.37. As of this date, the company has a market capitalization of approximately $3.93 billion, with a price-to-earnings ratio of 5.15. The stock's volatility is noted, as it has a beta of 4.11.

In the last twelve months, shares of the company reached a low of $34.06 and a high of $53.26. It maintains solid liquidity with a current ratio of 3.52 alongside a quick ratio of 3.52, and a reasonable debt-to-equity ratio of 0.67. The stock's fifty-day moving average is $39.64, while the two-hundred-day moving average stands at $41.77.

Recent Earnings Report

Recently, on February 19, SM Energy disclosed its quarterly earnings. The company reported earnings per share of $1.91, which fell short of analysts' expectations of $2.00 by $0.09. The revenue for the quarter reached $852.22 million, slightly surpassing the projected $849.44 million. SM Energy recorded a strong net margin of 28.63% and a robust return on equity of 20.30%. Analysts predict the company will deliver an earnings per share of 8.1 for the current year.

Institutional Investor Activity

Recent actions by institutional investors indicate a growing interest in SM Energy. For instance, Barclays PLC boosted its stake by 47.3% in the third quarter, acquiring a total of 250,218 shares valued at around $10 million after adding 80,343 shares during the quarter. National Bank of Canada FI entered the fray with a new position worth $259,000 during the same period.

Moreover, Los Angeles Capital Management LLC increased its holdings by 79.2%, now owning 65,421 shares after acquiring an additional 28,920 shares. World Investment Advisors LLC made a new investment valued at $3.048 million, while Janney Montgomery Scott LLC raised its position by an impressive 144.6%, now holding 22,357 shares after a recent buy.

A noteworthy 94.56% of SM Energy's stock is currently held by institutional investors, reflecting strong institutional confidence in the company.

SM Energy Background

SM Energy Company is an independent energy entity engaged in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids primarily in Texas. The company possesses working interests in oil and gas production wells located in the Midland Basin and South Texas.

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