SM Energy (SM) Shares Gap Down After Earnings Miss

SM Energy Co (NYSE:SM) gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $25.49, but opened at $24.77. SM Energy shares last traded at $23.26, with a volume of 6129872 shares changing hands.

The energy company reported ($0.01) EPS for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.17). SM Energy had a net margin of 8.56% and a return on equity of 0.59%. The business had revenue of $459.37 million for the quarter, compared to the consensus estimate of $429.63 million. During the same quarter in the previous year, the business earned ($0.25) earnings per share. The firm’s revenue was up 55.5% on a year-over-year basis.

The firm also recently declared a semiannual dividend, which will be paid on Wednesday, November 7th. Shareholders of record on Friday, October 26th will be given a dividend of $0.05 per share. This represents a yield of 0.31%. The ex-dividend date of this dividend is Thursday, October 25th. SM Energy’s payout ratio is currently -12.20%.

Several research analysts have recently issued reports on SM shares. Williams Capital set a $44.00 target price on shares of SM Energy and gave the stock a “buy” rating in a report on Friday. JPMorgan Chase & Co. raised their target price on shares of SM Energy from $32.00 to $36.00 and gave the stock a “$26.55” rating in a report on Monday, July 23rd. TheStreet upgraded shares of SM Energy from a “d+” rating to a “c-” rating in a report on Monday, July 9th. Royal Bank of Canada restated a “hold” rating and issued a $26.00 target price on shares of SM Energy in a report on Friday, July 20th. Finally, Stifel Nicolaus raised their target price on shares of SM Energy from $40.00 to $41.00 and gave the stock a “buy” rating in a report on Friday, July 20th. Six research analysts have rated the stock with a hold rating and fifteen have given a buy rating to the stock. The company currently has an average rating of “Buy” and an average price target of $32.31.

Several institutional investors have recently modified their holdings of SM. Arizona State Retirement System lifted its stake in SM Energy by 2.6% in the second quarter. Arizona State Retirement System now owns 71,338 shares of the energy company’s stock worth $1,833,000 after acquiring an additional 1,819 shares during the period. Radnor Capital Management LLC lifted its stake in SM Energy by 18.7% in the third quarter. Radnor Capital Management LLC now owns 13,950 shares of the energy company’s stock worth $440,000 after acquiring an additional 2,200 shares during the period. Aperio Group LLC lifted its stake in SM Energy by 4.7% in the third quarter. Aperio Group LLC now owns 50,268 shares of the energy company’s stock worth $1,585,000 after acquiring an additional 2,277 shares during the period. Russell Investments Group Ltd. lifted its stake in SM Energy by 50.2% in the second quarter. Russell Investments Group Ltd. now owns 7,685 shares of the energy company’s stock worth $199,000 after acquiring an additional 2,570 shares during the period. Finally, Oregon Public Employees Retirement Fund lifted its stake in SM Energy by 7.7% in the second quarter. Oregon Public Employees Retirement Fund now owns 39,598 shares of the energy company’s stock worth $1,017,000 after acquiring an additional 2,835 shares during the period.

The company has a market capitalization of $2.61 billion, a P/E ratio of -28.37, a price-to-earnings-growth ratio of 4.95 and a beta of 2.99. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.94.

About SM Energy (NYSE:SM)

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of crude oil and condensate, natural gas, and natural gas liquids in onshore North America. It primarily has operations in the Midland Basin and the Eagle Ford shale in Texas. As of December 31, 2017, the company had 468.1 million barrels of oil equivalent of estimated proved reserves; and working interests in 919 net productive oil wells and 489 net productive gas wells.

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