SM Energy Co (NYSE: SM)’s stock price has decreased by -0.52 compared to its previous closing price of 52.01. However, the company has seen a 1.79% increase in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-09 that It is now prudent to invest in momentum energy stocks like Murphy USA (MUSA), SM Energy (SM) and Valero Energy (VLO).
Is It Worth Investing in SM Energy Co (NYSE: SM) Right Now?
SM Energy Co (NYSE: SM) has a higher price-to-earnings ratio of 7.53x compared to its average ratio, The 36-month beta value for SM is at 4.24. Analysts have varying views on the stock, with 6 analysts rating it as a “buy,” 4 rating it as “overweight,” 10 as “hold,” and 0 as “sell.”
The public float for SM is 113.52M, and currently, shorts hold a 8.17% of that float. The average trading volume for SM on April 10, 2024 was 1.63M shares.
SM’s Market Performance
SM stock saw an increase of 1.79% in the past week, with a monthly gain of 14.80% and a quarterly increase of 35.48%. The volatility ratio for the week is 2.29%, and the volatility levels for the last 30 days are 2.25% for SM Energy Co (SM). The simple moving average for the last 20 days is 5.70% for SM stock, with a simple moving average of 32.09% for the last 200 days.
Analysts’ Opinion of SM
Many brokerage firms have already submitted their reports for SM stocks, with Seaport Research Partners repeating the rating for SM by listing it as a “Buy.” The predicted price for SM in the upcoming period, according to Seaport Research Partners is $50 based on the research report published on January 31, 2024 of the current year 2024.
Wells Fargo, on the other hand, stated in their research note that they expect to see SM reach a price target of $40. The rating they have provided for SM stocks is “Equal Weight” according to the report published on November 15th, 2023.
JP Morgan gave a rating of “Overweight” to SM, setting the target price at $47 in the report published on August 16th of the previous year.
SM Trading at 19.05% from the 50-Day Moving Average
After a stumble in the market that brought SM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -2.85% of loss for the given period.
Volatility was left at 2.25%, however, over the last 30 days, the volatility rate increased by 2.29%, as shares surge +14.07% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +39.12% upper at present.
During the last 5 trading sessions, SM rose by +1.79%, which changed the moving average for the period of 200-days by +81.10% in comparison to the 20-day moving average, which settled at $49.27. In addition, SM Energy Co saw 33.63% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SM starting from Lutey Mary Ellen, who sale 43,506 shares at the price of $44.50 back on Mar 01 ’24. After this action, Lutey Mary Ellen now owns 12,472 shares of SM Energy Co, valued at $1,936,017 using the latest closing price.
Quintana Julio M, the Director of SM Energy Co, sale 44,000 shares at $42.06 during a trade that took place back on Aug 30 ’23, which means that Quintana Julio M is holding 89,028 shares at $1,850,640 based on the most recent closing price.
Stock Fundamentals for SM
Current profitability levels for the company are sitting at:
- 0.42 for the present operating margin
- 0.47 for the gross margin
The net margin for SM Energy Co stands at 0.35. The total capital return value is set at 0.17. Equity return is now at value 24.41, with 13.32 for asset returns.
Based on SM Energy Co (SM), the company’s capital structure generated 0.31 points at debt to capital in total, while cash flow to debt ratio is standing at 0.99. The debt to equity ratio resting at 0.44. The interest coverage ratio of the stock is 10.77.
Currently, EBITDA for the company is 1.63 billion with net debt to EBITDA at 0.59. When we switch over and look at the enterprise to sales, we see a ratio of 2.94. The receivables turnover for the company is 10.23for trailing twelve months and the total asset turnover is 0.37. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.45.
Conclusion
In conclusion, SM Energy Co (SM) has had a better performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
