SM Energy Company [SM] stock Downgrade by RBC Capital Mkts analyst, price target now $27

SM Energy Company [NYSE: SM] traded at a low on 07/16/21, posting a -6.56 loss after which it closed the day’ session at $19.08. The company report on June 23, 2021 that SM Energy Company Announces Early Results And Upsizing Of Tender Offer And Consent Solicitation.

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SM Energy Company (“SM Energy”) (NYSE: SM) announced the early results and upsizing of its previously announced tender offer (the “Offers”) to purchase (i) any and all of its outstanding 6.125% Senior Notes due 2022 (the “2022 Notes”) and (ii) a portion of its outstanding 5.000% Senior Notes due 2024 (the “2024 Notes” and, together with the 2022 Notes, the “Notes”). SM Energy has amended the terms of the Offer for the 2024 Notes to increase the aggregate principal amount of 2024 Notes subject to the Offer (the “Tender Cap”) from $130,000,000 to $172,265,000, which is the aggregate principal amount of 2024 Notes that had been validly tendered and not validly withdrawn as of the Early Tender Date (as defined below). The Offers are subject to the terms and conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated June 9, 2021 (as amended by this press release and as it may be further amended or supplemented from time to time, the “Offer to Purchase”). The Offer to Purchase contains a related solicitation of consents (the “Consent Solicitation” and, together with the Offers, the “Tender Offer”) from holders of the 2022 Notes to certain proposed amendments (the “Proposed Amendments”) to the indenture governing the 2022 Notes (the “Consents”).

The following table sets forth, among other things, the principal amount of Notes validly tendered and accepted for purchase as of 5:00 p.m., New York City time, on June 22, 2021 (such date, the “Early Tender Date”):.

The results of the trading session contributed to over 3897622 shares changing hands. Over the past one week, the price volatility of SM Energy Company stands at 7.16% while the volatility over the past one month is 7.16%.

The market cap for SM stock reached $2.41 billion, with 114.76 million shares outstanding and 114.59 million shares in the current float. Compared to the average trading volume of 3.37M shares, SM reached a trading volume of 3897622 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about SM Energy Company [SM]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SM shares is $25.06 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SM stock is a recommendation set at 2.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

RBC Capital Mkts have made an estimate for SM Energy Company shares, keeping their opinion on the stock as Sector Perform, with their previous recommendation back on June 10, 2021. The new note on the price target was released on March 09, 2021, representing the official price target for SM Energy Company stock. Previously, the target price had yet another raise to $13, while JP Morgan analysts kept a Neutral rating on SM stock.

The Average True Range (ATR) for SM Energy Company is set at 1.57, with the Price to Sales ratio for SM stock in the period of the last 12 months amounting to 1.98. The Price to Book ratio for the last quarter was 1.24, with the Price to Cash per share for the same quarter was set at 0.00. Price to Free Cash Flow for SM in the course of the last twelve months was 3.64 with Quick ratio for the last quarter at 0.30.

How has SM stock performed recently?

SM Energy Company [SM] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -19.19. With this latest performance, SM shares dropped by -15.12% in over the last four-week period, additionally plugging by 114.86% over the last 6 months – not to mention a rise of 412.90% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SM stock in for the last two-week period is set at 35.43, with the RSI for the last a single of trading hit 26.35, and the three-weeks RSI is set at 41.34 for SM Energy Company [SM]. The present Moving Average for the last 50 days of trading for this stock 21.27, while it was recorded at 21.25 for the last single week of trading, and 12.34 for the last 200 days.

SM Energy Company [SM]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and SM Energy Company [SM] shares currently have an operating margin of -24.31 and a Gross Margin at -13.13. SM Energy Company’s Net Margin is presently recorded at -67.87.

Return on Total Capital for SM is now -5.60, given the latest momentum, and Return on Invested Capital for the company is -15.69. Return on Equity for this stock declined to -32.09, with Return on Assets sitting at -13.42. When it comes to the capital structure of this company, SM Energy Company [SM] has a Total Debt to Total Equity ratio set at 111.01. Additionally, SM Total Debt to Total Capital is recorded at 52.61, with Total Debt to Total Assets ending up at 44.14. Long-Term Debt to Equity for the company is recorded at 110.42, with the Long-Term Debt to Total Capital now at 52.33.

Reflecting on the efficiency of the workforce at the company, SM Energy Company [SM] managed to generate an average of -$1,520,107 per employee. Receivables Turnover for the company is 6.49 with a Total Asset Turnover recorded at a value of 0.20.SM Energy Company’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.30 and a Current Ratio set at 0.30.

Earnings analysis for SM Energy Company [SM]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SM. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for SM Energy Company go to 10.00%.

Insider trade positions for SM Energy Company [SM]

There are presently around $1,805 million, or 87.90% of SM stock, in the hands of institutional investors. The top three institutional holders of SM stocks are: BLACKROCK INC. with ownership of 17,672,147, which is approximately 6.142% of the company’s market cap and around 1.40% of the total institutional ownership; VANGUARD GROUP INC, holding 9,821,683 shares of the stock with an approximate value of $187.4 million in SM stocks shares; and STATE STREET CORP, currently with $160.75 million in SM stock with ownership of nearly 34.531% of the company’s market capitalization.

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Positions in SM Energy Company stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 86 institutional holders increased their position in SM Energy Company [NYSE:SM] by around 21,206,991 shares. Additionally, 95 investors decreased positions by around 12,984,726 shares, while 28 investors held positions by with 60,392,527 shares. The mentioned changes placed institutional holdings at 94,584,244 shares, according to the latest SEC report filing. SM stock had 34 new institutional investments in for a total of 2,460,190 shares, while 25 institutional investors sold positions of 2,047,240 shares during the same period.

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