JP Morgan has recently reduced SM Energy Co (SM) stock to Neutral rating, as announced on December 5, 2024, according to Finviz. Earlier, on October 15, 2024, TD Cowen had raised the stock from a Hold to Buy, setting a price target of $60 for SM stock. Tudor, Pickering, Holt & Co. also raised Buy rating. Additionally, Truist initiated Hold rating on June 25, 2024, with a target price of $51. Stephens analysts, in their report published on June 21, 2024, also initiated Overweight rating and set a price target of $63 for SM Energy Co’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
SM Energy Co (SM) Stock Trading Recap
On Tuesday, SM Energy Co (SM) stock saw a decline, ending the day at $23.26 which represents a decrease of $-0.34 or -1.44% from the prior close of $23.60. The stock opened at $23.1 and touched a low of $22.73 during the day, reaching a high of $23.42. The volume of shares traded was 1.67 million falling short of the average volume of 2.50 million.
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SM Stock Performance and Moving Averages
In recent trading, SM Energy Co (SM) stock price has shown some volatility, fluctuating 1.66% over the last five trades and -20.88% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -45.54%, and it has plunged by -41.38% in the previous three months. Currently, SM is trading at -0.61%, -17.14%, and -39.94% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, SM, a Energy sector stock, is trading -55.22% below its 52-week high but remains 18.25% above its 52-week low. The Average True Range (ATR) (14 days) of 1.59 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
SM Energy Co’s Profitability and Valuation Ratios
SM Energy Co’s profitability metrics reveal financial health. The company currently boasts an operating margin of 38.13% and a profit margin of 28.63%, with a gross margin of -45.54%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, SM Energy Co’s market capitalization stands at $2.66 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 3.49, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 4.13. Additionally, the Price-to-Sales Ratio is 0.99, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 0.63, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 1.81% of SM Energy Co (SM)’s shares, while financial institutions hold 100.81%.
Notable insider trades include Lytle Patrick A, VP – Chief Accounting Officer at SM Energy Co (SM), who sold 6,059 shares on Aug 26 ’24, at $47.45 each, totaling $0.29 million. On Aug 16 ’24, Lebeck James Barker, EVP & General Counsel, sold 4,487 shares for $45.43 each, amounting to $0.20 million. Additionally, on Aug 16 ’24, ROBESON ROSE M sold 10,000 shares at $45.50 each, generating $0.46 million.
