SM Energy Company (SM) Solid Choice From Multiple Angles?

EVP – Operations Vogel Herbert S acquired 3,000 shares in SM Energy Company (NYSE:SM) for $35,037 in transaction occurred on 2017/06/08. After making this transaction, the EVP – Operations owns a direct stake of 49,800 shares, worth $680,769, as per the last closing price. On 2017/06/08 Ottoson Javan D, President & CEO at SM, purchased 2,000 shares at an average price of $16.44 per share. The new stake is valued at $2,819,332.

Separately, it had been reported that some other SM insiders also took part of the insider trading activity. EVP – Operations, Vogel Herbert S had invested in 1,000 shares for $32,037 through a trade on 2017/03/13. Following this activity, the insider holds 21,840 shares worth $622,479 as of recent close. Wall Street’s most bullish SM Energy Company (NYSE:SM) analysts are predicting the share price to blow past $44 per share during the next 12 months. The current median share price forecast by them is $34, suggesting that the stock could increase 74.99% in that time frame. The average price target of $34.58 calls for a nearly 77.97% increase in the stock price.

SM Energy Company (SM) trading activity significantly improved as the volume at ready counter increased to 3,122,331 shares versus 2,276,410 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,984,790 shares. The share price dropped -5.59% in recent trade and currently has a stock-market value of $2.24B. The shares finished at $19.43, after trading as low as $18.59 earlier in the session. It hit an intraday high Thursday at $19.95. The stock is now 20.61% above against its bear-market low of $16.11 on April 02, 2018. It has retreated -73.75% since it’s 52-week high of $33.76 reached in October. Now the market price is down -11.16% on the year and down -12% YTD.

SM’s 50 day simple moving average (SMA 50) price is $25.76 and its 200-day simple moving average (SMA 200) price is $24.89. The company’s stock currently has a total float of 103.99M shares. Its weekly volatility is hovering around 4.47% and felt 5.24% volatility in price over a month. On the upside, the share price will test short term resistance at around $20.06. On a downside, the stock is likely to find some support, which begins at $18.7. The failure to get near-term support could push it to $17.96.

It had seen a new analyst call from MKM Partners, which initiated the stock at Buy on December 06. Analysts at Scotia Howard Weil, shed their negative views on September 27 by lifting it fromSector Perform to Sector Outperform. The stock lost favor of B. Riley FBR, Inc. analysts who expressed their lack of confidence in it using a downgrade from Buy to Neutral on July 12.

When looking at valuations, SM Energy Company (SM) has a pricey P/E of 20.56x as compared to industry average of 16.71x. Moreover, it trades for 10.93 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.84x price/book and 1.41x price/sales. Compared to others, SM Energy Company is in a different league with regards to profitability, having net margins of 10.9%. To put some perspective around this, the industry’s average net margin is 6.89%. SM’s ROE is 6.6%, which is also considerably worse than the industry’s ROE of 6.89%. It’s also not liquid in the near term, with a current ratio of 0.6. The stock has a debt/capital of 0.

Shares of SM Energy Company (SM) have dropped -16.9% since the company’s last earnings report. Over the past 12 fiscal quarters, SM Energy Company (NYSE:SM) has topped consensus earnings estimates in 8 quarters (66%), missed earnings in 2 quarters (16%), whereas at 2 occasion EPS met analyst expectations. SM last reported earnings on November 01, 2018 when it released Sep-18 results that receded expectations. The company raked in -$0.01 per share, -100.01% change on the same period last year. That was worse than consensus for $0.16. Revenue for the recent quarter stood at $459.37 million, up 56% on last year and above the $422.49 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $361.15 million to $493.8 million, which should be compared with $404.91 million generated last year. EPS is seen in a range of -$1.80E-01 to $0.15, against the -$0.01 reported a year ago.