What 4 Analyst Ratings Have To Say About SM Energy

In the preceding three months, 4 analysts have released ratings for SM Energy SM, presenting a wide array of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $45.0, along with a high estimate of $51.00 and a low estimate of $40.00. Highlighting a 5.76% decrease, the current average has fallen from the previous average price target of $47.75.

Deciphering Analyst Ratings: An In-Depth Analysis

The perception of SM Energy by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to SM Energy. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of SM Energy compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for SM Energy's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Capture valuable insights into SM Energy's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on SM Energy analyst ratings.

All You Need to Know About SM Energy

SM Energy Co is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil and condensate, natural gas, and natural gas liquids. Operating primarily out of the United States, the company actively participates in joint ventures, prospects/leaseholds, and drill-to-earn opportunities. The majority of the company's revenue is derived from some of the United States' premier drilling locations. Drilling location interests have been traditionally obtained through oil and gas leases from third parties. SM Energy relies on its fleet of geologists, geophysicists, landmen, and engineers to help extract the full potential out of all properties held.

Unraveling the Financial Story of SM Energy

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining SM Energy's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -22.7% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: SM Energy's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 34.76%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 6.63%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): SM Energy's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.68%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.46.

The Basics of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.