Key Takeaways From SM Energy Analyst Ratings

During the last three months, 9 analysts shared their evaluations of SM Energy SM, revealing diverse outlooks from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $57.67, a high estimate of $65.00, and a low estimate of $51.00. This current average has increased by 13.35% from the previous average price target of $50.88.

Decoding Analyst Ratings: A Detailed Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive SM Energy. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to SM Energy. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of SM Energy's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on SM Energy analyst ratings.

Delving into SM Energy's Background

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.

Understanding the Numbers: SM Energy's Finances

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: SM Energy's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -1.96%. This indicates a decrease in the company's top-line earnings. When compared to others in the Energy sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: SM Energy's net margin is impressive, surpassing industry averages. With a net margin of 23.45%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): SM Energy's ROE excels beyond industry benchmarks, reaching 3.59%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): SM Energy's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.05% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: SM Energy's debt-to-equity ratio is below the industry average. With a ratio of 0.43, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Core of Analyst Ratings: What Every Investor Should Know

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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