KeyCorp Lowers SM Energy’s FY2025 Earnings Forecast to $5.46

Analysts at KeyCorp have revised their earnings per share (EPS) estimates for SM Energy Company, projecting a decline for the fiscal year 2025. In a research note released on January 15, 2024, KeyCorp analyst T. Rezvan lowered the forecast from $5.52 to $5.46 per share. Despite this adjustment, KeyCorp maintains an “Overweight” rating on the stock with a target price set at $28.00.

The downward revision comes as the consensus estimate for SM Energy’s current full-year earnings stands at $8.10 per share. Other analysts have also adjusted their predictions for the energy company. The Royal Bank of Canada recently decreased its price target from $35.00 to $29.00, assigning a “sector perform” rating in a note dated January 13, 2024. Similarly, Susquehanna reduced its target to $27.00, opting for a “neutral” rating in its report released on October 20, 2023.

Zacks Research has changed its stance on SM Energy, upgrading the stock from a “strong sell” to a “hold” rating on November 3, 2023. Weiss Ratings reaffirmed a “hold (c-)” rating on October 8, 2023, while Mizuho set a target price of $34.00 in a report published on January 9, 2024. Current ratings indicate one analyst has given a Strong Buy rating, three have rated it as Buy, six have assigned a Hold rating, and one has issued a Sell rating. Overall, MarketBeat data shows a consensus rating of “Hold” and an average target price of $34.00.

SM Energy’s Price Performance

As of January 15, 2024, shares of SM Energy opened at $18.22. The company has a market capitalization of $2.09 billion, a price-to-earnings (P/E) ratio of 2.87, and a beta of 1.07. SM Energy’s financial ratios reveal a debt-to-equity ratio of 0.49, a quick ratio of 0.56, and a current ratio also at 0.56.

The stock has experienced a twelve-month low of $17.45 and a high of $44.34. Its 50-day moving average price stands at $18.87, while the 200-day moving average price is $23.06. The company last reported its quarterly earnings on November 3, 2023, revealing an EPS of $1.33 for the quarter, surpassing analysts’ expectations of $1.25 by $0.08. Although this was a decrease from the previous year’s EPS of $1.62, the firm saw a year-over-year revenue increase of 26.1%, totaling $811.59 million, albeit below analyst expectations of $838.24 million.

Dividend Declaration

In addition to its earnings report, SM Energy announced a quarterly dividend of $0.20 per share, which was paid on January 9, 2024. The ex-dividend date was December 26, 2023. This dividend represents an annualized payout of $0.80, yielding 4.4%. The company maintains a dividend payout ratio of 12.62%.

Institutional Trading Activity

Recent trading activity has seen institutional investors adjusting their positions in SM Energy. First Horizon Corp acquired a new stake valued at $30,000 in the third quarter. Additionally, Jones Financial Companies Lllp increased its holdings by 316.7% during the same period, now owning 1,200 shares valued at $33,000 after acquiring an additional 912 shares. Johnson Financial Group Inc. also entered the market with a new stake valued at $31,000.

Hantz Financial Services Inc. raised its stake by 220.6%, now holding 1,430 shares valued at $36,000 after buying 984 additional shares in the last quarter. Versant Capital Management Inc. increased its holdings by 201.0%, owning 1,776 shares worth $44,000 after acquiring 1,186 shares.

Overall, institutional investors and hedge funds own approximately 94.56% of SM Energy’s stock.

Company Overview

SM Energy Company (NYSE: SM) is an independent energy firm involved in the exploration, development, and production of crude oil, natural gas, and natural gas liquids across the United States. The company focuses on unconventional onshore basins, employing advanced drilling and completion techniques to maximize resource recovery. Core asset areas include prominent basins such as the Permian, Eagle Ford, and the Rocky Mountain region.