Will Investors Now Sell SM Energy (NYSE:SM) Stock Following Today’s, Scotia Howard Weil Downgrades?


SM Energy (NYSE:SM) Receives a Downgrade

The Rating of SM Energy (NYSE:SM) shares have been cut by Scotia Howard Weil from a Sector Outperform rating to a Sector Perform rating in an analyst note issued to investors and clients on Monday, 14 December.

From a total of 20 analysts covering SM Energy (NYSE:SM) stock, 15 rate it a ”Buy”, 0 a “Sell”, and 8 a ”Hold”. This means that 65% of the ratings are positive. The highest target price is $58 while the lowest target price is $30. The mean of all analyst targets is $43.77 with a 97.59% above today’s ($22.37) stock price. SM Energy was the topic of 16 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. JP Morgan initiated shares on December 9 with “Neutral” rating. Guggenheim upgraded SM stock in a recent report from November 2 to “Buy” rating. Finally, Raymond James upgraded the stock to “Outperform” rating in a report issued on a July 29.

Approximately 1.13 million shares of stock traded hands. SM Energy Co (NYSE:SM) has declined 61.11% since May 11, 2015 and is downtrending. It has underperformed by 56.69% the S&P500.

The overall sentiment of institutions has increased to 1.1 in Q2 2015. Its up 0.06, from 1.04 in 2015Q2. The ratio increased, as 58 institutions have sold all the shares of SM Energy Co that they owned while 70 funds have taken shares off the table. 36 funds have purchased shares for the first time while 105 added to their positions. These institutions now hold 68.38 million shares or 1.23% more than the 67.55 million shares they owned in 2015Q2.

The Fund Caymus Capital Partners L.P. currently is holding shares equating to 7.74% of its total portfolio in SM Energy Co representing a total of 1.19 million shares. Another fund,Key Group Holdings (Cayman) Ltd., is holding a total of 1.74 million shares equating to 4.04% of their holdings. Additionally, Alta Advisers Ltd has a 75,760 share stake in SM Energy Co which represents 3.96% of their total portfolio. The Fund, Sir Capital Management L.P., based out of New York, has also built up a stake in the stock, which represents a total of 3.82% of their total portfolio. Finally Columbia Pacific Advisors Llc, a fund which is based in the state of Washington reported a total holdings of 79,925 shares.

SM Energy Company is an independent energy company. The company has a market cap of $1.56 billion. The Firm is engaged in the acquisition, exploration, development and production of crude oil and condensate, natural gas, and natural gas liquids in onshore North America. It has 6.72 P/E ratio.

According to Zacks Investment Research, “SM Energy Company, formerly known as St. Mary Land & Exploration Company, is an independent energy company engaged in the exploration, exploitation, development, acquisition, and production of natural gas and crude oil. The Company operates in the areas: Mid-Continent, Rocky Mountains, ArkLaTex, Permian Basin, and Gulf Coast regions which are operated out of its offices in Tulsa, Oklahoma; Billings, Montana; Shreveport, Louisiana; Midland, Texas; and Houston, Texas, respectively. SM Energy Company is based in Denver, Colorado.”