SM Energy stock hits 52-week low at $26.64 amid market challenges

Published 03/04/2025, 15:36
SM Energy stock hits 52-week low at $26.64 amid market challenges

In a turbulent market environment, SM Energy Co. (NYSE:SM) has seen its stock price touch a 52-week low, reaching $26.64. According to InvestingPro analysis, the company appears undervalued, with analysts setting price targets ranging from $33 to $62. The energy sector has faced significant headwinds, and SM Energy, a company engaged in the exploration and production of petroleum and natural gas, has not been immune to these challenges. Over the past year, the stock has experienced a substantial decline, with the 1-year change data reflecting a decrease of nearly 49.92%. Despite these challenges, the company maintains a healthy 2.62% dividend yield and trades at an attractive P/E ratio of 3.93, with a market capitalization of $3 billion. This downturn highlights the volatility within the energy market and the impact of broader economic factors influencing investor sentiment towards companies like SM Energy.For deeper insights into SM Energy’s valuation and 12 additional ProTips, visit InvestingPro, where you’ll find comprehensive analysis and the detailed Pro Research Report.

In other recent news, SM Energy reported its fourth-quarter 2024 results, which led Raymond (NSE:RYMD) James to adjust its price target for the company from $59 to $40 while maintaining an Outperform rating. This adjustment reflects the recent decline in oil prices and the company’s performance. SM Energy’s first-quarter 2025 production is projected to be 195 thousand barrels of oil equivalent per day, a decrease of approximately 7% from the previous quarter, attributed to operational changes in South Texas. The company expects its capital expenditure for the first quarter to be around $428 million, aligning with its guidance. For the full year 2025, SM Energy is anticipated to produce about 208 MBoe/d, with capital expenditures near $1.3 billion. Raymond James highlighted SM Energy’s free cash flow yield at approximately 10% and an enterprise value to EBITDA multiple of 2.7 times. Additionally, SM Energy announced the upcoming retirement of Dr. Stephen R. Brand from its Board of Directors, effective May 22, 2025, following the annual stockholders meeting. Dr. Brand’s departure is a planned transition with no immediate impact on the company’s strategic direction.

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