SM Energy Company (SM): From Top to Bottom

SM Energy Company (SM) is an interesting player in the Basic Materials space, with a focus on Independent Oil & Gas. The stock has been active on the tape, currently trading at $24.97, up from yesterday’s close by 2.38%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. SM Energy Company (SM) currently trades with a market capitalization of $2.86 Billion. That value represents a market adjusting for revenues that have been growing by 15.72 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For SM, the company currently has $9.37 Million of cash on the books. You can get a sense of how sustainable that is by a levered free cash flow of $-2.26 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $-0.33 on a per share basis this quarter. Perhaps, that suggests something about why 0.25% of the outstanding share supply is held by institutional investors.

Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, SM Energy Company recorded a 52-week high of $43.03. It is now trading 18.06% off that level. The stock is trading $30.84 its 50-day moving average by 5.87%. The stock carved out a 52-week low down at $12.86.

In recent action, SM Energy Company (SM) has made a move of -16.24% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 39.66, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 11.43% with $110.24 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of SM.

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