SM Should I Buy
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SM Energy Co is not a strong buy for a beginner, long-term investor at this time. While hedge funds are showing strong buying interest, the company's financial performance is declining, and analysts have lowered price targets due to oversupply concerns in the oil market. The technical indicators and options data do not suggest a compelling entry point for long-term investment.
The MACD is above 0 and positively contracting, indicating mild bullish momentum. RSI is neutral at 59.752, and moving averages are converging, showing no clear trend. The stock is trading near resistance levels (R1: 21.579), which could limit upside potential in the short term.
Hedge funds are significantly increasing their buying activity, with a 293900.00% increase in the last quarter. The long-term demand story for natural gas and electrification remains bullish.
Analysts have lowered price targets due to oversupply concerns in the oil market and reduced activity pace. Financial performance in Q3 2025 showed a significant decline in net income (-35.52% YoY) and EPS (-35.41% YoY). No recent news or congress trading data to support positive sentiment.
In Q3 2025, revenue increased by 26.10% YoY to $811.59M, but net income dropped by 35.52% YoY to $155.09M. EPS also declined by 35.41% YoY to 1.35, and gross margin fell by 30.21% to 31.69.
Susquehanna lowered the price target to $19 from $21, citing oversupply concerns in the oil market. Mizuho reduced the price target to $34 from $38, citing a modestly reduced activity pace. Both analysts maintain neutral or outperform ratings but highlight challenges in the current market environment.
