The increase in short interest for SM Energy to 10.07% of its float, significantly above its peer group average, suggests that the market sentiment towards the company has become more bearish. This could lead to increased selling pressure on the stock in the short term, especially if the bearish sentiment continues or intensifies. However, it's also important to note that high short interest can sometimes lead to a short squeeze if the stock price starts to rise, causing short sellers to cover their positions.