Barclays Issues Pessimistic Forecast for Devon Energy (NYSE:DVN) Stock Price

Key Points

• Barclays cut its Devon Energy price target from $60 to $57 but maintained an “overweight” rating; the new target implies about 32.8% upside from the cited share price of $42.92.
• Analyst sentiment remains broadly positive: Devon has a “Moderate Buy” consensus rating and an average price target of $60.61.
• Devon beat third-quarter earnings expectations, reporting adjusted EPS of $1.42 versus $1.33 expected, with revenue of $6.86 billion and 66.5% year-over-year growth.

Devon Energy (NYSE:DVN - Get Free Report) had its target price lowered by equities researchers at Barclays from $60.00 to $57.00 in a report issued on Friday, Benzinga reports. The brokerage presently has an "overweight" rating on the energy company's stock. Barclays's price target would indicate a potential upside of 32.79% from the company's current price.

Other equities analysts have also issued reports about the company. Truist Financial reduced their price objective on Devon Energy from $65.00 to $61.00 and set a "buy" rating on the stock in a research note on Wednesday, October 7th. Citigroup increased their target price on shares of Devon Energy from $65.00 to $67.00 and gave the stock a "buy" rating in a research report on Monday, August 31st. BMO Capital Markets restated an "outperform" rating and issued a $67.00 price target on shares of Devon Energy in a report on Tuesday, October 6th. JPMorgan Chase & Co. lifted their price target on shares of Devon Energy from $60.00 to $65.00 and gave the company an "overweight" rating in a research report on Friday, October 2nd. Finally, Stifel Nicolaus started coverage on shares of Devon Energy in a research report on Thursday, September 10th. They set a "buy" rating and a $61.00 price target on the stock. Two investment analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $60.61.

Devon Energy Trading Up 0.1%

Devon Energy stock traded up $0.04 during midday trading on Friday, reaching $42.92. The stock had a trading volume of 6,059,506 shares, compared to its average volume of 12,821,036. Devon Energy has a twelve month low of $32.49 and a twelve month high of $52.71. The stock has a market capitalization of $47.22 billion, a PE ratio of 10.17, a price-to-earnings-growth ratio of 1.15 and a beta of 0.43. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.67 and a current ratio of 0.72. The stock's 50-day simple moving average is $48.74 and its 200 day simple moving average is $46.01.

Devon Energy (NYSE:DVN - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The energy company reported $1.42 EPS for the quarter, topping the consensus estimate of $1.33 by $0.09. The company had revenue of $6.86 billion during the quarter, compared to analyst estimates of $6.57 billion. Devon Energy had a return on equity of 14.93% and a net margin of 16.67%. The firm's revenue was up 66.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.04 earnings per share. Analysts expect that Devon Energy will post 5.49 EPS for the current year.

Insider Transactions at Devon Energy

In other news, EVP Robert Ferrall Lowe III sold 6,756 shares of the company's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $50.95, for a total value of $344,218.20. Following the completion of the sale, the executive vice president owned 72,720 shares of the company's stock, valued at $3,705,084. This represents a 8.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Clay Gaspar bought 3,913 shares of the firm's stock in a transaction dated Monday, September 14th. The stock was bought at an average cost of $51.08 per share, with a total value of $199,876.04. Following the transaction, the chief executive officer directly owned 619,152 shares of the company's stock, valued at approximately $31,626,284.16. This trade represents a 0.64% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 4.58% of the company's stock.

Hedge Funds Weigh In On Devon Energy

Institutional investors and hedge funds have recently bought and sold shares of the stock. Premier Financial Group bought a new position in Devon Energy in the second quarter worth $25,000. Financial Management Professionals Inc. boosted its stake in Devon Energy by 119.0% during the third quarter. Financial Management Professionals Inc. now owns 576 shares of the energy company's stock worth $27,000 after buying an additional 313 shares in the last quarter. JFS Wealth Advisors LLC increased its holdings in Devon Energy by 56.6% in the 2nd quarter. JFS Wealth Advisors LLC now owns 678 shares of the energy company's stock valued at $28,000 after buying an additional 245 shares during the period. Parvin Asset Management LLC bought a new stake in Devon Energy in the 2nd quarter valued at $28,000. Finally, KERR FINANCIAL PLANNING Corp bought a new stake in Devon Energy in the 2nd quarter valued at $29,000. Hedge funds and other institutional investors own 69.72% of the company's stock.

Key Stories Impacting Devon Energy

Here are the key news stories impacting Devon Energy this week:

• Positive Sentiment: Devon reported third-quarter adjusted earnings of $1.42 per share, ahead of the cited consensus estimate of $1.33 and up from $1.04 a year earlier. Revenue was $6.86 billion and rose substantially year over year, although estimates cited in reports differ. Reuters report on Devon's third-quarter results
• Positive Sentiment: Coverage says Devon generated about $2 billion in free cash flow and plans to accelerate share repurchases. The company also raised expected merger synergies, potentially strengthening the case for future cash returns and cost savings. Report on Devon's free cash flow and buybacks
• Positive Sentiment: Devon declared a quarterly dividend of $0.32 per share, equivalent to $1.28 annualized, with payment scheduled for December 30.
• Neutral Sentiment: Activist shareholders are renewing calls for Devon to sell itself. TOMS Capital Investment Management said it is disappointed with the decision not to pursue an asset sale but remains willing to engage with interested acquirers. A potential transaction could attract investor interest, but no deal is announced and the campaign adds pressure on management and the board. Article on activist shareholders' calls for Devon to sell itself

Devon Energy Company Profile

Devon Energy Corporation NYSE: DVN is an independent energy company engaged primarily in the exploration, development and production of oil, natural gas and natural gas liquids. The company focuses on onshore operations in the United States and markets the hydrocarbons produced from its assets to customers across the energy sector.

Devon's portfolio has historically included major U.S. resource plays such as the Delaware Basin in the Permian Basin, the Eagle Ford, the Anadarko Basin, the Williston Basin and the Powder River Basin.

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