Devon Energy (NYSE:DVN) Stock Gets Price Target Trim from Morgan Stanley

Key Points

• Morgan Stanley lowered its Devon Energy price target from $65 to $64 but maintained an Overweight rating; the revised target implies 51% upside from the prior close.
• Analyst sentiment remains broadly positive: Devon has a consensus “Moderate Buy” rating and an average price target of $60.49, despite some firms trimming targets.
• Devon beat quarterly estimates, reporting EPS of $1.42 versus $1.33 expected and revenue of $6.86 billion versus $6.57 billion; revenue grew 66.5% year over year.

Devon Energy (NYSE:DVN - Get Free Report) had its price target reduced by research analysts at Morgan Stanley from $65.00 to $64.00 in a research note issued to investors on Monday, Benzinga reports. The brokerage presently has an "overweight" rating on the energy company's stock. Morgan Stanley's price target indicates a potential upside of 51.00% from the company's previous close.

Several other equities research analysts have also recently commented on the company. Wells Fargo & Company lowered their target price on Devon Energy from $65.00 to $64.00 and set an "overweight" rating for the company in a research note on Monday, September 28th. Susquehanna cut their price target on Devon Energy from $63.00 to $60.00 and set a "positive" rating on the stock in a research note on Monday. Truist Financial raised their price target on Devon Energy from $61.00 to $62.00 and gave the company a "buy" rating in a report on Monday. Mizuho cut their target price on shares of Devon Energy from $68.00 to $65.00 and set an "outperform" rating on the stock in a research report on Friday, October 16th. Finally, Scotiabank began coverage on shares of Devon Energy in a research note on Wednesday, October 14th. They issued a "sector outperform" rating and a $61.00 target price on the stock. Two investment analysts have rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, Devon Energy presently has a consensus rating of "Moderate Buy" and a consensus target price of $60.49.

Devon Energy Price Performance

Shares of DVN stock traded up $0.17 during trading hours on Monday, reaching $42.38. 4,999,695 shares of the company were exchanged, compared to its average volume of 12,852,606. Devon Energy has a fifty-two week low of $33.34 and a fifty-two week high of $52.71. The stock's fifty day moving average is $48.64 and its two-hundred day moving average is $46.04. The company has a market cap of $46.62 billion, a price-to-earnings ratio of 10.59, a P/E/G ratio of 1.10 and a beta of 0.43. The company has a debt-to-equity ratio of 0.23, a current ratio of 0.70 and a quick ratio of 0.65.

Devon Energy (NYSE:DVN - Get Free Report) last issued its quarterly earnings results on Thursday, November 5th. The energy company reported $1.42 earnings per share for the quarter, beating analysts' consensus estimates of $1.33 by $0.09. Devon Energy had a net margin of 16.22% and a return on equity of 14.86%. The business had revenue of $6.86 billion during the quarter, compared to analyst estimates of $6.57 billion. During the same quarter last year, the business posted $1.04 earnings per share. Devon Energy's revenue for the quarter was up 66.5% compared to the same quarter last year. Sell-side analysts forecast that Devon Energy will post 5.49 earnings per share for the current fiscal year.

Insider Buying and Selling at Devon Energy

In other Devon Energy news, CEO Clay M. Gaspar acquired 3,913 shares of the company's stock in a transaction that occurred on Monday, September 14th. The shares were acquired at an average price of $51.08 per share, with a total value of $199,876.04. Following the purchase, the chief executive officer owned 619,152 shares of the company's stock, valued at $31,626,284.16. This represents a 0.64% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Robert Ferrall Lowe III sold 6,756 shares of Devon Energy 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 transaction, the executive vice president owned 72,720 shares in the company, valued at approximately $3,705,084. This represents a 8.50% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 4.58% of the stock is owned by insiders.

Institutional Investors Weigh In On Devon Energy

A number of hedge funds have recently modified their holdings of DVN. Optas LLC purchased a new position in Devon Energy during the third quarter valued at $217,000. Traub Capital Management LLC bought a new stake in shares of Devon Energy during the 3rd quarter valued at $221,000. Ibex Wealth Advisors purchased a new stake in shares of Devon Energy in the 3rd quarter worth about $515,000. Allworth Financial LP grew its position in shares of Devon Energy by 2.6% in the 3rd quarter. Allworth Financial LP now owns 30,448 shares of the energy company's stock worth $1,402,000 after buying an additional 786 shares during the period. Finally, Fisher Asset Management LLC grew its position in shares of Devon Energy by 7.2% in the 3rd quarter. Fisher Asset Management LLC now owns 56,976 shares of the energy company's stock worth $2,623,000 after buying an additional 3,847 shares during the period. Institutional investors and hedge funds own 69.72% of the company's stock.

Devon Energy News Roundup

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

• Positive Sentiment: Devon reported third-quarter net earnings of $1.0 billion, or $0.88 per diluted share, and highlighted strong cash flow and portfolio changes. Its earnings call also pointed to stronger cash returns, providing potential support for investors. Read More. Read More.
• Positive Sentiment: Devon completed a $617.12 million share repurchase tranche, which can boost per-share value and signals capital returned to shareholders. Read More.
• Positive Sentiment: Truist raised its price target to $62 and maintained a Buy rating, indicating continued analyst optimism. Stifel Nicolaus and Scotiabank also issued Buy ratings. Read More. Read More. Read More.
• Neutral Sentiment: Susquehanna cut its target to $60 but kept a positive rating. The lower target tempers optimism, though the firm remains constructive. Read More.
• Negative Sentiment: Recent coverage describes a sharp pullback in Devon shares, and one earnings analysis noted lower earnings per share despite higher revenue and net income. That contrast may keep investors focused on valuation and the durability of results. Read More.
• Negative Sentiment: Barclays trimmed its price target, adding to near-term caution; the available report details do not specify the revised target or rating. Read More.

Devon Energy Company Profile

Devon Energy Corporation is an independent energy company focused on exploring for and producing oil, natural gas and natural gas liquids. Its activities include developing and operating producing properties and managing the infrastructure needed to bring its products to market.

Founded in 1971, Devon is headquartered in Oklahoma City. Its operations are concentrated in U.S. onshore basins, including the Delaware Basin, Eagle Ford, Anadarko, Williston and Powder River basins.

The company's portfolio has evolved through acquisitions and asset sales over its history.

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