Devon Energy Corporation (NYSE:DVN) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts remain broadly positive on Devon Energy, with 30 covering firms giving it an average rating of “Moderate Buy” and a consensus 12-month price target of $59.32.
• Recent analyst updates were mixed but mostly favorable, including price-target raises from Barclays, Argus, and Wells Fargo, while Goldman Sachs and UBS trimmed targets but kept buy ratings.
• Devon Energy raised its quarterly dividend to $0.32 per share from $0.24, putting the stock on a 2.9% yield; however, its latest earnings missed estimates on both EPS and revenue.

Shares of Devon Energy Corporation (NYSE:DVN - Get Free Report) have earned an average recommendation of "Moderate Buy" from the thirty analysts that are currently covering the firm, MarketBeat.com reports. Five equities research analysts have rated the stock with a hold recommendation, twenty-three have issued a buy recommendation and two have assigned a strong buy recommendation to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $59.32.

DVN has been the topic of a number of research reports. Barclays increased their price objective on shares of Devon Energy from $54.00 to $62.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 26th. Argus boosted their target price on shares of Devon Energy from $51.00 to $53.00 and gave the company a "buy" rating in a research report on Wednesday, June 10th. Wells Fargo & Company upped their price target on shares of Devon Energy from $66.00 to $68.00 and gave the company an "overweight" rating in a report on Monday, May 18th. The Goldman Sachs Group cut their price target on Devon Energy from $54.00 to $53.00 and set a "buy" rating on the stock in a research report on Tuesday, June 30th. Finally, UBS Group reduced their price objective on Devon Energy from $58.00 to $54.00 and set a "buy" rating for the company in a research note on Wednesday.

Devon Energy Price Performance

Shares of NYSE DVN opened at $43.84 on Friday. The business's 50 day moving average price is $44.37 and its 200 day moving average price is $44.07. The firm has a market cap of $27.25 billion, a P/E ratio of 12.21 and a beta of 0.38. Devon Energy has a 52 week low of $31.47 and a 52 week high of $52.71. The company has a quick ratio of 0.94, a current ratio of 1.01 and a debt-to-equity ratio of 0.48.

Devon Energy (NYSE:DVN - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The energy company reported $1.04 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.06 by ($0.02). Devon Energy had a return on equity of 15.22% and a net margin of 13.71%.The business had revenue of $3.81 billion for the quarter, compared to analysts' expectations of $4.34 billion. During the same period in the prior year, the business posted $0.82 earnings per share. The business's quarterly revenue was down 14.5% compared to the same quarter last year. On average, sell-side analysts expect that Devon Energy will post 4.69 earnings per share for the current year.

Devon Energy Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were paid a $0.32 dividend. The ex-dividend date was Monday, June 15th. This is a positive change from Devon Energy's previous quarterly dividend of $0.24. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.9%. Devon Energy's dividend payout ratio (DPR) is currently 35.65%.

Insider Buying and Selling

In other Devon Energy news, EVP Jeffrey L. Ritenour sold 70,029 shares of the company's stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $46.66, for a total value of $3,267,553.14. Following the sale, the executive vice president owned 428,452 shares in the company, valued at approximately $19,991,570.32. This represents a 14.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, SVP Andrea Alexander sold 18,000 shares of the firm's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $46.74, for a total transaction of $841,320.00. Following the sale, the senior vice president directly owned 138,529 shares in the company, valued at $6,474,845.46. The trade was a 11.50% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 112,371 shares of company stock valued at $5,258,059 over the last ninety days. Company insiders own 4.58% of the company's stock.

Institutional Trading of Devon Energy

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DVN. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in shares of Devon Energy during the 4th quarter worth about $25,000. JFS Wealth Advisors LLC increased its stake in shares of 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 purchasing an additional 245 shares in the last quarter. MV Capital Management Inc. purchased a new position in shares of Devon Energy in the 4th quarter valued at about $29,000. KERR FINANCIAL PLANNING Corp purchased a new position in shares of Devon Energy in the 2nd quarter valued at about $29,000. Finally, Garton & Associates Financial Advisors LLC acquired a new position in Devon Energy in the 4th quarter worth about $29,000. Institutional investors and hedge funds own 69.72% of the company's stock.

Devon Energy Company Profile

Devon Energy Corporation NYSE: DVN is an independent oil and gas exploration and production company headquartered in Oklahoma City, Oklahoma. The company focuses on the exploration, development, production and marketing of hydrocarbons, including crude oil, natural gas liquids (NGLs) and natural gas. Devon operates as an upstream energy company that acquires, evaluates and develops onshore resource plays using a combination of drilling, completion and production optimization techniques.

Core business activities include identifying and developing energy reserves, operating well programs and managing reservoir performance to generate production and cash flow.

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