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

Key Points

• Devon Energy has a consensus analyst rating of “Moderate Buy”, with 22 buy ratings, 4 strong buy ratings, and 5 hold ratings. The average 1-year price target among analysts is about $57.85.
• The company recently raised its quarterly dividend to $0.32 per share from $0.24, equal to an annualized payout of $1.28 and a yield of 2.9%. The dividend reflects a payout ratio of 26.74%.
• Devon reported mixed quarterly results, missing EPS and revenue estimates, while insiders sold shares in recent transactions. Institutional investors still hold a large stake, owning 69.72% of the company’s stock.

Devon Energy Corporation (NYSE:DVN - Get Free Report) has been given a consensus rating of "Moderate Buy" by the thirty-one analysts that are presently covering the company, Marketbeat reports. Five equities research analysts have rated the stock with a hold rating, twenty-two have issued a buy rating and four have issued a strong buy rating on the company. The average 1 year price objective among analysts that have updated their coverage on the stock in the last year is $57.8519.

A number of research firms recently commented on DVN. Mizuho raised their price target on Devon Energy from $62.00 to $68.00 and gave the company an "outperform" rating in a report on Wednesday. Wolfe Research increased their price objective on shares of Devon Energy from $64.00 to $65.00 and gave the company an "outperform" rating in a research report on Monday, April 6th. UBS Group cut their target price on shares of Devon Energy from $61.00 to $60.00 and set a "buy" rating for the company in a research note on Tuesday, April 14th. Evercore initiated coverage on shares of Devon Energy in a report on Friday, May 15th. They set an "in-line" rating and a $54.00 target price for the company. Finally, Raymond James Financial upgraded shares of Devon Energy from an "outperform" rating to a "strong-buy" rating and set a $72.00 price target on the stock in a research note on Tuesday, May 5th.

Insider Activity

In related news, EVP Jeffrey L. Ritenour sold 70,029 shares of the business'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 completion of the sale, the executive vice president directly owned 428,452 shares in the company, valued at approximately $19,991,570.32. The trade was a 14.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, SVP Adam M. Vela sold 24,342 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $47.21, for a total value of $1,149,185.82. Following the sale, the senior vice president directly owned 130,540 shares in the company, valued at $6,162,793.40. This represents a 15.72% decrease in their position. The SEC filing for this sale provides additional information. 0.71% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in shares of Devon Energy during the 4th quarter worth approximately $25,000. Accredited Wealth Management LLC increased its stake in Devon Energy by 61.6% in the third quarter. Accredited Wealth Management LLC now owns 808 shares of the energy company's stock valued at $28,000 after acquiring an additional 308 shares during the last quarter. Ameriflex Group Inc. raised its position in Devon Energy by 702.0% during the third quarter. Ameriflex Group Inc. now owns 802 shares of the energy company's stock valued at $28,000 after purchasing an additional 702 shares in the last quarter. MV Capital Management Inc. bought a new stake in Devon Energy during the fourth quarter worth $29,000. Finally, Garton & Associates Financial Advisors LLC bought a new stake in Devon Energy during the fourth quarter worth $29,000. Institutional investors and hedge funds own 69.72% of the company's stock.

Devon Energy Trading Down 0.3%

NYSE:DVN opened at $44.14 on Friday. Devon Energy has a twelve month low of $30.24 and a twelve month 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. The business has a 50 day moving average price of $48.03 and a two-hundred day moving average price of $42.36. The company has a market cap of $27.43 billion, a P/E ratio of 12.30 and a beta of 0.43.

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 for the quarter, missing the consensus estimate of $1.06 by ($0.02). Devon Energy had a return on equity of 15.22% and a net margin of 13.71%.The company had revenue of $3.81 billion for the quarter, compared to analyst estimates of $4.34 billion. During the same period last year, the firm earned $0.82 EPS. The firm's revenue for the quarter was down 14.5% compared to the same quarter last year. As a group, analysts expect that Devon Energy will post 4.21 EPS for the current fiscal year.

Devon Energy Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be issued a $0.32 dividend. The ex-dividend date of this dividend is Monday, June 15th. This represents a $1.28 dividend on an annualized basis and a yield of 2.9%. This is a positive change from Devon Energy's previous quarterly dividend of $0.24. Devon Energy's payout ratio is currently 26.74%.

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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