Devon Energy (NYSE:DVN) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded Devon Energy from “buy” to “hold,” even as the broader analyst view remains positive. MarketBeat says the stock still carries a consensus rating of “Moderate Buy” with an average price target of $58.44.
• Recent quarterly results were weaker than expected: Devon reported EPS of $1.04 versus consensus of $1.06 and revenue of $3.81 billion versus expectations of $4.34 billion. Revenue also fell 14.5% year over year.
• Shares were trading at $42.21, below the 50-day moving average of $46.38, while insiders have been selling stock recently. Over the last 90 days, insiders sold 112,371 shares valued at $5.26 million, and institutions still own about 69.72% of the company.

Devon Energy (NYSE:DVN - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Sunday.

Several other research firms have also recently issued reports on DVN. JPMorgan Chase & Co. assumed coverage on Devon Energy in a research note on Monday, June 8th. They set an "overweight" rating and a $62.00 target price on the stock. Royal Bank Of Canada lifted their price target on shares of Devon Energy from $46.00 to $59.00 and gave the company a "sector perform" rating in a report on Wednesday, April 8th. Argus boosted their price objective 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. Scotiabank upped their price objective on shares of Devon Energy from $41.00 to $46.00 and gave the stock a "sector perform" rating in a report on Wednesday, April 22nd. Finally, Capital One Financial dropped their target price on shares of Devon Energy from $63.00 to $61.00 and set an "overweight" rating for the company in a research report on Tuesday, June 2nd. Two analysts have rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $58.44.

Devon Energy Stock Performance

Devon Energy stock opened at $42.21 on Friday. The company has a current ratio of 1.01, a quick ratio of 0.94 and a debt-to-equity ratio of 0.48. The firm has a 50-day moving average of $46.38 and a 200-day moving average of $43.31. The firm has a market cap of $26.23 billion, a P/E ratio of 11.76 and a beta of 0.37. Devon Energy has a 1-year low of $31.45 and a 1-year high of $52.71.

Devon Energy (NYSE:DVN - Get Free Report) last announced 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). The business had revenue of $3.81 billion for the quarter, compared to analysts' expectations of $4.34 billion. Devon Energy had a net margin of 13.71% and a return on equity of 15.22%. The firm's revenue for the quarter was down 14.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.82 EPS. Sell-side analysts expect that Devon Energy will post 4.97 EPS for the current year.

Insider Buying and Selling at Devon Energy

In other news, SVP Adam M. Vela sold 24,342 shares of the business's stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $47.21, for a total transaction of $1,149,185.82. Following the sale, the senior vice president owned 130,540 shares in the company, valued at approximately $6,162,793.40. The trade was a 15.72% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Andrea Alexander sold 18,000 shares of the company's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $46.74, for a total transaction of $841,320.00. Following the completion of the sale, the senior vice president directly owned 138,529 shares in the company, valued at $6,474,845.46. This represents a 11.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 112,371 shares of company stock valued at $5,258,059. 4.58% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Devon Energy

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Wedge Capital Management L L P NC purchased a new position in Devon Energy during the 4th quarter valued at $9,931,000. Investors Research Corp increased its stake in Devon Energy by 13,787.5% in the fourth quarter. Investors Research Corp now owns 27,775 shares of the energy company's stock worth $1,017,000 after purchasing an additional 27,575 shares during the period. Philip James Wealth Mangement LLC increased its stake in Devon Energy by 43.8% in the fourth quarter. Philip James Wealth Mangement LLC now owns 161,368 shares of the energy company's stock worth $5,911,000 after purchasing an additional 49,115 shares during the period. Morningstar Investment Management LLC bought a new stake in shares of Devon Energy during the fourth quarter worth $2,089,000. Finally, Victory Capital Management Inc. lifted its position in shares of Devon Energy by 5.0% during the third quarter. Victory Capital Management Inc. now owns 11,845,958 shares of the energy company's stock worth $415,319,000 after purchasing an additional 560,652 shares during the last quarter. Institutional investors own 69.72% of the company's stock.

About Devon Energy

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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