Devon Energy (NYSE:DVN) Issues Quarterly Earnings Results

Key Points

• Devon Energy beat quarterly expectations, reporting adjusted EPS of $1.57 versus the $1.40 consensus estimate and revenue of $7.42 billion, ahead of the $6.01 billion forecast.
• The company increased its quarterly dividend to $0.32 per share from $0.24, implying an annualized dividend of $1.28 and a 2.9% yield.
• Shares fell 1.3% to $44.01 despite analysts maintaining a generally positive outlook; Devon holds a “Moderate Buy” consensus rating with an average price target of $59.56. Several insiders sold shares during the quarter.

Devon Energy (NYSE:DVN - Get Free Report) posted its quarterly earnings results on Tuesday. The energy company reported $1.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.40 by $0.17, FiscalAI reports. The firm had revenue of $7.42 billion for the quarter, compared to analyst estimates of $6.01 billion. Devon Energy had a net margin of 13.71% and a return on equity of 15.22%.

Devon Energy Stock Down 1.3%

Shares of DVN traded down $0.56 during mid-day trading on Tuesday, reaching $44.01. The company's stock had a trading volume of 9,794,947 shares, compared to its average volume of 13,755,949. The business has a fifty day moving average of $43.58 and a 200 day moving average of $44.75. The company has a market cap of $27.34 billion, a price-to-earnings ratio of 12.26 and a beta of 0.38. Devon Energy has a 1 year low of $31.47 and a 1 year 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 Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were issued a $0.32 dividend. The ex-dividend date was Monday, June 15th. This is an increase 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 is currently 35.65%.

Insider Activity

In related news, SVP Adam M. Vela sold 24,342 shares of the stock in a transaction dated 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 completion of the sale, the senior vice president directly owned 130,540 shares of the company's stock, valued at approximately $6,162,793.40. This represents a 15.72% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Jeffrey L. Ritenour sold 70,029 shares of the firm's stock in a transaction dated 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 of the company's stock, valued at $19,991,570.32. The trade was a 14.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 112,371 shares of company stock worth $5,258,059. 4.58% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Devon Energy

A number of large investors have recently made changes to their positions in the business. Garton & Associates Financial Advisors LLC acquired a new position in Devon Energy in the 4th quarter valued at approximately $29,000. DV Equities LLC acquired a new stake in shares of Devon Energy during the 4th quarter valued at $32,000. Palisade Asset Management LLC purchased a new position in shares of Devon Energy during the 3rd quarter valued at $60,000. Los Angeles Capital Management LLC purchased a new position in shares of Devon Energy during the 4th quarter valued at $99,000. Finally, Transamerica Financial Advisors LLC increased its stake in shares of Devon Energy by 39.7% in the fourth quarter. Transamerica Financial Advisors LLC now owns 2,814 shares of the energy company's stock worth $103,000 after acquiring an additional 799 shares during the last quarter. Institutional investors and hedge funds own 69.72% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on DVN shares. The Goldman Sachs Group reduced their price objective on Devon Energy from $54.00 to $53.00 and set a "buy" rating for the company in a research note on Tuesday, June 30th. Barclays boosted their target price on Devon Energy from $54.00 to $62.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 26th. Citigroup increased their price target on Devon Energy from $60.00 to $65.00 and gave the company a "buy" rating in a research report on Wednesday, May 20th. UBS Group dropped their price target on Devon Energy from $58.00 to $54.00 and set a "buy" rating on the stock in a research note on Wednesday, July 15th. Finally, Wall Street Zen downgraded Devon Energy from a "buy" rating to a "hold" rating in a report on Sunday, June 21st. Two analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $59.56.

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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