Devon Energy (NYSE:DVN) Price Target Raised to $66.00 at Morgan Stanley

Key Points

• Morgan Stanley raised Devon Energy’s price target from $59 to $66 and kept an overweight rating, implying about 37% upside from the prior close.
• Other analysts have also turned more positive on DVN, with several firms lifting targets and ratings; the stock now has a Moderate Buy consensus and a consensus price target of $57.30.
• Devon Energy’s latest quarter was mixed, as EPS and revenue both missed estimates, even as the company continues to draw support from institutional buying and positive headlines around a large Delaware Basin acquisition.

Devon Energy (NYSE:DVN - Get Free Report) had its price objective upped by stock analysts at Morgan Stanley from $59.00 to $66.00 in a report released on Thursday,MarketScreener reports. The brokerage currently has an "overweight" rating on the energy company's stock. Morgan Stanley's target price points to a potential upside of 37.00% from the company's previous close.

A number of other brokerages have also commented on DVN. Siebert Williams Shank boosted their price target on Devon Energy from $46.00 to $50.00 and gave the company a "buy" rating in a report on Monday, January 26th. Sanford C. Bernstein boosted their target price on Devon Energy from $42.00 to $59.00 and gave the company an "outperform" rating in a research note on Monday, April 13th. BMO Capital Markets upped their price target on Devon Energy from $60.00 to $65.00 and gave the stock an "outperform" rating in a research report on Wednesday, May 13th. Argus lifted their price objective on shares of Devon Energy from $41.00 to $51.00 and gave the company a "buy" rating in a report on Thursday, February 26th. Finally, Truist Financial began coverage on shares of Devon Energy in a research report on Tuesday, March 24th. They issued a "buy" rating and a $63.00 price objective on the stock. Four investment analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $57.30.

Devon Energy Stock Down 0.6%

NYSE:DVN opened at $48.18 on Thursday. Devon Energy has a 1 year low of $30.24 and a 1 year high of $52.71. 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 stock has a market cap of $29.94 billion, a price-to-earnings ratio of 13.45 and a beta of 0.43. The stock has a 50-day moving average price of $48.03 and a two-hundred day moving average price of $41.80.

Devon Energy (NYSE:DVN - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The energy company reported $1.04 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 analyst estimates of $4.34 billion. Devon Energy had a return on equity of 15.22% and a net margin of 13.71%.The company's revenue for the quarter was down 14.5% compared to the same quarter last year. During the same period in the prior year, the business earned $0.82 EPS. As a group, equities analysts expect that Devon Energy will post 5.25 earnings per share for the current year.

Insider Activity at Devon Energy

In related news, SVP Adam M. Vela sold 24,342 shares of the firm's stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $47.21, for a total value of $1,149,185.82. Following the completion of the transaction, the senior vice president directly owned 130,540 shares of the company's stock, valued at approximately $6,162,793.40. This trade represents a 15.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Jeffrey L. Ritenour sold 70,029 shares of the business's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $46.66, for a total transaction of $3,267,553.14. Following the transaction, the executive vice president 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. Additional details regarding this sale are available in the official SEC disclosure. 0.71% of the stock is owned by insiders.

Institutional Trading of Devon Energy

A number of large investors have recently added to or reduced their stakes in the company. Bank of America Corp DE raised its holdings in shares of Devon Energy by 3.7% in the 1st quarter. Bank of America Corp DE now owns 6,214,358 shares of the energy company's stock valued at $312,706,000 after purchasing an additional 223,665 shares during the period. Janus Henderson Group PLC grew its holdings in Devon Energy by 849.7% during the first quarter. Janus Henderson Group PLC now owns 262,096 shares of the energy company's stock worth $13,183,000 after purchasing an additional 234,498 shares during the period. Bull Harbor Capital LLC bought a new position in Devon Energy during the first quarter worth about $563,000. Ashton Thomas Securities LLC acquired a new position in Devon Energy during the first quarter worth approximately $835,000. Finally, Arkadios Wealth Advisors increased its position in Devon Energy by 21.9% during the first quarter. Arkadios Wealth Advisors now owns 144,030 shares of the energy company's stock worth $7,248,000 after buying an additional 25,915 shares during the last quarter. Institutional investors and hedge funds own 69.72% of the company's stock.

Key Headlines Impacting Devon Energy

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

• Positive Sentiment: Devon Energy completed a major $2.6 billion acquisition of 16,300 net undeveloped acres in New Mexico’s Delaware Basin, adding roughly 400 future drilling locations and extending its inventory life. Management said the deal is accretive to net asset value and can be funded with cash on hand, supporting the company’s long-term production outlook and capital return strategy. Reuters article
• Positive Sentiment: Analysts turned more constructive, with Zacks Research raising its earnings estimates for Devon Energy and keeping a Strong-Buy rating. Higher forward EPS estimates can reinforce the view that Devon’s earnings power is improving. MarketBeat DVN page
• Positive Sentiment: Recent Wall Street commentary has also been supportive, including Jefferies reiterating a Buy rating and lifting its price target, which may be helping sentiment around DVN’s valuation and longer-term upside. Yahoo Finance article
• Neutral Sentiment: There are also reminders that Devon is still exposed to oil and gas price swings, and any drop in crude prices could pressure the stock despite the acquisition and analyst upgrades. Motley Fool article
• Negative Sentiment: The company’s most recent quarterly results were mixed, with EPS and revenue both missing estimates, which can weigh on investor confidence even as the company pursues strategic growth. MarketBeat DVN page

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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