Devon Energy (NYSE:DVN) Shares Gap Up After Strong Earnings

Devon Energy Co. (NYSE:DVN - Get Free Report)'s stock price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $34.88, but opened at $36.20. Devon Energy shares last traded at $37.93, with a volume of 3,647,664 shares.

The energy company reported $1.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.00 by $0.16. The firm had revenue of $4.40 billion during the quarter, compared to analysts' expectations of $4.25 billion. Devon Energy had a return on equity of 22.52% and a net margin of 18.14%.

Devon Energy Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 31st. Stockholders of record on Friday, March 14th will be issued a $0.24 dividend. This is an increase from Devon Energy's previous quarterly dividend of $0.22. This represents a $0.96 annualized dividend and a dividend yield of 2.56%. The ex-dividend date of this dividend is Friday, March 14th. Devon Energy's dividend payout ratio is 19.30%.

Analysts Set New Price Targets

Several research analysts recently issued reports on the stock. Truist Financial raised their target price on shares of Devon Energy from $42.00 to $44.00 and gave the stock a "hold" rating in a report on Thursday. Citigroup reduced their price objective on Devon Energy from $55.00 to $48.00 and set a "buy" rating for the company in a research note on Tuesday, November 26th. Cowen cut shares of Devon Energy to a "hold" rating and decreased their target price for the company from $46.00 to $45.00 in a research note on Tuesday. Raymond James increased their target price on shares of Devon Energy from $53.00 to $54.00 and gave the stock an "outperform" rating in a research note on Thursday, January 23rd. Finally, Wells Fargo & Company dropped their price objective on Devon Energy from $49.00 to $43.00 and set an "overweight" rating on the stock in a report on Tuesday, December 17th. Ten investment analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $48.83.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of DVN. EnCap Energy Capital Fund XI L.P. acquired a new position in Devon Energy in the 3rd quarter valued at about $461,857,000. EnCap Partners GP LLC acquired a new position in Devon Energy in the third quarter valued at approximately $408,653,000. EnCap Energy Capital Fund X L.P. purchased a new position in Devon Energy in the third quarter worth approximately $230,928,000. Vanguard Group Inc. increased its stake in Devon Energy by 7.3% during the fourth quarter. Vanguard Group Inc. now owns 80,682,170 shares of the energy company's stock worth $2,640,727,000 after acquiring an additional 5,465,692 shares during the last quarter. Finally, Raymond James Financial Inc. purchased a new stake in Devon Energy in the fourth quarter valued at $154,170,000. Institutional investors and hedge funds own 69.72% of the company's stock.

Devon Energy Trading Down 2.8 %

The firm has a market cap of $24.33 billion, a price-to-earnings ratio of 8.22, a price-to-earnings-growth ratio of 1.20 and a beta of 1.98. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.01 and a current ratio of 1.04. The company has a 50 day moving average price of $34.47 and a 200 day moving average price of $38.37.

About Devon Energy

Devon Energy Corporation, an independent energy company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates in Delaware, Eagle Ford, Anadarko, Williston, and Powder River Basins. The company was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.