Devon Energy (NYSE:DVN) Upgraded by The Goldman Sachs Group to Strong-Buy Rating

Key Points

• Goldman Sachs upgraded Devon Energy to a strong-buy rating, adding to generally positive analyst coverage despite a few mixed recent calls from other firms.
• Devon’s stock was down 1.5% and opened at $42.72, while the company also reported a recent quarterly earnings miss and lower-than-expected revenue, though analysts still expect 4.97 EPS for the current fiscal year.
• Recent developments include insider selling and continued heavy institutional ownership at about 69.72%, while broader pressure from falling oil prices remains a headwind for the stock.

Devon Energy (NYSE:DVN - Get Free Report) was upgraded by stock analysts at The Goldman Sachs Group to a "strong-buy" rating in a research note issued to investors on Tuesday,Zacks.com reports.

Other analysts also recently issued research reports about the stock. Weiss Ratings reiterated a "hold (c)" rating on shares of Devon Energy in a report on Thursday, June 11th. Citigroup boosted their target price on Devon Energy from $60.00 to $65.00 and gave the stock a "buy" rating in a report on Wednesday, May 20th. Zacks Research lowered Devon Energy from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, May 27th. Wall Street Zen cut Devon Energy from a "buy" rating to a "hold" rating in a report on Sunday. Finally, TD Cowen lifted their price objective on Devon Energy from $46.00 to $50.00 and gave the stock a "hold" rating in a research report on Tuesday, March 17th. Three research analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $58.96.

Devon Energy Stock Down 1.5%

Shares of DVN opened at $42.72 on Tuesday. The stock has a 50 day moving average price of $46.10 and a 200 day moving average price of $43.47. Devon Energy has a one year low of $31.45 and a one year high of $52.71. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.94 and a current ratio of 1.01. The stock has a market capitalization of $26.54 billion, a price-to-earnings ratio of 11.90 and a beta of 0.37.

Devon Energy (NYSE:DVN - Get Free Report) last announced its earnings results on Tuesday, May 5th. The energy company reported $1.04 earnings per share (EPS) for the quarter, missing the consensus estimate 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 last year, the firm earned $0.82 EPS. Equities research analysts forecast that Devon Energy will post 4.97 earnings per share for the current fiscal year.

Insider Activity

In other news, EVP Jeffrey L. Ritenour sold 70,029 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were 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 owned 428,452 shares of the company's stock, valued at $19,991,570.32. This represents a 14.05% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, SVP Andrea Alexander sold 18,000 shares of the firm's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $46.74, for a total transaction of $841,320.00. Following the sale, the senior vice president owned 138,529 shares of the company's stock, valued at $6,474,845.46. This represents a 11.50% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 112,371 shares of company stock valued at $5,258,059 in the last 90 days. Company insiders own 4.58% of the company's stock.

Institutional Investors Weigh In On Devon Energy

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DVN. State Street Corp grew its holdings in shares of Devon Energy by 0.6% during the 4th quarter. State Street Corp now owns 35,542,293 shares of the energy company's stock worth $1,301,914,000 after purchasing an additional 212,074 shares during the period. Geode Capital Management LLC increased its position in shares of Devon Energy by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 19,177,835 shares of the energy company's stock worth $700,238,000 after purchasing an additional 186,743 shares during the last quarter. Victory Capital Management Inc. raised its holdings in Devon Energy by 17.5% in the 4th quarter. Victory Capital Management Inc. now owns 13,916,979 shares of the energy company's stock valued at $509,779,000 after buying an additional 2,071,021 shares during the period. Dimensional Fund Advisors LP raised its holdings in Devon Energy by 2.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 9,606,131 shares of the energy company's stock valued at $483,475,000 after buying an additional 235,561 shares during the period. Finally, Kimmeridge Energy Management Company LLC lifted its position in Devon Energy by 56.5% in the fourth quarter. Kimmeridge Energy Management Company LLC now owns 8,850,790 shares of the energy company's stock valued at $324,204,000 after buying an additional 3,195,862 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:

• Neutral Sentiment: Devon announced the final results of its private exchange offers and consent solicitations for existing Coterra Energy notes, with settlement expected on or about June 25. The company said strong participation in several note series should help reshape its debt profile, which may support financial flexibility over time. Article link
• Neutral Sentiment: Investor commentary noted that Devon has been moving with the energy sector as crude oil prices fell to their lowest level since the start of recent Middle East tensions eased. Lower oil prices are a headwind for upstream producers like DVN because they can reduce expected cash flow and earnings. Article link
• Neutral Sentiment: Devon also participated in the J.P. Morgan Energy, Power & Renewables Conference, but the available information does not indicate any major new guidance or catalyst from that event. Article link
• Neutral Sentiment: Analyst tone remains generally constructive overall, with recent reports including an “Overweight” rating from Morgan Stanley and a median price target above the current trading range, which may help limit downside sentiment. Article link
• Negative Sentiment: Devon’s stock also reacted to a broader selloff in oil and gas names after crude prices weakened, a direct negative for DVN and other energy producers. Article link

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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