Devon Energy Corporation $DVN Stock: Sterling Capital Management LLC Trims Holdings

Key Points

• Sterling Capital Management reduced its Devon Energy position by 6.7% in the third quarter, selling 37,164 shares and retaining 518,575 shares valued at approximately $23.9 million. Institutional investors and hedge funds collectively own 69.72% of DVN.
• Devon shares rose 4.4% to $51.34, supported by strong recent earnings and higher oil prices. The company reported quarterly EPS of $1.57 versus expectations of $1.40, while revenue increased 73.1% year over year to $7.42 billion.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $60.72 target price. Devon also pays a quarterly dividend of $0.32, equivalent to a 2.5% annual yield.

Sterling Capital Management LLC trimmed its position in Devon Energy Corporation (NYSE:DVN - Free Report) by 6.7% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 518,575 shares of the energy company's stock after selling 37,164 shares during the period. Sterling Capital Management LLC's holdings in Devon Energy were worth $23,875,000 at the end of the most recent quarter.

A number of other institutional investors have also added to or reduced their stakes in DVN. Sigma Planning Corp raised its position in shares of Devon Energy by 3.5% during the second quarter. Sigma Planning Corp now owns 6,902 shares of the energy company's stock worth $285,000 after purchasing an additional 233 shares during the period. Retirement Planning Group LLC lifted its holdings in shares of Devon Energy by 4.5% in the 2nd quarter. Retirement Planning Group LLC now owns 5,647 shares of the energy company's stock worth $233,000 after purchasing an additional 243 shares in the last quarter. JFS Wealth Advisors LLC lifted its holdings in shares of Devon Energy by 56.6% in the 2nd quarter. JFS Wealth Advisors LLC now owns 678 shares of the energy company's stock worth $28,000 after purchasing an additional 245 shares in the last quarter. Physician Wealth Advisors Inc. lifted its holdings in shares of Devon Energy by 32.4% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 1,062 shares of the energy company's stock worth $49,000 after purchasing an additional 260 shares in the last quarter. Finally, Titleist Asset Management LLC grew its position in Devon Energy by 5.7% in the 3rd quarter. Titleist Asset Management LLC now owns 5,556 shares of the energy company's stock valued at $256,000 after purchasing an additional 298 shares during the period. 69.72% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Devon Energy

In other news, CEO Clay M. Gaspar purchased 3,913 shares of the company's stock in a transaction that occurred on Monday, September 14th. The shares were bought at an average cost of $51.08 per share, with a total value of $199,876.04. Following the completion of the transaction, the chief executive officer directly owned 619,152 shares of the company's stock, valued at approximately $31,626,284.16. This trade represents a 0.64% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Robert Ferrall Lowe III sold 6,756 shares of the business's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $50.95, for a total transaction of $344,218.20. Following the transaction, the executive vice president owned 72,720 shares in the company, valued at approximately $3,705,084. This trade represents a 8.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 4.58% of the company's stock.

Devon Energy News Roundup

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

• Positive Sentiment: Higher oil prices are the main catalyst. Brent and U.S. crude moved above $100 per barrel, improving expectations for Devon’s production revenue, cash flow and shareholder returns. Oil Stocks Rally as Oil Price Tops $103
• Positive Sentiment: Portfolio optimization is supporting the investment case. Devon’s planned $4.2 billion cash sale of its Eagle Ford assets is viewed as a move toward higher-return assets and could provide capital for debt reduction, buybacks or dividends. Investors are also watching for additional strategic actions following the Coterra merger. Devon Energy gains as oil strength and portfolio-optimization hopes support shares
• Positive Sentiment: Earnings expectations remain constructive. Analysts expect third-quarter EPS of approximately $1.22, with potential for another estimate beat based on Devon’s recent history. Double-digit year-over-year EPS growth and steady oil-weighted output could reinforce the company’s cash-flow story when results are released in early November. Q3 Earnings Preview Might Change the Case for Investing in Devon Energy
• Positive Sentiment: Several analysts continue to view DVN as undervalued relative to its cash-flow potential. Reported institutional filings also showed significant additions by large investors, while published price targets have a median of $62 versus the recent share price near $51. Devon Energy Is Still a Compelling Energy Buy
• Neutral Sentiment: Unusually high call-option activity and the new 52-week high indicate strong bullish trading interest, but they may also increase volatility ahead of earnings. Devon Energy Stock Sees Unusually High Call Option Buying
• Negative Sentiment: A Seeking Alpha analysis downgraded DVN, arguing that production or growth may face an “oil wall.” The stock’s roughly 62% five-year gain also raises valuation concerns if earnings and oil prices do not continue improving. Devon Energy Hitting an Oil Wall

Analyst Ratings Changes

A number of analysts have commented on the stock. Susquehanna boosted their price target on shares of Devon Energy from $57.00 to $63.00 and gave the company a "positive" rating in a research note on Tuesday, July 21st. Argus reaffirmed a "buy" rating and issued a $45.85 price objective on shares of Devon Energy in a research note on Monday, August 17th. Seaport Research Partners started coverage on shares of Devon Energy in a report on Thursday, September 3rd. They set a "buy" rating and a $65.00 price objective for the company. Truist Financial decreased their target price on shares of Devon Energy from $65.00 to $61.00 and set a "buy" rating for the company in a research report on Wednesday, October 7th. Finally, Scotiabank initiated coverage on shares of Devon Energy in a research report on Wednesday, October 14th. They set a "sector outperform" rating and a $61.00 target price for the company. Two analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $60.72.

Devon Energy Stock Up 4.4%

Shares of NYSE:DVN traded up $2.16 during mid-day trading on Friday, hitting $51.34. 13,271,761 shares of the company traded hands, compared to its average volume of 8,705,307. The stock has a market cap of $56.48 billion, a P/E ratio of 12.20, a P/E/G ratio of 1.30 and a beta of 0.49. The company has a current ratio of 0.72, a quick ratio of 0.67 and a debt-to-equity ratio of 0.24. Devon Energy Corporation has a 12-month low of $31.65 and a 12-month high of $52.71. The stock has a 50-day moving average price of $48.58 and a two-hundred day moving average price of $46.34.

Devon Energy (NYSE:DVN - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The energy company reported $1.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.40 by $0.17. Devon Energy had a return on equity of 14.93% and a net margin of 16.67%. The business had revenue of $7.42 billion during the quarter, compared to the consensus estimate of $6.01 billion. During the same quarter in the prior year, the company posted $0.84 earnings per share. Devon Energy's revenue was up 73.1% compared to the same quarter last year. On average, equities research analysts forecast that Devon Energy Corporation will post 5.39 earnings per share for the current year.

Devon Energy Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were paid a $0.32 dividend. The ex-dividend date was Tuesday, September 15th. This represents a $1.28 annualized dividend and a dividend yield of 2.5%. Devon Energy's dividend payout ratio is presently 30.40%.

Devon Energy Company Profile

Devon Energy Corporation NYSE: DVN is an independent energy company engaged primarily in the exploration, development and production of oil, natural gas and natural gas liquids. The company focuses on onshore operations in the United States and markets the hydrocarbons produced from its assets to customers across the energy sector.

Devon's portfolio has historically included major U.S. resource plays such as the Delaware Basin in the Permian Basin, the Eagle Ford, the Anadarko Basin, the Williston Basin and the Powder River Basin.

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