Encompass Capital Advisors LLC Invests $63.56 Million in Devon Energy Corporation $DVN

Key Points

• Encompass Capital Advisors LLC acquired approximately 1.7 million shares of Devon Energy Corporation, valued at around $63.6 million, making it the fund's 16th largest holding.
• Devon Energy's stock has seen a 3.7% decline recently, with its current share price at $35.08, but analysts maintain a positive outlook with several price target increases.
• The company announced a quarterly dividend of $0.24, yielding 2.7%, indicating a strong commitment to returning value to shareholders.

Encompass Capital Advisors LLC acquired a new stake in Devon Energy Corporation (NYSE:DVN - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund acquired 1,699,493 shares of the energy company's stock, valued at approximately $63,561,000. Devon Energy comprises approximately 2.4% of Encompass Capital Advisors LLC's investment portfolio, making the stock its 16th biggest position. Encompass Capital Advisors LLC owned 0.26% of Devon Energy at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Alliancebernstein L.P. lifted its position in Devon Energy by 29.0% in the first quarter. Alliancebernstein L.P. now owns 1,198,996 shares of the energy company's stock valued at $44,842,000 after purchasing an additional 269,774 shares during the last quarter. AQR Capital Management LLC raised its holdings in shares of Devon Energy by 100.0% during the first quarter. AQR Capital Management LLC now owns 3,558,362 shares of the energy company's stock valued at $132,051,000 after acquiring an additional 1,779,382 shares in the last quarter. Amundi raised its holdings in shares of Devon Energy by 4.6% during the first quarter. Amundi now owns 2,323,938 shares of the energy company's stock valued at $86,915,000 after acquiring an additional 103,059 shares in the last quarter. Adage Capital Partners GP L.L.C. raised its holdings in shares of Devon Energy by 14.8% during the first quarter. Adage Capital Partners GP L.L.C. now owns 2,484,492 shares of the energy company's stock valued at $92,920,000 after acquiring an additional 320,700 shares in the last quarter. Finally, Chiron Capital Management LLC raised its holdings in shares of Devon Energy by 5.9% during the first quarter. Chiron Capital Management LLC now owns 17,915 shares of the energy company's stock valued at $670,000 after acquiring an additional 1,001 shares in the last quarter. Institutional investors own 69.72% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. The Goldman Sachs Group upped their target price on Devon Energy from $38.00 to $43.00 and gave the company a "buy" rating in a report on Thursday, May 15th. UBS Group upped their target price on Devon Energy from $37.00 to $40.00 and gave the company a "neutral" rating in a report on Wednesday, August 20th. Piper Sandler decreased their target price on Devon Energy from $58.00 to $57.00 and set an "overweight" rating for the company in a report on Thursday, August 14th. William Blair assumed coverage on Devon Energy in a research note on Monday, August 25th. They issued an "outperform" rating on the stock. Finally, Jefferies Financial Group upped their price target on Devon Energy from $31.00 to $33.00 and gave the stock a "hold" rating in a research note on Monday, July 14th. Sixteen equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $44.15.

Devon Energy Price Performance

NYSE DVN traded down $0.25 during trading on Monday, hitting $34.52. 8,059,242 shares of the stock traded hands, compared to its average volume of 8,830,261. The company has a market capitalization of $21.91 billion, a P/E ratio of 7.74, a price-to-earnings-growth ratio of 2.00 and a beta of 1.09. The firm has a 50-day simple moving average of $33.70 and a 200-day simple moving average of $33.17. The company has a quick ratio of 1.13, a current ratio of 1.22 and a debt-to-equity ratio of 0.55. Devon Energy Corporation has a 12-month low of $25.89 and a 12-month high of $43.29.

Devon Energy (NYSE:DVN - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The energy company reported $0.84 earnings per share for the quarter, beating the consensus estimate of $0.83 by $0.01. The business had revenue of $4.28 billion during the quarter, compared to analysts' expectations of $4.01 billion. Devon Energy had a return on equity of 18.59% and a net margin of 16.57%.The firm's revenue for the quarter was up 9.4% compared to the same quarter last year. During the same quarter last year, the business posted $1.41 EPS. As a group, analysts predict that Devon Energy Corporation will post 4.85 EPS for the current year.

Devon Energy Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th will be issued a dividend of $0.24 per share. This represents a $0.96 annualized dividend and a yield of 2.8%. The ex-dividend date is Monday, September 15th. Devon Energy's dividend payout ratio (DPR) is currently 21.52%.

Insiders Place Their Bets

In other Devon Energy news, Director Kelt Kindick sold 7,685 shares of the firm's stock in a transaction that occurred on Monday, August 11th. The stock was sold at an average price of $33.46, for a total transaction of $257,140.10. Following the completion of the transaction, the director owned 31,801 shares in the company, valued at $1,064,061.46. This trade represents a 19.46% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.73% of the stock is owned by corporate insiders.

Devon Energy Company Profile

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.