QRG Capital Management Inc. Grows Position in Devon Energy Corporation $DVN

Key Points

• QRG Capital Management increased its Devon Energy stake by 44.9% in the second quarter, bringing its holdings to 301,022 shares valued at approximately $12.4 million. Institutional investors and hedge funds own 69.72% of the company.
• Devon Energy reported quarterly EPS of $1.57, surpassing the $1.40 consensus estimate, while revenue rose 73.1% year over year to $7.42 billion. The company also declared a quarterly dividend of $0.32 per share, representing a 2.7% annualized yield.
• The stock has a Moderate Buy consensus rating with an average analyst price target of $59.76, compared with a recent price near $48. Activist investor Toms Capital is urging Devon to consider strategic alternatives, including a potential sale.

QRG Capital Management Inc. grew its position in Devon Energy Corporation (NYSE:DVN - Free Report) by 44.9% during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 301,022 shares of the energy company's stock after purchasing an additional 93,324 shares during the quarter. QRG Capital Management Inc.'s holdings in Devon Energy were worth $12,438,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in shares of Devon Energy in the 4th quarter worth $25,000. Premier Financial Group purchased a new stake in Devon Energy in the 2nd quarter valued at approximately $25,000. JFS Wealth Advisors LLC increased its position in Devon Energy by 56.6% during 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 during the period. Parvin Asset Management LLC acquired a new stake in shares of Devon Energy in the 2nd quarter valued at approximately $28,000. Finally, MV Capital Management Inc. acquired a new position in Devon Energy during the fourth quarter worth $29,000. 69.72% of the stock is owned by institutional investors and hedge funds.

Devon Energy Stock Up 2.3%

DVN opened at $48.03 on Thursday. The company has a market cap of $52.83 billion, a PE ratio of 11.41, a price-to-earnings-growth ratio of 1.27 and a beta of 0.37. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.67 and a current ratio of 0.72. Devon Energy Corporation has a 1 year low of $31.47 and a 1 year high of $52.71. The firm has a 50 day moving average price of $46.59 and a 200 day moving average price of $46.25.

Devon Energy (NYSE:DVN - Get Free Report) last released its quarterly earnings data 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. The company had revenue of $7.42 billion during the quarter, compared to analyst estimates of $6.01 billion. Devon Energy had a net margin of 16.67% and a return on equity of 14.93%. The business's quarterly revenue was up 73.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.84 earnings per share. Sell-side analysts expect that Devon Energy Corporation will post 5.27 earnings per share for the current year.

Devon Energy Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be given a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Tuesday, September 15th. Devon Energy's payout ratio is presently 30.40%.

Devon Energy News Summary

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

• Positive Sentiment: Activist pushes for strategic review: Toms Capital, which says it is now one of Devon’s five largest shareholders, urged the company to explore alternatives including an outright sale. The proposal could create the possibility of a takeover premium or other value-enhancing actions, prompting a favorable investor reaction. Activist Toms Capital urges Devon Energy to explore alternatives, including a sale
• Positive Sentiment: Post-merger execution remains supportive: Recent operating data showed second-quarter oil production of 503,000 barrels per day, production at the top end of guidance, capital spending below the midpoint of guidance, and approximately $1.7 billion in adjusted free cash flow. Devon also returned more than $1 billion through dividends, buybacks and debt reduction. Devon Energy gains as post-merger execution and oil strength support shares
• Positive Sentiment: Synergy and valuation expectations: Management remains on track to deliver at least $1 billion in annual pretax run-rate synergies from the Coterra combination by the end of 2027. Analysts have maintained generally constructive views, with a reported median price target of $62 compared with the stock’s recent level near $48. Why Devon Energy is a top momentum stock for the long term
• Neutral Sentiment: Strategic uncertainty remains: Toms Capital’s campaign follows Devon’s merger with Coterra, which closed in May. A sale process could unlock value, but it could also distract management and introduce execution, regulatory and commodity-market risks if no transaction emerges.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on DVN shares. Weiss Ratings upgraded shares of Devon Energy from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, September 9th. Wells Fargo & Company cut their target price on shares of Devon Energy from $68.00 to $65.00 and set an "overweight" rating for the company in a research report on Thursday, August 13th. Capital One Financial reduced their price target on shares of Devon Energy from $63.00 to $61.00 and set an "overweight" rating on the stock in a report on Tuesday, June 2nd. Susquehanna increased their price objective on Devon Energy from $57.00 to $63.00 and gave the company a "positive" rating in a research note on Tuesday, July 21st. Finally, Zacks Research lowered shares of Devon Energy from a "strong-buy" rating to a "hold" rating in a report on Wednesday, May 27th. Two analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $59.76.

Insider Transactions at Devon Energy

In related news, CEO Clay M. Gaspar bought 3,913 shares of the company's stock in a transaction dated Monday, September 14th. The stock was bought at an average price of $51.08 per share, with a total value of $199,876.04. Following the transaction, the chief executive officer 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 filing with the SEC, which can be accessed through this link. Also, EVP Robert Ferrall Lowe III sold 6,756 shares of the stock in a transaction on Monday, September 14th. The stock was sold at an average price of $50.95, for a total transaction of $344,218.20. Following the sale, the executive vice president directly owned 72,720 shares in the company, valued at $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. 4.58% of the stock is currently owned by insiders.

About Devon Energy

Devon Energy Corporation is an independent energy company engaged primarily in the exploration, development and production of oil, natural gas and natural gas liquids. The company also gathers, processes and transports hydrocarbons through related midstream infrastructure and markets its production to customers in the United States.

Devon's operations are concentrated in U.S. onshore basins, including 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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