Yacktman Asset Management LP Cuts Stake in Devon Energy Corporation $DVN

Key Points

• Yacktman Asset Management reduced its Devon Energy stake by 17% in the fourth quarter, though it still held 432,311 shares worth about $15.8 million at the end of the period.
• Devon Energy recently completed its merger with Coterra Energy and also approved an $8 billion share buyback, signaling a larger scale and a more aggressive return-of-capital strategy.
• The company raised its quarterly dividend to $0.32 per share from $0.24, but its latest earnings were mixed, with EPS and revenue both missing analyst expectations.

Yacktman Asset Management LP trimmed its position in shares of Devon Energy Corporation (NYSE:DVN - Free Report) by 17.0% during the 4th quarter, according to its most recent 13F filing with the SEC. The fund owned 432,311 shares of the energy company's stock after selling 88,855 shares during the quarter. Yacktman Asset Management LP owned about 0.07% of Devon Energy worth $15,836,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of DVN. Woodline Partners LP grew its position in Devon Energy by 98.8% during the 1st quarter. Woodline Partners LP now owns 115,780 shares of the energy company's stock valued at $4,330,000 after purchasing an additional 57,555 shares during the last quarter. Sivia Capital Partners LLC purchased a new stake in Devon Energy during the 2nd quarter valued at about $403,000. Jump Financial LLC grew its position in Devon Energy by 58.8% during the 2nd quarter. Jump Financial LLC now owns 28,251 shares of the energy company's stock valued at $899,000 after purchasing an additional 10,464 shares during the last quarter. Daiwa Securities Group Inc. grew its position in Devon Energy by 17.8% during the 2nd quarter. Daiwa Securities Group Inc. now owns 148,882 shares of the energy company's stock valued at $4,736,000 after purchasing an additional 22,482 shares during the last quarter. Finally, NewEdge Advisors LLC grew its position in Devon Energy by 6.0% during the 2nd quarter. NewEdge Advisors LLC now owns 144,174 shares of the energy company's stock valued at $4,586,000 after purchasing an additional 8,127 shares during the last quarter. 69.72% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Devon Energy

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

• Positive Sentiment: Devon completed its merger with Coterra Energy, creating a larger shale operator with a stronger asset base and a continued NYSE listing under DVN. Article: Devon Energy and Coterra Energy Complete Merger
• Positive Sentiment: The board approved an $8 billion share buyback plan, boosting shareholder returns and suggesting management sees the stock as attractive at current levels. Article: Shale producer Devon Energy approves $8 billion share buyback plan
• Positive Sentiment: Devon raised its quarterly dividend to $0.32 per share from $0.24, a meaningful increase that should appeal to income-focused investors. Article: Devon Energy Corp. stock outperforms competitors despite losses on the day
• Neutral Sentiment: The combined company will be headquartered in Houston while maintaining a significant presence in Oklahoma City, with operations continuing under the Devon name and ticker. Article: Devon Energy completes $58bn merger with Coterra Energy
• Neutral Sentiment: Devon’s latest quarterly results were mixed, with earnings slightly below expectations and revenue below forecasts, which may temper enthusiasm despite the merger and capital-return news.

Devon Energy Stock Performance

Shares of NYSE DVN opened at $45.60 on Friday. The firm's 50-day moving average price is $47.32 and its 200-day moving average price is $40.82. The company has a quick ratio of 0.90, a current ratio of 1.01 and a debt-to-equity ratio of 0.48. The company has a market cap of $28.34 billion, a PE ratio of 12.70, a PEG ratio of 0.69 and a beta of 0.43. Devon Energy Corporation has a 52-week low of $30.24 and a 52-week high of $52.71.

Devon Energy (NYSE:DVN - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The energy company reported $1.04 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.06 by ($0.02). The company had revenue of $3.81 billion for the quarter, compared to analysts' expectations of $4.34 billion. Devon Energy had a net margin of 13.71% and a return on equity of 15.22%. The business's revenue was down 14.5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.82 EPS. As a group, analysts anticipate that Devon Energy Corporation will post 5.66 EPS for the current year.

Devon Energy Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be issued a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend is Monday, June 15th. This is a boost from Devon Energy's previous quarterly dividend of $0.24. Devon Energy's payout ratio is 26.74%.

Analyst Ratings Changes

Several brokerages recently commented on DVN. Mizuho increased their price objective on shares of Devon Energy from $51.00 to $62.00 and gave the company an "outperform" rating in a research report on Tuesday, March 17th. Royal Bank Of Canada increased their price objective on shares of Devon Energy from $46.00 to $59.00 and gave the company a "sector perform" rating in a research report on Wednesday, April 8th. Zacks Research raised shares of Devon Energy from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, April 28th. Morgan Stanley raised their price target on shares of Devon Energy from $46.00 to $59.00 and gave the company an "overweight" rating in a report on Tuesday, April 28th. Finally, Tudor Pickering raised shares of Devon Energy from a "hold" rating to a "strong-buy" rating in a report on Monday, April 20th. Four equities research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, Devon Energy has an average rating of "Moderate Buy" and an average price target of $55.59.

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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