Devon Energy (NYSE:DVN) Stock Price Breaks Above Two Hundred Day Moving Average on Analyst Downgrade

Key Points

• Devon Energy shares rose above their 200-day moving average, reaching $46.51; JPMorgan raised its price target to $68 and maintained an overweight rating.
• Analyst sentiment is broadly positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $59.92. The company’s latest quarterly earnings and revenue also beat analyst estimates.
• Devon declared a quarterly dividend of $0.32 per share, equivalent to an annualized $1.28 and a 2.8% yield.

Shares of Devon Energy Corporation (NYSE:DVN - Get Free Report) passed above its 200-day moving average during trading on Thursday after JPMorgan Chase & Co. raised their price target on the stock from $65.00 to $68.00. The stock has a 200-day moving average of $46.16 and traded as high as $46.51. JPMorgan Chase & Co. currently has an overweight rating on the stock. Devon Energy shares last traded at $46.1890, with a volume of 9,940,691 shares traded.

A number of other research firms have also recently commented on DVN. Stifel Nicolaus began coverage on shares of Devon Energy in a report on Thursday, September 10th. They issued a "buy" rating and a $61.00 price target on the stock. Morgan Stanley reduced their price objective on Devon Energy from $65.00 to $64.00 and set an "overweight" rating for the company in a report on Monday. Citigroup raised their target price on Devon Energy from $65.00 to $67.00 and gave the stock a "buy" rating in a research report on Monday, August 31st. Wells Fargo & Company decreased their target price on Devon Energy from $65.00 to $64.00 and set an "overweight" rating for the company in a research report on Monday, September 28th. Finally, Mizuho lowered their target price on Devon Energy from $68.00 to $65.00 and set an "outperform" rating on the stock in a research note on Friday, October 16th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $59.92.

Insider Activity

In related news, EVP Robert Ferrall Lowe III sold 6,756 shares of the company's stock in a transaction that occurred on Monday, September 14th. The shares were 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 approximately $3,705,084. This represents a 8.50% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Clay M. Gaspar acquired 3,913 shares of the business's stock in a transaction that occurred on Monday, September 14th. The stock was acquired at an average cost of $51.08 per share, with a total value of $199,876.04. Following the completion of the acquisition, the chief executive officer owned 619,152 shares in the company, valued at $31,626,284.16. This trade represents a 0.64% increase in their position. The disclosure for this purchase is available in the SEC filing. 4.58% of the stock is owned by company insiders.

Institutional Investors Weigh In On Devon Energy

Several institutional investors have recently made changes to their positions in the stock. BlackRock Inc. lifted its holdings in Devon Energy by 57.6% during the 2nd quarter. BlackRock Inc. now owns 95,378,854 shares of the energy company's stock worth $3,941,054,000 after purchasing an additional 34,871,366 shares in the last quarter. State Street Corp grew its holdings in Devon Energy by 89.8% during the 2nd quarter. State Street Corp now owns 73,179,266 shares of the energy company's stock valued at $3,023,767,000 after buying an additional 34,615,088 shares in the last quarter. Wellington Management Group LLP increased its position in shares of Devon Energy by 418.3% during the second quarter. Wellington Management Group LLP now owns 51,522,376 shares of the energy company's stock valued at $2,128,905,000 after buying an additional 41,581,435 shares during the period. Dimensional Fund Advisors LP increased its position in shares of Devon Energy by 2.5% during the first 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, Bank of America Corp DE bought a new stake in shares of Devon Energy during the second quarter valued at about $421,226,000. Hedge funds and other institutional investors own 69.72% of the company's stock.

Devon Energy Stock Performance

The stock has a market capitalization of $52.64 billion, a PE ratio of 11.55, a P/E/G ratio of 1.01 and a beta of 0.43. The company has a debt-to-equity ratio of 0.23, a current ratio of 0.70 and a quick ratio of 0.65. The business's fifty day moving average price is $48.30 and its 200-day moving average price is $46.16.

Devon Energy (NYSE:DVN - Get Free Report) last issued its quarterly earnings data on Thursday, November 5th. The energy company reported $1.42 EPS for the quarter, beating the consensus estimate of $1.33 by $0.09. The company had revenue of $6.86 billion during the quarter, compared to analysts' expectations of $6.57 billion. Devon Energy had a net margin of 16.22% and a return on equity of 14.86%. Devon Energy's revenue for the quarter was up 66.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.04 earnings per share. As a group, equities research analysts expect that Devon Energy Corporation will post 5.56 EPS for the current year.

Devon Energy Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 30th. Stockholders of record on Tuesday, December 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 2.8%. The ex-dividend date is Tuesday, December 15th. Devon Energy's payout ratio is 32.00%.

About Devon Energy

Devon Energy Corporation is an independent energy company focused on exploring for and producing oil, natural gas and natural gas liquids. Its activities include developing and operating producing properties and managing the infrastructure needed to bring its products to market. Founded in 1971, Devon is headquartered in Oklahoma City. Its operations are concentrated in U.S. onshore basins, including the Delaware Basin, Eagle Ford, Anadarko, Williston and Powder River basins. The company's portfolio has evolved through acquisitions and asset sales over its history.

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