Zacks Research Increases Earnings Estimates for Devon Energy

Key Points

• Zacks Research raised its Q2 2026 earnings estimate for Devon Energy to $1.25 per share from $1.04, while keeping a Hold rating on the stock. The firm also lifted its longer-term earnings forecasts for fiscal 2026 through 2028.
• Devon Energy’s latest quarterly results missed expectations, with EPS of $1.04 versus $1.06 expected and revenue of $3.81 billion versus $4.34 billion estimated. Revenue also declined 14.5% year over year.
• The company boosted its quarterly dividend to $0.32 per share from $0.24, implying a 2.9% yield. Separately, analysts remain generally constructive, with several price target increases and a consensus rating of Moderate Buy.

Devon Energy Corporation (NYSE:DVN - Free Report) - Research analysts at Zacks Research lifted their Q2 2026 earnings estimates for shares of Devon Energy in a research report issued on Thursday, May 28th. Zacks Research analyst Team now anticipates that the energy company will earn $1.25 per share for the quarter, up from their previous estimate of $1.04. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Devon Energy's current full-year earnings is $4.24 per share. Zacks Research also issued estimates for Devon Energy's Q3 2026 earnings at $1.06 EPS, Q4 2026 earnings at $1.04 EPS, FY2026 earnings at $4.39 EPS, Q1 2027 earnings at $1.18 EPS, Q3 2027 earnings at $1.08 EPS, Q4 2027 earnings at $1.13 EPS, FY2027 earnings at $4.43 EPS, Q1 2028 earnings at $1.15 EPS and FY2028 earnings at $4.82 EPS.

Devon Energy (NYSE:DVN - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The energy company reported $1.04 earnings per share for the quarter, missing the consensus estimate of $1.06 by ($0.02). Devon Energy had a return on equity of 15.22% and a net margin of 13.71%.The business had revenue of $3.81 billion during the quarter, compared to the consensus estimate of $4.34 billion. During the same quarter last year, the company earned $0.82 EPS. Devon Energy's revenue for the quarter was down 14.5% on a year-over-year basis.

A number of other equities research analysts have also recently commented on DVN. BMO Capital Markets raised their target price on shares of Devon Energy from $60.00 to $65.00 and gave the stock an "outperform" rating in a research note on Wednesday, May 13th. 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 report on Wednesday, April 8th. Mizuho increased their price objective on shares of Devon Energy from $62.00 to $68.00 and gave the company an "outperform" rating in a report on Wednesday. Wall Street Zen lowered shares of Devon Energy from a "buy" rating to a "hold" rating in a report on Sunday, May 17th. Finally, Morgan Stanley raised their target price on shares of Devon Energy from $59.00 to $66.00 and gave the company an "overweight" rating in a report on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, Devon Energy presently has an average rating of "Moderate Buy" and a consensus price target of $57.85.

Devon Energy Price Performance

Shares of NYSE:DVN opened at $44.54 on Monday. The firm's 50 day moving average price is $47.96 and its 200-day moving average price is $42.43. Devon Energy has a twelve month low of $30.24 and a twelve month high of $52.71. The company has a quick ratio of 0.94, a current ratio of 1.01 and a debt-to-equity ratio of 0.48. The stock has a market capitalization of $27.68 billion, a PE ratio of 12.41 and a beta of 0.38.

Hedge Funds Weigh In On Devon Energy

Large investors have recently added to or reduced their stakes in the company. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in Devon Energy in the fourth quarter worth about $25,000. SouthState Bank Corp raised its holdings in Devon Energy by 173.6% in the first quarter. SouthState Bank Corp now owns 766 shares of the energy company's stock worth $39,000 after purchasing an additional 486 shares in the last quarter. MV Capital Management Inc. bought a new position in Devon Energy in the fourth quarter worth about $29,000. Garton & Associates Financial Advisors LLC bought a new position in Devon Energy in the fourth quarter worth about $29,000. Finally, Ameriflex Group Inc. raised its holdings in Devon Energy by 702.0% in the third quarter. Ameriflex Group Inc. now owns 802 shares of the energy company's stock worth $28,000 after purchasing an additional 702 shares in the last quarter. 69.72% of the stock is currently owned by institutional investors.

Insider Activity

In related news, SVP Adam M. Vela sold 24,342 shares of Devon Energy stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $47.21, for a total value of $1,149,185.82. Following the completion of the sale, the senior vice president directly owned 130,540 shares in the company, valued at $6,162,793.40. The trade was a 15.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Jeffrey L. Ritenour sold 70,029 shares of the business's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $46.66, for a total transaction of $3,267,553.14. Following the completion of the transaction, the executive vice president owned 428,452 shares of the company's stock, valued at $19,991,570.32. This represents a 14.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 4.58% of the company's stock.

Devon Energy Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be issued a $0.32 dividend. The ex-dividend date is Monday, June 15th. This is an increase from Devon Energy's previous quarterly dividend of $0.24. This represents a $1.28 annualized dividend and a dividend yield of 2.9%. Devon Energy's dividend payout ratio is presently 26.74%.

Devon Energy News Summary

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

• Positive Sentiment: Reuters reported Devon Energy received an estimated $8 billion bid for its Marcellus shale gas assets, which investors see as evidence the assets may be worth more than previously thought and could support a portfolio simplification strategy. Devon Energy gets $8B offer for Marcellus shale assets - Reuters
• Positive Sentiment: Analyst commentary from Mizuho turned more constructive, with the firm raising its price target on Devon Energy to $68 from $62 and reiterating an Outperform rating, citing support from higher oil prices. Mizuho Raises Devon Energy (DVN) Price Target as Higher Oil Prices Support Outlook
• Positive Sentiment: Zacks Research raised multiple earnings estimates for Devon Energy, including FY2026, FY2027, and FY2028, signaling expectations for stronger future profitability even though the rating remains Hold.
• Positive Sentiment: Devon also completed a $2.6 billion Delaware Basin acquisition for 16,300 net undeveloped acres, which may strengthen its long-term oil and gas inventory and production optionality. Devon Energy Corporation (DVN) Boosts Delaware Basin Position with $2.6B Acquisition

Devon Energy Company Profile

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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