Devon Energy Corporation $DVN Stock: Sterling Capital Management LLC Trims Stake

Sterling Capital Management LLC cut its holdings in shares of Devon Energy Corporation (NYSE:DVN) by 6.7% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 518,575 shares of the energy company’s stock after selling 37,164 shares during the quarter. Sterling Capital Management LLC’s holdings in Devon Energy were worth $23,875,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in DVN. Washington Trust Advisors Inc. increased its holdings in Devon Energy by 10,264.3% during the third quarter. Washington Trust Advisors Inc. now owns 2,902 shares of the energy company’s stock worth $134,000 after buying an additional 2,874 shares during the last quarter. Inspire Investing LLC raised its position in Devon Energy by 3.2% in the third quarter. Inspire Investing LLC now owns 270,741 shares of the energy company’s stock worth $12,465,000 after acquiring an additional 8,392 shares during the period. XXI Wealth LLC boosted its stake in Devon Energy by 12.6% in the third quarter. XXI Wealth LLC now owns 10,489 shares of the energy company’s stock valued at $483,000 after acquiring an additional 1,177 shares during the last quarter. MBL Wealth LLC boosted its stake in Devon Energy by 47.1% in the third quarter. MBL Wealth LLC now owns 12,543 shares of the energy company’s stock valued at $577,000 after acquiring an additional 4,016 shares during the last quarter. Finally, Compass Wealth Management LLC purchased a new position in Devon Energy during the 3rd quarter valued at about $189,000. 69.72% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on DVN shares. Weiss Ratings raised shares of Devon Energy from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. JPMorgan Chase & Co. boosted their price objective on shares of Devon Energy from $60.00 to $65.00 and gave the company an “overweight” rating in a research note on Friday, October 2nd. Truist Financial decreased their target price on shares of Devon Energy from $65.00 to $61.00 and set a “buy” rating on the stock in a report on Wednesday, October 7th. Raymond James Financial increased their target price on shares of Devon Energy from $64.00 to $67.00 and gave the stock a “strong-buy” rating in a research note on Monday, September 14th. Finally, Morgan Stanley raised their price target on shares of Devon Energy from $63.00 to $65.00 and gave the company an “overweight” rating in a report on Thursday, October 15th. Two analysts have rated the stock with a Strong Buy rating, twenty-five have given a Buy rating and three 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 price target of $60.72.

Devon Energy Price Performance

Shares of NYSE:DVN traded up $2.16 on Friday, hitting $51.34. The company’s stock had a trading volume of 13,271,761 shares, compared to its average volume of 8,705,307. The company has a 50-day simple moving average of $48.58 and a 200 day simple moving average of $46.34. Devon Energy Corporation has a 1 year low of $31.65 and a 1 year high of $52.71. The company has a market capitalization of $56.48 billion, a PE ratio of 12.20, a PEG ratio of 1.30 and a beta of 0.49. The company has a debt-to-equity ratio of 0.24, a current ratio of 0.72 and a quick ratio of 0.67.

Devon Energy (NYSE:DVN) last issued its quarterly earnings data on Tuesday, August 4th. The energy company reported $1.57 EPS for the quarter, topping the consensus estimate of $1.40 by $0.17. Devon Energy had a return on equity of 14.93% and a net margin of 16.67%. The company had revenue of $7.42 billion during the quarter, compared to analyst estimates of $6.01 billion. During the same quarter in the previous year, the firm earned $0.84 earnings per share. Devon Energy’s revenue was up 73.1% on a year-over-year basis. Sell-side analysts forecast that Devon Energy Corporation will post 5.39 EPS for the current fiscal year.

Devon Energy Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were given a dividend of $0.32 per share. The ex-dividend date was Tuesday, September 15th. This represents a $1.28 annualized dividend and a yield of 2.5%. Devon Energy’s payout ratio is presently 30.40%.

Insider Activity at Devon Energy

In related news, CEO Clay M. Gaspar purchased 3,913 shares of the firm’s stock in a transaction dated Monday, September 14th. The shares were purchased at an average price of $51.08 per share, with a total value of $199,876.04. Following the acquisition, the chief executive officer directly owned 619,152 shares of the company’s stock, valued at approximately $31,626,284.16. This represents a 0.64% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Robert Ferrall Lowe III sold 6,756 shares of the firm’s stock in a transaction 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 owned 72,720 shares in the company, valued at approximately $3,705,084. This trade represents a 8.50% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 4.58% of the company’s stock.

Key Stories Impacting Devon Energy

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

• Positive Sentiment: Higher oil prices are the main catalyst. Brent and U.S. crude moved above $100 per barrel, improving expectations for Devon’s production revenue, cash flow and shareholder returns. Oil Stocks Rally as Oil Price Tops $103
• Positive Sentiment: Portfolio optimization is supporting the investment case. Devon’s planned $4.2 billion cash sale of its Eagle Ford assets is viewed as a move toward higher-return assets and could provide capital for debt reduction, buybacks or dividends. Investors are also watching for additional strategic actions following the Coterra merger. Devon Energy gains as oil strength and portfolio-optimization hopes support shares
• Positive Sentiment: Earnings expectations remain constructive. Analysts expect third-quarter EPS of approximately $1.22, with potential for another estimate beat based on Devon’s recent history. Double-digit year-over-year EPS growth and steady oil-weighted output could reinforce the company’s cash-flow story when results are released in early November. Q3 Earnings Preview Might Change the Case for Investing in Devon Energy
• Positive Sentiment: Several analysts continue to view DVN as undervalued relative to its cash-flow potential. Reported institutional filings also showed significant additions by large investors, while published price targets have a median of $62 versus the recent share price near $51. Devon Energy Is Still a Compelling Energy Buy
• Neutral Sentiment: Unusually high call-option activity and the new 52-week high indicate strong bullish trading interest, but they may also increase volatility ahead of earnings. Devon Energy Stock Sees Unusually High Call Option Buying
• Negative Sentiment: A Seeking Alpha analysis downgraded DVN, arguing that production or growth may face an “oil wall.” The stock’s roughly 62% five-year gain also raises valuation concerns if earnings and oil prices do not continue improving. Devon Energy Hitting an Oil Wall

Devon Energy Company Profile

Devon Energy Corporation (NYSE:DVN) is an independent energy company engaged primarily in the exploration, development and production of oil, natural gas and natural gas liquids. The company focuses on onshore operations in the United States and markets the hydrocarbons produced from its assets to customers across the energy sector.

Devon’s portfolio has historically included major U.S. resource plays such as the Delaware Basin in the Permian Basin, the Eagle Ford, the Anadarko Basin, the Williston Basin and the Powder River Basin.