Valley National Advisers Inc. has significantly reduced its stake in Devon Energy Corporation (NYSE: DVN), trimming its holdings by an impressive 95.2% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the institutional investor held only 2,370 shares at the end of the quarter, having sold 46,500 shares during this period. The remaining shares are now valued at approximately $83,000.
Other institutional investors have also made adjustments to their positions in Devon Energy. Notably, Opal Wealth Advisors LLC and Caldwell Trust Co each established new stakes worth around $25,000 in the second quarter. Additionally, PFS Partners LLC also acquired a new position in the third quarter valued at $25,000. Trust Co. of Vermont has notably increased its stake by 241.3%, now owning 942 shares valued at $30,000 after adding 666 shares during the last quarter. Furthermore, FNY Investment Advisers LLC joined with a new position valued at $34,000. In total, institutional investors and hedge funds hold 69.72% of Devon Energy’s stock.
Analysts React to Devon Energy’s Performance
A series of analyst reports have emerged following the adjustments in holdings. On November 26, Argus upgraded Devon Energy to a “strong-buy” rating. Meanwhile, the Goldman Sachs Group raised its target price for the shares from $40.00 to $42.00, maintaining a “buy” rating. Similarly, Mizuho increased its price target from $40.00 to $43.00, also assigning an “outperform” rating.
Conversely, Johnson Rice lowered its price target from $70.00 to $62.00, yet retained a “buy” rating. Meanwhile, Siebert Williams Shank reduced its price target from $52.00 to $46.00, reaffirming a “buy” rating. Currently, analysts have issued two “strong buy,” twenty-one “buy,” six “hold,” and one “sell” rating on the stock, resulting in an average rating of “moderate buy” and a consensus price target of $44.86, according to data from MarketBeat.com.
Devon Energy’s Stock Performance and Financial Results
As of Monday, shares of Devon Energy opened at $35.70, reflecting a 1.4% decrease. The company has experienced a fifty-two week low of $25.89 and a high of $38.88. Devon Energy’s market capitalization stands at approximately $22.39 billion, with a price-to-earnings ratio of 8.40 and a price-to-earnings-growth ratio of 2.71. The company’s debt-to-equity ratio is 0.48, indicating a relatively stable financial structure.
On November 5, Devon Energy reported its earnings results for the quarter, revealing an earnings per share (EPS) of $1.04, surpassing analysts’ consensus estimates of $0.93 by $0.11. The company achieved a net margin of 15.56% and a return on equity of 18.14%. Revenue for the quarter was reported at $4.00 billion, aligning closely with analysts’ predictions.
In addition to its financial performance, Devon Energy announced a quarterly dividend of $0.24 per share, payable on December 30, 2023. Shareholders of record as of December 15, 2023 will be eligible for this dividend, which reflects an annualized dividend of $0.96 and a dividend yield of 2.7%. The company’s current dividend payout ratio is 22.59%.
Devon Energy Corporation, headquartered in Oklahoma City, Oklahoma, is an independent oil and gas exploration and production company. It focuses on the development and marketing of hydrocarbons such as crude oil, natural gas liquids, and natural gas. The company employs various techniques for acquiring and optimizing onshore resource plays, aiming to generate production and cash flow effectively.
