Devon Energy Corporation (DVN) Rating Lowered to Sell at Zacks Investment Research
Zacks Investment Research cut shares of Devon Energy Corporation (NYSE:DVN) from a hold rating to a sell rating in a report released on Friday morning.
According to Zacks, “Loss in Devon’s shares was wider than the broader industry in the last three months. The highly competitive nature of the oil and gas industry has always been a headwind and limited control over some properties controlled by third parties could have an adverse impact on Devon’s performance. Further, its profitability is subject to oil, natural gas and NGL prices, which are volatile and cyclical in nature. However, Devon’s deep and diversified portfolio, primarily composed of unconventional resources, holds significant long-term growth potential. Thanks to solid oil production and performance from its domestic oil plays, the company is well poised to deliver 13–17% growth in U.S. oil production in 2017 from 2016 levels. Devon will continue with its cost-savings initiative in 2017 as well.”
A number of other analysts have also recently weighed in on the company. TheStreet raised Devon Energy Corporation from a d+ rating to a c rating in a research report on Tuesday, May 2nd. Stifel Nicolaus initiated coverage on Devon Energy Corporation in a research report on Wednesday, April 12th. They issued a buy rating and a $73.00 price target for the company. They noted that the move was a valuation call. Scotiabank set a $54.00 price target on Devon Energy Corporation and gave the stock a buy rating in a research report on Monday, March 27th. Credit Suisse Group boosted their price target on Devon Energy Corporation from $63.00 to $64.00 and gave the stock an outperform rating in a research report on Thursday, May 4th. Finally, Royal Bank Of Canada set a $53.00 price objective on Devon Energy Corporation and gave the stock a buy rating in a research note on Monday, May 29th. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company. Devon Energy Corporation has a consensus rating of Buy and an average target price of $49.05.
Devon Energy Corporation (NYSE:DVN) traded up 0.03% during trading on Friday, hitting $31.36. The stock had a trading volume of 4,574,909 shares. The firm’s 50 day moving average is $33.89 and its 200 day moving average is $40.97. Devon Energy Corporation has a 1-year low of $28.79 and a 1-year high of $50.69. The firm has a market cap of $16.49 billion, a price-to-earnings ratio of 53.24 and a beta of 2.16.
Devon Energy Corporation (NYSE:DVN) last released its quarterly earnings data on Tuesday, May 2nd. The energy company reported $0.41 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.40 by $0.01. The firm had revenue of $3.55 billion during the quarter, compared to analysts’ expectations of $2.98 billion. Devon Energy Corporation had a return on equity of 4.25% and a net margin of 2.34%. On average, analysts anticipate that Devon Energy Corporation will post $1.75 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 29th. Stockholders of record on Friday, September 15th will be paid a dividend of $0.06 per share. The ex-dividend date of this dividend is Thursday, September 14th. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.77%. Devon Energy Corporation’s dividend payout ratio is 43.64%.
In other news, Director Robert A. Mosbacher, Jr. sold 800 shares of the stock in a transaction dated Friday, April 21st. The shares were sold at an average price of $39.18, for a total transaction of $31,344.00. Following the completion of the transaction, the director now directly owns 23,308 shares in the company, valued at approximately $913,207.44. The transaction was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 0.98% of the company’s stock.
Large investors have recently modified their holdings of the stock. Louisiana State Employees Retirement System increased its stake in shares of Devon Energy Corporation by 1.2% in the second quarter. Louisiana State Employees Retirement System now owns 32,600 shares of the energy company’s stock valued at $1,042,000 after buying an additional 400 shares during the period. Jolley Asset Management LLC increased its stake in shares of Devon Energy Corporation by 15,900.0% in the second quarter. Jolley Asset Management LLC now owns 8,000 shares of the energy company’s stock valued at $256,000 after buying an additional 7,950 shares during the period. Foundation Resource Management Inc. increased its stake in shares of Devon Energy Corporation by 4.9% in the second quarter. Foundation Resource Management Inc. now owns 39,708 shares of the energy company’s stock valued at $1,269,000 after buying an additional 1,866 shares during the period. LS Investment Advisors LLC increased its stake in shares of Devon Energy Corporation by 10.9% in the second quarter. LS Investment Advisors LLC now owns 17,646 shares of the energy company’s stock valued at $564,000 after buying an additional 1,740 shares during the period. Finally, Headinvest LLC increased its stake in shares of Devon Energy Corporation by 3.7% in the second quarter. Headinvest LLC now owns 25,192 shares of the energy company’s stock valued at $805,000 after buying an additional 890 shares during the period. Institutional investors and hedge funds own 77.09% of the company’s stock.
Devon Energy Corporation Company Profile
Devon Energy Corporation is an independent energy company. The Company also controls EnLink Midstream Partners, L.P. (EnLink). The Company’s segments include U.S., Canada and EnLink. The Company is engaged primarily in the exploration, development and production of oil, natural gas and natural gas liquids (NGLs).
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