Devon Energy (NYSE:DVN) Shares Gap Up After Strong Earnings

Devon Energy Co. (NYSE:DVN) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $34.88, but opened at $36.20. Devon Energy shares last traded at $37.93, with a volume of 3,647,664 shares traded.

The energy company reported $1.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.00 by $0.16. The firm had revenue of $4.40 billion during the quarter, compared to analyst estimates of $4.25 billion. Devon Energy had a return on equity of 24.73% and a net margin of 21.71%.

Devon Energy Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 31st. Shareholders of record on Friday, March 14th will be given a $0.24 dividend. This is a positive change from Devon Energy’s previous quarterly dividend of $0.22. The ex-dividend date of this dividend is Friday, March 14th. This represents a $0.96 annualized dividend and a yield of 2.55%. Devon Energy’s payout ratio is currently 16.33%.

Analysts Set New Price Targets

DVN has been the topic of a number of research reports. StockNews.com raised shares of Devon Energy from a “sell” rating to a “hold” rating in a report on Friday, January 3rd. Wolfe Research upgraded Devon Energy from a “peer perform” rating to an “outperform” rating and set a $45.00 target price on the stock in a research note on Friday, January 3rd. Piper Sandler increased their price target on Devon Energy from $53.00 to $54.00 and gave the stock an “overweight” rating in a research note on Wednesday, January 29th. Truist Financial lowered their price objective on Devon Energy from $43.00 to $42.00 and set a “hold” rating on the stock in a research note on Monday, January 13th. Finally, Raymond James increased their target price on shares of Devon Energy from $53.00 to $54.00 and gave the stock an “outperform” rating in a research report on Thursday, January 23rd. Ten equities research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $49.26.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of DVN. Hurley Capital LLC purchased a new stake in Devon Energy during the fourth quarter valued at about $26,000. Accredited Wealth Management LLC purchased a new position in shares of Devon Energy during the 4th quarter valued at about $28,000. Capital Performance Advisors LLP bought a new stake in Devon Energy in the 3rd quarter worth approximately $35,000. Cromwell Holdings LLC boosted its stake in Devon Energy by 98.0% in the fourth quarter. Cromwell Holdings LLC now owns 1,208 shares of the energy company’s stock worth $40,000 after buying an additional 598 shares in the last quarter. Finally, Sierra Ocean LLC bought a new position in Devon Energy during the fourth quarter valued at approximately $43,000. 69.72% of the stock is currently owned by institutional investors.

Devon Energy Price Performance

The stock has a market capitalization of $24.69 billion, a PE ratio of 6.97, a P/E/G ratio of 1.08 and a beta of 1.98. The company has a debt-to-equity ratio of 0.61, a current ratio of 1.11 and a quick ratio of 1.01. The firm’s 50 day simple moving average is $34.31 and its 200 day simple moving average is $38.40.

About Devon Energy

Devon Energy Corporation, an independent energy company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates in Delaware, Eagle Ford, Anadarko, Williston, and Powder River Basins. The company was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.