Devon Energy Corporation (NYSE: DVN) stock fell -1.53% on Friday to $60.63 against a previous-day closing price of $61.57. With 14.98 million shares changed hands, the volume of the stock remained heavier than its average volume of 12.75 million shares. During the session, the Oil & Gas E&P company that operates in wider Energy sector, reached to the highest price of $62.20 whereas the lowest price it dropped to was $58.92. The 52-week range on DVN shows that it touched its highest point at $79.40 and its lowest point at $23.74 during that stretch. It currently has a 1-year price target of $77.07. With its current market cap of 37.93 billion, DVN has annualized dividend of $3.60 while the current yield stands at 5.94%. Beta for the stock currently stands at 2.58.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DVN was up-trending over the past week, with a rise of 6.82%, but this was up by 10.02% over a month. Three-month performance surged to 3.91% while six-month performance rose 19.89%. The stock gained 145.06% in the past year, while it has gained 37.64% so far this year. A look at the trailing 12-month EPS for DVN yields 5.34 with Next year EPS estimates of 9.41. For the next quarter, that number is 2.38. This implies an EPS growth rate of 161.70% for this year and 5.17% for next year. EPS is expected to grow by 27.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 32.10%.
Float and Shares Shorts:
At present, 656.00 million DVN shares are outstanding with a float of 644.00 million shares on hand for trading. On Jul 14, 2022, short shares totaled 14.45 million, which was 2.19% higher than short shares on Jun 14, 2022. In addition to Mr. David A. Hager as the firm’s Exec. Chairman, Mr. Richard E. Muncrief serves as its Pres, CEO & Director.
Through their ownership of 84.78% of DVN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 8.04% of DVN, in contrast to 46.90% held by mutual funds. Shares owned by individuals account for 35.80%. As the largest shareholder in DVN with 11.03% of the stake, The Vanguard Group, Inc. holds 72,813,962 shares worth 72,813,962. A second-largest stockholder of DVN, SSgA Funds Management, Inc., holds 41,885,581 shares, controlling over 6.35% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in DVN, holding 37,148,579 shares or 5.63% stake. With a 2.95% stake in DVN, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 19,454,738 shares are owned by the mutual fund manager. The SPDR Series – Energy Select Secto, which owns about 2.55% of DVN stock, is the second-largest Mutual Fund holder. It holds 16,858,797 shares valued at 929.09 million. Vanguard Mid Cap Index Fund holds 2.30% of the stake in DVN, owning 15,195,316 shares worth 837.41 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, DVN reported revenue of $5.63B and operating income of $2.58B. It generated $1.93B net income for the quarter, which came to $3.59B over the last twelve months. The EBITDA in the recently reported quarter was $3.10B and diluted EPS was $2.93. EBITDA for the full year was $6.66B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DVN since 32 analysts follow the stock currently. There are 16 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 12 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DVN analysts setting a high price target of $115.00 and a low target of $57.90, the average target price over the next 12 months is $77.85. Based on these targets, DVN could surge 89.68% to reach the target high and fall by -4.5% to reach the target low. Reaching the average price target will result in a growth of 28.4% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DVN will report FY 2022 earnings on 02/14/2023. Analysts have provided yearly estimates in a range of $11.32 being high and $7.92 being low. For DVN, this leads to a yearly average estimate of $9.00. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Devon Energy Corporation surprised analysts by $0.28 when it reported $2.59 EPS against a consensus estimate of $2.31. The surprise factor in the prior quarter was $0.13. Based on analyst estimates, the high estimate for the next quarter is $3.18 and the low estimate is $1.91. The average estimate for the next quarter is thus $2.40.
Summary of Insider Activity:
Insiders traded DVN stock several times over the past three months with 10 Buys and 7 Sells. In these transactions, 36,148 shares were bought while 72,316 shares were sold. The number of buy transactions has increased to 25 while that of sell transactions has risen to 62 over the past year. The total number of shares bought during that period was 795,997 while 1,076,994 shares were sold.