Devon Energy (NYSE:DVN) Downgraded to “Hold” at Zacks Investment Research

Devon Energy (NYSE:DVN) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Friday, Zacks.com reports. They presently have a $32.00 target price on the energy company’s stock. Zacks Investment Research‘s target price would indicate a potential upside of 6.35% from the stock’s previous close.

According to Zacks, “Devon Energy targets strong oil production over the long term and anticipates solid contribution from the Delaware Basin. The company’s operation in Delaware has expanded due to its all-stock merger deal with WPX Energy. Devon’s divestiture of Canadian and Barnett Shale gas assets will allow it to focus on its holdings in five high-quality oil-rich U.S. basins, and boost production from its domestic holdings. It has ample liquidity to meet near-term debt obligations. In the past year, Devon’s shares have outperformed the industry. However, the company operates in a competitive industry, wherein a few operators are in a secure position due to stronger financial capabilities. Limited control over some of its properties and regulations is a headwind. Volatile commodity prices and how it will trade in future can impact business.”

A number of other analysts have also recently issued reports on DVN. The Goldman Sachs Group cut Devon Energy from a “conviction-buy” rating to a “buy” rating in a research report on Thursday, September 9th. Royal Bank of Canada reissued a “hold” rating and set a $35.00 price objective on shares of Devon Energy in a research report on Wednesday, July 7th. Sanford C. Bernstein raised Devon Energy from a “market perform” rating to an “outperform” rating and lifted their price objective for the company from $27.00 to $37.00 in a research report on Monday, June 21st. Morgan Stanley lifted their price objective on Devon Energy from $32.00 to $34.00 and gave the company an “equal weight” rating in a research report on Monday, August 23rd. Finally, Wells Fargo & Company lifted their price objective on Devon Energy from $37.00 to $38.00 and gave the company an “overweight” rating in a research report on Monday, August 23rd. Three investment analysts have rated the stock with a hold rating, eighteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Buy” and a consensus target price of $30.38.

Shares of DVN stock traded down $0.22 on Friday, reaching $30.09. 122,338 shares of the company’s stock traded hands, compared to its average volume of 11,882,860. Devon Energy has a 12-month low of $7.73 and a 12-month high of $31.99. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.00 and a current ratio of 1.00. The company has a market capitalization of $20.37 billion, a P/E ratio of 167.18, a price-to-earnings-growth ratio of 0.32 and a beta of 3.37. The business’s 50 day moving average price is $27.56 and its two-hundred day moving average price is $26.11.

Devon Energy (NYSE:DVN) last issued its quarterly earnings results on Tuesday, August 3rd. The energy company reported $0.60 earnings per share for the quarter, beating analysts’ consensus estimates of $0.53 by $0.07. Devon Energy had a return on equity of 11.95% and a net margin of 4.21%. The business had revenue of $2.42 billion for the quarter, compared to the consensus estimate of $2.38 billion. Research analysts predict that Devon Energy will post 2.78 earnings per share for the current year.

A number of institutional investors and hedge funds have recently modified their holdings of DVN. Harvest Fund Management Co. Ltd bought a new stake in shares of Devon Energy in the 1st quarter valued at approximately $31,000. Bbva USA bought a new stake in shares of Devon Energy in the 2nd quarter valued at approximately $43,000. Rockbridge Investment Management LCC bought a new stake in shares of Devon Energy in the 2nd quarter valued at approximately $45,000. Blume Capital Management Inc. grew its stake in shares of Devon Energy by 50.9% in the 1st quarter. Blume Capital Management Inc. now owns 1,735 shares of the energy company’s stock valued at $38,000 after purchasing an additional 585 shares during the period. Finally, O Shaughnessy Asset Management LLC grew its stake in shares of Devon Energy by 243.9% in the 1st quarter. O Shaughnessy Asset Management LLC now owns 1,967 shares of the energy company’s stock valued at $43,000 after purchasing an additional 1,395 shares during the period. Hedge funds and other institutional investors own 86.42% of the company’s stock.

Devon Energy Company Profile

Devon Energy Corp. engages in the exploration, development, and production of oil and natural gas properties. It develops and operates Delaware Basin, Eagle Ford, Heavy Oil, Baarnett Shale, STACK, and Rockies Oil. The company was founded by J. Larry Nichols and John W. Nichols in 1971 and is headquartered in Oklahoma City, OK.

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