Devon Energy (NYSE:DVN) Shares Gap Up Following Better-Than-Expected Earnings

Devon Energy Co. (NYSE:DVN - Get Free Report) shares gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. 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 changing hands.

The energy company reported $1.16 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.00 by $0.16. The company had revenue of $4.40 billion for the quarter, compared to analyst estimates of $4.25 billion. Devon Energy had a net margin of 18.14% and a return on equity of 22.52%.

Devon Energy Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Friday, March 14th will be paid a dividend of $0.24 per share. This represents a $0.96 dividend on an annualized basis and a dividend yield of 2.56%. This is a positive change from Devon Energy's previous quarterly dividend of $0.22. The ex-dividend date is Friday, March 14th. Devon Energy's dividend payout ratio is presently 21.05%.

Wall Street Analyst Weigh In

DVN has been the topic of a number of recent research reports. Sanford C. Bernstein upgraded shares of Devon Energy from a "market perform" rating to an "outperform" rating and set a $45.00 target price on the stock in a research note on Wednesday, January 15th. Mizuho cut their target price on shares of Devon Energy from $51.00 to $47.00 and set an "outperform" rating on the stock in a research note on Monday, December 16th. JPMorgan Chase & Co. lowered shares of Devon Energy from an "overweight" rating to a "neutral" rating and set a $43.00 target price on the stock. in a research note on Thursday, December 5th. Barclays upped their target price on shares of Devon Energy from $43.00 to $44.00 and gave the stock an "equal weight" rating in a research note on Thursday. Finally, Wells Fargo & Company cut their target price on shares of Devon Energy from $49.00 to $43.00 and set an "overweight" rating on the stock in a research note on Tuesday, December 17th. Ten investment analysts have rated the stock with a hold rating and fourteen have given a buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $48.83.

Institutional Investors Weigh In On Devon Energy

Several large investors have recently modified their holdings of the company. Creative Planning grew its position in Devon Energy by 33.6% in the 3rd quarter. Creative Planning now owns 132,206 shares of the energy company's stock valued at $5,172,000 after buying an additional 33,249 shares during the last quarter. Sequoia Financial Advisors LLC grew its position in Devon Energy by 4.6% in the 3rd quarter. Sequoia Financial Advisors LLC now owns 35,711 shares of the energy company's stock valued at $1,397,000 after buying an additional 1,564 shares during the last quarter. Leo Wealth LLC purchased a new position in Devon Energy in the 3rd quarter valued at $202,000. Private Advisor Group LLC grew its position in Devon Energy by 15.1% in the 3rd quarter. Private Advisor Group LLC now owns 96,216 shares of the energy company's stock valued at $3,764,000 after buying an additional 12,607 shares during the last quarter. Finally, Courier Capital LLC grew its position in Devon Energy by 6.6% in the 3rd quarter. Courier Capital LLC now owns 17,305 shares of the energy company's stock valued at $677,000 after buying an additional 1,079 shares during the last quarter. 69.72% of the stock is owned by institutional investors and hedge funds.

Devon Energy Trading Down 2.8 %

The business's 50-day moving average is $34.47 and its two-hundred day moving average is $38.37. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.01 and a current ratio of 1.04. The stock has a market capitalization of $24.62 billion, a PE ratio of 8.22, a price-to-earnings-growth ratio of 1.17 and a beta of 1.98.

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.