Analysts Flashing a Green Light for Devon Energy Corporation (DVN)?

Analysts at Stephens, assumed coverage of Devon Energy Corporation (NYSE:DVN) with Overweight recommendation, according to their opinion released on December 06.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Devon Energy Corporation (NYSE:DVN)’s prospects. The earliest insider trade took place on 08/21/2018. Henry Robert H. parted with a total of 5.6 thousand shares of company at average share price of $42.14. The total for the sales was set at $235.98 thousand. After this transaction, the Director account balance stood at 9.7 thousand shares. The stock lost -34.15 percent since that insider sale. On 06/11/2018, Taylor Lyndon C, EVP GENERAL COUNSEL, sold 18.36 thousand shares at a price per share of $42.09. This removed 772.65 thousand shares from the insider’s fortune and the stock saw a -34.07 percent retreat in value since the news became public. This transaction left 95.22 thousand shares in the EVP GENERAL COUNSEL account. On 06/07/2018, Director Bethancourt John E performed a purchase transaction worth $502.8 thousand. This purchase at $41.9 each has added 12 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -33.77 percent decrease since the transaction was reported. The insider now is left with 56.47 thousand shares remaining in the account. Taylor Lyndon C, who performs the EVP GENERAL COUNSEL job, sold 12.8 thousand shares for $490.04 thousand. The disposal occurred on 12/14/2017 was priced at $38.29 per share. The share price plunged -27.53 percent since the reporting date. Taylor Lyndon C now left with a stake of 55.14 thousand DVN stock worth $1.53 million after the insider selling.

Devon Energy Corporation (DVN) is expected to jump by 72.68 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $65-month high price target. This represents a whopping 134.23 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $48, which represents a return potential of 72.97 percent when compared to the closing price of the stock of $27.75 on Thursday, December 06. The lowest price target for the stock is $30 — slightly more than 8.11 percent from DVN’s current share price.

The shares are currently floating around the first support level of $26.98. Below this, the next support is placed in the zone of $26.21. Till the time, the DVN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 36.96 on daily chart, which may remain a cause for comfort. If the price breaks below $26.21 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $28.18 mark may result into a pull-back move towards $28.61 level.

DVN shares dropped -0.42 points or -1.49 percent on Thursday to $27.75 with a heavy trade volume of 9.747 million shares. After opening the session at $27.26, the shares went as high as $27.84 and as low as $26.64, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $12.9 billion and now has 466.12 million shares outstanding. Devon Energy Corporation (DVN) stock has lost -16.16 percent of market value in 21 trading days.

DVN stock has a trailing 3-year beta of 2.31, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$1.52 a share in the trailing twelve months. The stock’s value has fallen -32.97 percent year to date (YTD) against a decline of -27.7 percent in 12 month’s time. The company’s shares still trade -40.38 percent away from its 1-year high of $46.54 and 7.27 percent up from 52-week low of $25.87. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Devon Energy Corporation (DVN) are trading at a P/E ratio of 8.14 times earnings reported for the past 12 months. The industry DVN operates in has an average P/E of 14.32. Its P/E ratio went as low as 15.67X and as high as 15.67 over the 5-year span. Further, it is sporting a 1.17 on the Price-to-Sales ratio. Compare this with the industry average P/S of 99.94. 79 percent is the gross profit margin for Devon Energy Corporation and operating margin sits at -5.8 percent. Along with this, the net profit margin is 14.5 percent.

DVN will be showing off its Q4 earnings on February 20. Analysts are forecasting revenue to suffer decline of -40.6 percent to $2.36B in the next fiscal quarter, while earnings are seen soaring by nearly 7.89 percent to $0.41 per share. History has shown that shares in Devon Energy Corporation have gone up on 18 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.65 per share, better than the $0.42, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.58B, better than the $2.16B analysts expected. Earnings are estimated to increase by 188.3 percent this year, 40.16 percent next year and continue to increase by 63.37 percent annually for the next 5 years.