Devon Energy Co. (NYSE:DVN) Plans Dividend Increase – $1.27 Per Share

Devon Energy Co. (NYSE:DVNGet Rating) declared a quarterly dividend on Monday, May 2nd, Zacks reports. Investors of record on Monday, June 13th will be paid a dividend of 1.27 per share by the energy company on Thursday, June 30th. This represents a $5.08 dividend on an annualized basis and a yield of 7.79%. The ex-dividend date is Friday, June 10th. This is a boost from Devon Energy’s previous quarterly dividend of $1.00.

Devon Energy has increased its dividend payment by an average of 79.8% annually over the last three years and has increased its dividend annually for the last 5 consecutive years. Devon Energy has a dividend payout ratio of 50.6% meaning its dividend is sufficiently covered by earnings. Analysts expect Devon Energy to earn $8.92 per share next year, which means the company should continue to be able to cover its $4.00 annual dividend with an expected future payout ratio of 44.8%.

DVN stock traded up $0.91 on Wednesday, reaching $65.19. The company’s stock had a trading volume of 105,822 shares, compared to its average volume of 8,679,381. Devon Energy has a 52 week low of $23.02 and a 52 week high of $65.45. The company has a market capitalization of $43.05 billion, a P/E ratio of 12.06, a price-to-earnings-growth ratio of 0.14 and a beta of 2.60. The firm has a fifty day moving average of $59.51 and a two-hundred day moving average of $50.57. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.38 and a quick ratio of 1.38.

Devon Energy (NYSE:DVNGet Rating) last issued its quarterly earnings results on Monday, May 2nd. The energy company reported $1.88 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.75 by $0.13. Devon Energy had a return on equity of 26.76% and a net margin of 23.60%. During the same quarter last year, the company posted $0.45 earnings per share. As a group, equities analysts expect that Devon Energy will post 8.46 EPS for the current fiscal year.

A number of research firms have recently issued reports on DVN. StockNews.com lowered Devon Energy from a “buy” rating to a “hold” rating in a report on Wednesday. Bank of America downgraded shares of Devon Energy from a “buy” rating to a “neutral” rating and increased their target price for the stock from $50.00 to $57.00 in a research report on Monday, January 10th. Piper Sandler increased their target price on shares of Devon Energy from $67.00 to $80.00 and gave the stock an “overweight” rating in a research report on Thursday, April 7th. The Goldman Sachs Group downgraded shares of Devon Energy from a “buy” rating to a “neutral” rating and increased their target price for the stock from $46.00 to $52.00 in a research report on Friday, January 21st. Finally, Citigroup increased their target price on shares of Devon Energy from $39.00 to $57.00 in a research report on Thursday, January 20th. Six research analysts have rated the stock with a hold rating, nine have issued a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus target price of $64.68.

Devon Energy announced that its board has initiated a share buyback plan on Monday, May 2nd that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the energy company to buy up to 4.7% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

In other news, EVP Dennis C. Cameron sold 8,626 shares of Devon Energy stock in a transaction that occurred on Tuesday, February 22nd. The shares were sold at an average price of $53.68, for a total value of $463,043.68. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Clay M. Gaspar sold 30,000 shares of Devon Energy stock in a transaction that occurred on Wednesday, April 13th. The shares were sold at an average price of $63.75, for a total transaction of $1,912,500.00. Following the completion of the transaction, the chief operating officer now owns 765,202 shares of the company’s stock, valued at approximately $48,781,627.50. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 164,251 shares of company stock valued at $9,827,922. Corporate insiders own 0.80% of the company’s stock.

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Metropolitan Life Insurance Co NY grew its holdings in Devon Energy by 16.3% during the 4th quarter. Metropolitan Life Insurance Co NY now owns 71,539 shares of the energy company’s stock worth $3,151,000 after acquiring an additional 10,013 shares during the period. Cubist Systematic Strategies LLC grew its holdings in shares of Devon Energy by 292.1% in the 4th quarter. Cubist Systematic Strategies LLC now owns 61,553 shares of the energy company’s stock valued at $2,711,000 after buying an additional 45,853 shares during the period. Glenmede Trust Co. NA grew its holdings in shares of Devon Energy by 3.8% in the 4th quarter. Glenmede Trust Co. NA now owns 58,033 shares of the energy company’s stock valued at $2,555,000 after buying an additional 2,137 shares during the period. Allstate Corp acquired a new position in shares of Devon Energy in the 4th quarter valued at $2,317,000. Finally, NewEdge Advisors LLC grew its holdings in shares of Devon Energy by 176.4% in the 4th quarter. NewEdge Advisors LLC now owns 49,884 shares of the energy company’s stock valued at $2,197,000 after buying an additional 31,834 shares during the period. 87.01% of the stock is owned by hedge funds and other institutional investors.

Devon Energy Company Profile (Get Rating)

Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates approximately 5,134 gross wells. Devon Energy Corporation was incorporated in 1971 and is headquartered in Oklahoma City, Oklahoma.

See Also

Dividend History for Devon Energy (NYSE:DVN)

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