Investors Buy High Volume of Call Options on Devon Energy (NYSE:DVN)

Devon Energy Corporation (NYSE:DVN) was the recipient of some unusual options trading activity on Tuesday. Investors acquired 79,300 call options on the company. This is an increase of 112% compared to the typical daily volume of 37,332 call options.

Wall Street Analyst Weigh In

DVN has been the topic of a number of research analyst reports. Sanford C. Bernstein boosted their price objective on shares of Devon Energy from $42.00 to $59.00 and gave the company an “outperform” rating in a report on Monday, April 13th. Wolfe Research boosted their price objective on shares of Devon Energy from $64.00 to $65.00 and gave the company an “outperform” rating in a report on Monday, April 6th. Wells Fargo & Company boosted their price objective on shares of Devon Energy from $66.00 to $68.00 and gave the company an “overweight” rating in a report on Monday, May 18th. Royal Bank Of Canada upped their price target on shares of Devon Energy from $46.00 to $59.00 and gave the company a “sector perform” rating in a report on Wednesday, April 8th. Finally, Argus upped their price target on shares of Devon Energy from $41.00 to $51.00 and gave the company a “buy” rating in a report on Thursday, February 26th. Two research analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $57.89.

Devon Energy Price Performance

NYSE:DVN opened at $46.31 on Thursday. Devon Energy has a one year low of $31.32 and a one year high of $52.71. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.94 and a current ratio of 1.01. The firm has a market cap of $28.78 billion, a price-to-earnings ratio of 12.90 and a beta of 0.37. The firm’s fifty day moving average is $47.81 and its two-hundred day moving average is $42.67.

Devon Energy (NYSE:DVN) last posted its quarterly earnings results on Tuesday, May 5th. The energy company reported $1.04 EPS for the quarter, missing the consensus estimate of $1.06 by ($0.02). Devon Energy had a net margin of 13.71% and a return on equity of 15.22%. The business had revenue of $3.81 billion during the quarter, compared to analysts’ expectations of $4.34 billion. During the same period in the previous year, the company posted $0.82 earnings per share. Devon Energy’s revenue for the quarter was down 14.5% compared to the same quarter last year. Research analysts expect that Devon Energy will post 4.43 EPS for the current year.

Devon Energy Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend is Monday, June 15th. This is an increase from Devon Energy’s previous quarterly dividend of $0.24. Devon Energy’s dividend payout ratio is currently 26.74%.

Devon Energy News Roundup

Here are the key news stories impacting Devon Energy this week:

• Positive Sentiment: Barclays reiterated its Buy rating on Devon Energy, reinforcing the view that analysts still see upside in the stock. Barclays Sticks to Its Buy Rating for Devon Energy (DVN)
• Positive Sentiment: Unusual options activity showed investors buying far more call contracts than normal, suggesting some traders are positioning for a move higher in DVN.
• Positive Sentiment: A note on Devon’s stock becoming a trending name on Zacks adds to the recent increase in investor attention and speculation around the shares. Devon Energy Corporation (DVN) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Capital One trimmed its price target on Devon Energy to $61 from $63, but kept an Overweight rating, leaving the broader bullish view intact. Capital One adjusts price target on Devon Energy to 61 from 63, maintains overweight rating
• Neutral Sentiment: Coverage about Devon’s Marcellus assets highlights market speculation around the company’s portfolio, but does not point to a confirmed corporate action yet. Why Is Devon Energy Corporation (NYSE:DVN) Drawing Attention Amid Marcellus Asset Speculation?
• Negative Sentiment: Yahoo Finance reported insider selling of about $4.7 million in Devon stock, which can sometimes signal caution about near-term prospects. Devon Energy Insiders Sell US$4.7m Of Stock, Possibly Signalling Caution

Insiders Place Their Bets

In other news, EVP Jeffrey L. Ritenour sold 70,029 shares of the business’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $46.66, for a total transaction of $3,267,553.14. Following the sale, the executive vice president directly owned 428,452 shares of the company’s stock, valued at $19,991,570.32. The trade was a 14.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Adam M. Vela sold 24,342 shares of the business’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $47.21, for a total transaction of $1,149,185.82. Following the sale, the senior vice president directly owned 130,540 shares in the company, valued at $6,162,793.40. This trade represents a 15.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 4.58% of the stock is owned by insiders.

Institutional Investors Weigh In On Devon Energy

Hedge funds have recently modified their holdings of the company. Wedge Capital Management L L P NC purchased a new stake in shares of Devon Energy during the 4th quarter worth about $9,931,000. Allianz Asset Management GmbH boosted its stake in shares of Devon Energy by 4.3% during the 3rd quarter. Allianz Asset Management GmbH now owns 833,155 shares of the energy company’s stock worth $29,210,000 after acquiring an additional 33,974 shares in the last quarter. Investors Research Corp boosted its stake in shares of Devon Energy by 13,787.5% during the 4th quarter. Investors Research Corp now owns 27,775 shares of the energy company’s stock worth $1,017,000 after acquiring an additional 27,575 shares in the last quarter. Philip James Wealth Mangement LLC raised its position in shares of Devon Energy by 43.8% during the 4th quarter. Philip James Wealth Mangement LLC now owns 161,368 shares of the energy company’s stock worth $5,911,000 after purchasing an additional 49,115 shares during the last quarter. Finally, Canada Post Corp Registered Pension Plan raised its position in shares of Devon Energy by 298.1% during the 3rd quarter. Canada Post Corp Registered Pension Plan now owns 42,351 shares of the energy company’s stock worth $1,585,000 after purchasing an additional 31,713 shares during the last quarter. 69.72% of the stock is owned by hedge funds and other institutional investors.

Devon Energy Company Profile

Devon Energy Corporation (NYSE: DVN) is an independent oil and gas exploration and production company headquartered in Oklahoma City, Oklahoma. The company focuses on the exploration, development, production and marketing of hydrocarbons, including crude oil, natural gas liquids (NGLs) and natural gas. Devon operates as an upstream energy company that acquires, evaluates and develops onshore resource plays using a combination of drilling, completion and production optimization techniques.

Core business activities include identifying and developing energy reserves, operating well programs and managing reservoir performance to generate production and cash flow.