Peeling Back The Layers: Exploring Devon Energy Through Analyst Insights
Devon Energy (NYSE:DVN) has been analyzed by 18 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 8 | 8 | 2 | 0 | 0 |
| Last 30D | 1 | 2 | 1 | 0 | 0 |
| 1M Ago | 1 | 1 | 0 | 0 | 0 |
| 2M Ago | 1 | 1 | 0 | 0 | 0 |
| 3M Ago | 5 | 4 | 1 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $61.67, with a high estimate of $69.00 and a low estimate of $50.00. This current average has increased by 5.26% from the previous average price target of $58.59.
Breaking Down Analyst Ratings: A Detailed Examination
The analysis of recent analyst actions sheds light on the perception of Devon Energy by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Biju Perincheril | Susquehanna | Maintains | Positive | $65.00 | $65.00 |
| Neal Dingmann | Truist Securities | Lowers | Buy | $64.00 | $67.00 |
| Scott Hanold | RBC Capital | Maintains | Sector Perform | $57.00 | $57.00 |
| Devin McDermott | Morgan Stanley | Raises | Overweight | $54.00 | $52.00 |
| Arun Jayaram | JP Morgan | Raises | Overweight | $64.00 | $62.00 |
| Noah Hungness | B of A Securities | Announces | Buy | $64.00 | - |
| Mark Lear | Piper Sandler | Raises | Overweight | $61.00 | $60.00 |
| Nitin Kumar | Mizuho | Raises | Buy | $61.00 | $57.00 |
| Scott Hanold | RBC Capital | Raises | Sector Perform | $57.00 | $55.00 |
| Neal Dingmann | Truist Securities | Lowers | Buy | $67.00 | $69.00 |
| Nitin Kumar | Mizuho | Raises | Buy | $57.00 | $53.00 |
| Derrick Whitfield | Stifel | Raises | Buy | $66.00 | $65.00 |
| Neal Dingmann | Truist Securities | Raises | Buy | $69.00 | $66.00 |
| Biju Perincheril | Susquehanna | Raises | Positive | $65.00 | $52.00 |
| Mark Lear | Piper Sandler | Raises | Overweight | $60.00 | $59.00 |
| Devin McDermott | Morgan Stanley | Raises | Overweight | $50.00 | $49.00 |
| Scott Gruber | Citigroup | Raises | Buy | $62.00 | $55.00 |
| Paul Cheng | Scotiabank | Raises | Sector Outperform | $67.00 | $53.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Devon Energy. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Devon Energy compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of Devon Energy's stock. This analysis reveals shifts in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Devon Energy's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Devon Energy analyst ratings.
Unveiling the Story Behind Devon Energy
Devon Energy is an oil and gas producer with acreage in several top US shale plays. While roughly two thirds of its production comes from the Permian Basin, it also holds a meaningful presence in the Anadarko, Eagle Ford, and Bakken basins. At the end of 2023, Devon reported net proved reserves of 1.8 billion barrels of oil equivalent. Net production averaged roughly 658,000 barrels of oil equivalent per day in 2023 at a ratio of 73% oil and natural gas liquids and 27% natural gas.
Financial Insights: Devon Energy
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Devon Energy's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -5.94%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 16.57%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Devon Energy's ROE excels beyond industry benchmarks, reaching 4.92%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Devon Energy's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.41%, the company showcases efficient use of assets and strong financial health.
Debt Management: Devon Energy's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.53, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
What Are Analyst Ratings?
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.