4. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 51
Dividend Yield as of May 5: 7.57%
Devon Energy Corporation (NYSE:DVN) is an Oklahoma-based energy company specializing in the exploration and production of oil, natural gas, and natural gas liquids in the United States. Devon Energy Corporation (NYSE:DVN)’s dividend yield on May 5 stood at 7.57%.
Devon Energy Corporation (NYSE:DVN) announced its financial results for the first fiscal quarter of 2022 on May 5, posting earnings per share of $1.88, exceeding market estimates by $0.12. Revenue for the period increased 116.35% year-over-year to $3.81 billion, surpassing analysts’ predictions by $242.30 million.
Devon Energy Corporation (NYSE:DVN) declared on May 2 a $1.27 per share quarterly dividend, a 27% increase from its last dividend of $1.00. The dividend is distributable on June 30, to shareholders of record on June 13. The company also raised its share repurchase authorization by 25% to $2 billion. By April end, Devon Energy Corporation (NYSE:DVN) had bought back 19.1 million shares valued at $891 million.
On May 4, Truist analyst Neal Dingmann raised the price target on Devon Energy Corporation (NYSE:DVN) to $100 from $91 and kept a Buy rating on the shares. The analyst observed that Devon Energy Corporation (NYSE:DVN) will continue its multi-pronged shareholder return scheme of increasing dividends and “meaningful buybacks”. He also added that the quarterly free cash flows are expected to reach $2 billion. The company’s present position of approximately 4,000 low-risk/high-return locations paired with almost 2,500 incremental operated locations could result in significant upside, the analyst told investors.
In the fourth quarter of 2021, 51 hedge funds were long Devon Energy Corporation (NYSE:DVN), up from 48 funds in the preceding quarter. The total stakes held in Q4 amounted to $1.74 billion, compared to $1.40 billion in the last quarter. Rajiv Jain’s GQG Partners is the biggest shareholder of the company, with a position worth roughly $639 million.
Here is what GoodHaven Capital Management has to say about Devon Energy Corporation (NYSE:DVN) in their Q4 2020 investor letter:
“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”
