5 Energy Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates

4. Devon Energy Corporation (NYSE:DVN)

Caxton Associates’ Stake Value: $2,362,000

Percentage of Caxton Associates’ 13F Portfolio: 0.26%

Number of Hedge Fund Holders: 48

Devon Energy Corporation (NYSE:DVN), an Oklahoma-based hydrocarbon exploration company, is one of the best energy stocks to buy according to Bruce Kovner’s Caxton Associates. The hedge fund elevated its position in Devon Energy Corporation (NYSE:DVN) by 97% in the third quarter, owning 66,506 shares of the company, valued at $2.36 million. 

In the Q3 earnings report of Devon Energy Corporation (NYSE:DVN), published on November 2, the company announced an EPS of $1.08, exceeding estimates by $0.15. Revenue for the period gained 224.84% from the prior-year quarter, totaling $3.47 billion, outperforming estimates by $546.05 million. 

Truist analyst Neal Dingmann on December 28 kept a Buy rating and a $60 price target on Devon Energy Corporation (NYSE:DVN), stating that the company strikes the “right balance” in free cash flow maximization and shareholder returns, which is reflected by its number one ranking in the S&P 500 index year-to-date.

Of the 867 hedge funds tracked by Insider Monkey in the third quarter, Rajiv Jain’s GQG Partners is the largest Devon Energy Corporation (NYSE:DVN) stakeholder, with 13.9 million shares of the company, worth approximately $494 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.”