Fintel reports that on June 13, 2023, Goldman Sachs upgraded their outlook for Devon Energy (NYSE:DVN) from Neutral to Buy.

Analyst Price Forecast Suggests 30.79% Upside

As of June 1, 2023, the average one-year price target for Devon Energy is 64.61. The forecasts range from a low of 49.49 to a high of $86.10. The average price target represents an increase of 30.79% from its latest reported closing price of 49.40.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Devon Energy is 20,416MM, an increase of 12.32%. The projected annual non-GAAP EPS is 9.19.

Devon Energy Declares $0.72 Dividend

On May 8, 2023 the company declared a regular quarterly dividend of $0.72 per share ($2.88 annualized). Shareholders of record as of June 15, 2023 will receive the payment on June 30, 2023. Previously, the company paid $0.20 per share.

At the current share price of $49.40 / share, the stock’s dividend yield is 5.83%.

Looking back five years and taking a sample every week, the average dividend yield has been 4.70%, the lowest has been 0.71%, and the highest has been 11.23%. The standard deviation of yields is 3.08 (n=237).

The current dividend yield is 0.37 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.48. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 9.34%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 2245 funds or institutions reporting positions in Devon Energy. This is a decrease of 111 owner(s) or 4.71% in the last quarter. Average portfolio weight of all funds dedicated to DVN is 0.37%, a decrease of 9.38%. Total shares owned by institutions decreased in the last three months by 5.28% to 530,190K shares. The put/call ratio of DVN is 0.75, indicating a bullish outlook.

What are Other Shareholders Doing?

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 20,235K shares representing 3.15% ownership of the company. In it’s prior filing, the firm reported owning 19,875K shares, representing an increase of 1.78%. The firm decreased its portfolio allocation in DVN by 22.65% over the last quarter.

XLE – The Energy Select Sector SPDR Fund holds 18,787K shares representing 2.93% ownership of the company. In it’s prior filing, the firm reported owning 18,922K shares, representing a decrease of 0.72%. The firm decreased its portfolio allocation in DVN by 12.15% over the last quarter.

VIMSX – Vanguard Mid-Cap Index Fund Investor Shares holds 15,275K shares representing 2.38% ownership of the company. In it’s prior filing, the firm reported owning 15,214K shares, representing an increase of 0.40%. The firm decreased its portfolio allocation in DVN by 20.03% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 15,253K shares representing 2.38% ownership of the company. In it’s prior filing, the firm reported owning 15,112K shares, representing an increase of 0.93%. The firm decreased its portfolio allocation in DVN by 22.98% over the last quarter.

Geode Capital Management holds 14,145K shares representing 2.20% ownership of the company. In it’s prior filing, the firm reported owning 13,321K shares, representing an increase of 5.82%. The firm decreased its portfolio allocation in DVN by 19.09% over the last quarter.

Devon Energy Background Information
(This description is provided by the company.)

Devon Energy Corporation is an American energy company engaged in hydrocarbon exploration in the American market. It is organized in Delaware and its corporate operative headquarters are in the 50-story Devon Energy Center in Oklahoma City, Oklahoma.

Key filings for this company:

• Annual Report – DVN 10-K 2019

This article originally appeared on Fintel

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