Technicals Say Devon Energy Corporation (DVN) Is Worth Holding


As of Thursday close, Devon Energy Corporation’s (NYSE:DVN) stock was down -$1.8, moving down -3.62 percent to $47.87. The average number of shares traded per day over the past five days has been 7,875,060 shares. 3 times new highs have been achieved over the past 5 days, with a -$0.41 fall in that time frame. In the last twenty days, the average volume was 8,268,215, while in the previous 50 days, it was 8,457,692.

Since last month, DVN stock retreated -8.30%. Shares of the company fell to $46.05 on 05/16/23, the lowest level in the past month. A 52-week high of $76.30 was reached on 01/27/23 after having rallying from a 52-week low of $44.03. Since the beginning of this year, DVN’s stock price has dropped by -21.09% or -$13.64, and marked a new high 8 times. However, the stock has declined by -37.26% since its 52-week high.

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DVN stock investors should be aware that Devon Energy Corporation (DVN) stock had its last reported insider trading activity 21 days ago on May 05. CAMERON DENNIS C, the EVP and General Counsel of the company, disposed of 8,292 shares for $49.97 on May 05. It resulted in a $414,351 divestment by the insider. Gaspar Clay M added 20,000 shares at an average price of $49.98 on Mar 14. The insider now owns 477,032 shares following the transaction. On Mar 14, President and CEO Muncrief Richard E bought 7,500 shares at $50.30 apiece. The transaction was valued at $377,250.

Valuation Metrics

Right now, Devon Energy Corporation (DVN) has a P/E ratio of about 5.22. The stock’s beta is 2.37. Besides these, the trailing price-to-sales (P/S) ratio of 1.57, the price-to-book (PB) ratio of 2.81.

The latest dividend of $0.72 per share was paid out, which is -19.1% less than last year’s $0.89. On Monday May 8 2023, a $0.17 dividend decrease was announced.

Financial Health

In the three months ended March 30, Devon Energy Corporation’s quick ratio stood at 1.00, while its current ratio was 1.10, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 0.59, and the total debt-to-equity ratio was 0.61. On the profitability front, the trailing twelve-month gross margin is 56.00% percent. In the year ended March 30, EBITDA margin amounted to 54.66%, whereas operating margins totaled 41.70%. Based on annual data, DVN earned $7.99 billion in gross profit and brought in $19.17 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 34.90%. Return on equity (ROE) for the past 12 months was 55.40%.

In Devon Energy Corporation’s quarter-end financial report for March 30, it reported total debt of $6.17 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. DVN’s revenue rose 0.29% to $4.3 billion during the quarter, while net income inched up to $3.82 billion. While analysts expected Devon Energy Corporation to report $1.38 quarterly earnings, the actual figure was $1.46 per share, beating the consensus estimate by 5.80%. During the quarter, the company generated $1.83 billion in EBITDA. The liabilities of Devon Energy Corporation were 12.32 billion at the end of its most recent quarter ended March 30, and its total debt was $6.7 billion. The value of shareholders’ equity is $641.7 million.

Technical Picture

This quick technical analysis looks at Devon Energy Corporation’s (DVN) price momentum. With a historical volatility rate of 34.66%, the RSI 9-day stood at 41.15% on 25 May.

With respect to its five-day moving average, the current Devon Energy Corporation price is down by -0.85% percent or -$0.41. At present, DVN shares trade -8.38% below its 20-day simple moving average and -22.18% percent below its 100-day simple moving average. However, the stock is currently trading approximately +6.09% above its SMA50 and -18.92% below its SMA200.

Stochastic coefficient K was 47.38% and Stochastic coefficient D was 51.56%, while ATR was 1.53. Given the Stochastic reading of 30.43% for the 14-day period, the RSI (14) reading has been calculated as 41.85%. As of today, the MACD Oscillator reading stands at 0.55, while the 14-day reading stands at 0.45.

Analyst Ratings

Devon Energy Corporation (DVN) has been rated Overweight by analysts. According to 0 brokerage firms, DVN is a sell, and 13 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 3 analysts rate Devon Energy Corporation stock as buy, with 15 recommending it as overweight.

With a median target price of $63.00, the current consensus forecast for the stock is $49.00 – $82.00. Based on these forecasts, analysts predict Devon Energy Corporation (DVN) will achieve an average price target of $64.03.


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