Devon Energy (DVN) Stock: Why It Increased Today

By Amit Chowdhry ● Feb 22, 2022
  • The stock price of Devon Energy Corp (NYSE: DVN) increased by over 4% pre-market today. This is why it happened.

The stock price of Devon Energy Corp (NYSE: DVN) increased by over 4% pre-market today. Investors are responding positively to a bullish research report.

Raymond James analyst John Freeman increased the price target on Devon Energy to $70 from $65 while maintaining a “Strong Buy” rating on the shares.

“We’re updating estimates post 4Q results. Devon remains one of our top picks in the E&P sector. The combination of a shareholder-friendly dividend payout structure, strong balance sheet, and deep drilling inventory position the company well going forward. In 4Q, the big news was on the shareholder return front, in particular, share buybacks,” wrote Freeman in a research report. “DVN spent $589 million on share repurchases during 4Q and expanded their repurchase allowance by $600M. Buybacks, in conjunction with the base plus variable dividend, should yield over 10% in 2022, about 8% of which will be from dividend payments. Devon reiterated its plans for maintenance mode, maintaining 2022 guidance of 570-600 Mboe/d and $1.9-2.2B in upstream capex (RJe $200M additional in nonupstream). Likewise, in 2022 we are anticipating 14%FCF yield.”

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.