Key Takeaways
- Six funds managing $2 billion to $6 billion each in US stocks reported new stakes in Devon Energy (DVN) in their 13Fs for the quarter ended June 30, and the stock is up 15% since.
- Analysts’ average target sits 27% above Devon’s price, while ConocoPhillips (COP), EOG Resources (EOG) and Canadian Natural Resources (CNQ) all trade near or above their own targets.
- Devon trades at 9x forward earnings, above its 5-year average of 8.4x, and analysts expect its earnings to climb to $5.37 a share in 2028 from $3.92 in 2025.
- Devon still looks like a buy ahead of its Nov. 5 report, as long as the savings from its Coterra merger show up on schedule.
Six funds made the same bet in Q2: Devon Energy. Each one’s 13F for the quarter ended June 30, filed Aug. 14 and still its latest, shows a new Devon stake, and two of them made it their biggest position.
With Devon reporting Q3 results after the close on Nov. 5, the question for everyone else is whether there’s still room to follow them in.
TIKR tracks 28 analysts on Devon Energy. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Devon Energy, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Devon Energy’s Analyst Ratings
Two funds made Devon their biggest bet
TOMS Capital Investment Management went furthest. Its 10.26 million Devon shares were worth $424 million on June 30. That was 22.4% of the $1.89 billion of US stocks in its 13F, and its largest position. It also reported call options with a notional value of $566 million.
Merewether Investment Management’s 6.56 million shares, worth $271 million, were its largest position too, at 5.1% of the fund.
Devon was also the No. 4 holding at Yaupon Capital Management (1.7%), No. 4 at HITE Hedge Asset Management (5.1%), No. 10 at Disciplined Growth Investors (3.0%), and No. 14 at GoldenTree Asset Management (2.7%).
A 13F shows only what a fund held on June 30, so it can’t tell us when in the quarter these funds bought, what they paid, or why.
Devon also closed its all-stock merger with Coterra Energy in that quarter, on May 7, so a fund that owned Coterra going in would have come out holding Devon.
Devon’s stock is up 15% from its June 30 price to the Nov. 3 close. That’s the stock’s move alone, since we don’t know what the funds paid or whether they still own the shares.
Analysts see more left in Devon than in its rivals
Devon isn’t the only big oil producer near its high. ConocoPhillips, EOG Resources and Canadian Natural Resources all closed Nov. 3 within 1% of their 52-week highs, and so did Devon.
What sets Devon apart is where analysts think it goes from here. The 28 analysts covering it have an average target of $61.69, 27% above its price. EOG’s average target is 8% above its price, ConocoPhillips’ is 6% above, and Canadian Natural’s is at par.
Devon is also among the cheapest of the four, at 9x forward earnings, next to about 9x for EOG and about 12x for ConocoPhillips and Canadian Natural.
Two of the six funds own ConocoPhillips as well, and they went opposite ways in the June quarter.
Merewether cut its stake by 12%, and Yaupon added 5%, each to less than 1% of its fund. ConocoPhillips has gained 39% since, which puts it above where analysts on average see it going.
Devon’s earnings have to climb back
Devon’s normalized EPS fell from $5.71 in 2023 to $3.92 in 2025, and analysts expect it to reach $5.37 by 2028:
Devon is counting on its merger to help get there.
It’s targeting $1 billion of annual pre-tax synergies from Coterra by the end of 2027, and the Nov. 5 report covers its first full quarter as a combined company.
On Oct. 8, it also agreed to sell its Eagle Ford assets for $4.2 billion.
Investors are already paying up for that recovery. Devon trades at 8.8x forward earnings, above its 5-year average of 8.4x:
(It’s still well below the nearly 15x it hit in March.)
Wall Street keeps raising its target
Analysts have lifted their average target from $45.30 a year ago to $61.69 now, the highest it’s been all year:
The most bullish analyst sees $74 a share. The most cautious sees $44, below the stock’s $47.62 close.
Devon still looks like a buy
The risk is that all four stocks go into their early-November reports near their highs, which leaves little room for a miss from any of them.
Even so, I’d buy Devon before the report. It’s priced like EOG, and analysts see far more upside in it than in any of its three rivals.
If Devon delivers the Coterra savings it’s targeting by the end of 2027, it can grow into its price.
The Nov. 5 report is the first real test of whether those savings arrive on schedule. And the six funds’ filings for the quarter ended Sept. 30, due by Nov. 16, will show whether they held on through the run.
So what is Devon Energy stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
