Devon Energy (DVN) Drops On Shale Oil Industry Pessimism

DVN investors were likely spooked this afternoon by Barrons's report: "Two years of enormous gains for U.S. shale-oil stocks could come to a halt in 2023, as rising prices for drilling services and falling productivity for wells slow momentum in the oilfields, according to J.P. Morgan analyst Arun Jayaram." For more coverage, read the full article here. On the back of this news, Devon Energy sank -2.9% to a price of $66.48. Are the markets overreacting?

Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. The company belongs to the Energy sector, which has an average price to earnings (P/E) ratio of 9.11 and an average price to book (P/B) ratio of 1.45. In contrast, Devon Energy has a trailing 12 month P/E ratio of 7.0 and a P/B ratio of 4.0.

Devon Energy has moved 61.6% over the last year compared to -11.3% for the S&P 500 -- a difference of 72.9%. Devon Energy has a 52 week high of $79.4 and a 52 week low of $35.55. At today's price of $66.48 per share, Devon Energy is -17.98% away from its target price of $81.05, and on average, analysts give the stock a rating of buy.2.8% of the company's shares are linked to short positions, and 80.5% of the shares are owned by institutional investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.