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Why Institutional Investors Are Bullish on Devon Energy

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Recent institutional activity in DVN

In the second quarter of 2018, Citadel added a major position in Devon Energy (DVN). It bought 6.9 million shares valued at $301.6 million. Nomura Securities added 3.4 million shares.

On the other hand, D.E. Shaw & Co. and Allianz Global Investors U.S. were the biggest sellers. They sold 4.5 million and 3 million shares, respectively. Among the top five buyers and sellers, net 6.3 million positions were added. That indicates a bullish sentiment for the stock.

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Why institutional investors are bullish on DVN

Institutional investors’ bullishness for DVN could be attributed to the following factors:

  • exposure to multiple shale plays, which reduces the negative impact of price differentials, resulting in a higher average realized sales price
  • significant improvement in its balance sheet position through the sale of non-core assets
  • a strong exploration and development plan
  • a strong dividend growth and share repurchase program

Top five holders

The Vanguard Group, State Street Global Advisors, BlackRock Institutional Trust Company, Invesco Advisers, and Fidelity Management & Research Company are the top five institutional holders in DVN. The Vanguard Group continues to be the top institutional holder despite unloading 1.5 million shares in the second quarter. It held 10.5% in the company.

In the next and final part of this series, we’ll look at recent analysts’ recommendations for Devon Energy.

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