Analysts Are Downgrading These 5 Energy Stocks

3. Devon Energy Corporation (NYSE:DVN)

Number of Hedge Fund Holders: 51      

Devon Energy Corporation (NYSE:DVN) is an independent energy firm. A stream of negative news in the past few weeks has had a negative overall effect on the shares of the firm. On March 14, the share price of the energy giant dropped over 10% in a single day after Jeffrey Ritenour, the CFO of the firm, sold 55,000 shares of the firm valued at around $3.2 million. A proposal to tax the profits of oil firms at a rate of 50% and a Congressional hearing on high prices were also among the news items that sent shares of the firm sliding. 

On March 2, Devon Energy Corporation (NYSE:DVN) was among a host of energy stocks that were downgraded to Hold from Buy by investment advisory Benchmark. Analyst Subash Chandra issued the ratings update. 

Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Devon Energy Corporation (NYSE:DVN) with 14.5 million shares worth more than $638 million. 

In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Devon Energy Corporation (NYSE:DVN) was one of them. Here is what the fund said:

“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”