Insider trades can provide valuable insight into a company's prospects. This report will examine the recent insider buying at Devon Energy (DVN:US), an independent oil and gas exploration company listed on the New York Stock Exchange with a market cap of approximately $30.45 billion.

Insider Buying at Devon Energy

2iQ data shows that on March 14, two top-level insiders at Devon Energy invested in DVN stock. Those who bought shares were:

President and CEO Richard Muncrief (7,500 shares @ $50.30 per share)
Executive Vice President COO Clay Gaspar (20,000 shares @ $49.98 per share).

In total, the insiders invested just over $1.37 million in company stock.

Frequent Insider Transactions

These insider buys are interesting for several reasons. Firstly, this is the second pair of insiders to purchase DVN stock, and both occasions have involved CEO Mr. Muncrief. We reported on Devon Energy’s recent insider buying in early March 2023.

Within one month, the CEO spent over $1.17 million on company stock, a substantial amount of money. Before this wave of activity, there had been no insider buying at Devon Energy since March 2020.

Mr. Gaspar was appointed COO and Executive Vice President at the same time Mr. Muncrief became President and CEO in January 2021, when Devon merged with WPX Energy.

Both insiders have a vast understanding of the company and the petroleum industry and have also worked with each other for the better part of a decade.

The COO’s investment was also the largest scale purchase at the company this year, as his trades were worth just under $1 million alone.

This sharp rise in internal investment suggests positive sentiment toward DVN’s prospects.

$1 Billion Share Buyback

Devon’s stock price has continued to dip in light of disappointing fourth-quarter results.

In the last quarter of 2022, adjusted earnings fell short of the expected $1.75 at $1.66 due to inclement weather and increased personnel costs.

Nevertheless, cash flow was up 18% from the same period in the prior year at $1.9 billion, which funded all capital requirements and produced $1.1 billion in free cash flow, the highest in the company's 52-year history.

Additionally, the board approved an 11% increase to the dividend, implying that management is optimistic about the future. Mr. Muncrief’s statement emphasizes this:

“As I look to 2023, there will be no change to our disciplined approach to the business. We have designed a capital program to efficiently sustain production, deliver high returns on capital employed and generate significant free cash flow that can once again be harvested for shareholders,” said President and CEO Richard Muncrief.

Ongoing insider buying at the company suggests they view the stock as undervalued and expect the price to rise.

We see the insider buying as a bullish signal. Stay updated with the latest insider buying at Devon on 2iQ’s blog.

Back to Overview