There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on July 8, Devon Energy Corp.'s Director, John A Hill, invested $52,654.46 into 655 shares of DVN, for a cost per share of $80.39. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.
In trading on Friday, bargain hunters could buy shares of Devon Energy Corp. (NYSE:DVN) and achieve a cost basis 21.5% cheaper than Hill, with shares changing hands as low as $63.10 per share. It should be noted that Hill has collected $0.17/share in dividends since the time of their purchase, so they are currently down 21.3% on their purchase from a total return basis. Devon Energy Corp. shares are currently trading down about 0.9% on the day. The chart below shows the one year performance of DVN shares, versus its 200 day moving average:
Looking at the chart above, DVN's low point in its 52 week range is $50.74 per share, with $93.56 as the 52 week high point — that compares with a last trade of $63.47. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:
John A Hill
The current annualized dividend paid by Devon Energy Corp. is $0.68/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 12/13/2011. Below is a long-term dividend history chart for DVN, which can be of good help in judging whether the most recent dividend with approx. 1.1% annualized yield is likely to continue.
DVN operates in the Oil & Gas Exploration & Production sector, among companies like Provident Energy Ltd (PVX) which is off about 0.2% today, and Exco Resources Inc. (NYSE:XCO) trading lower by about 5%. Below is a three month price history chart comparing the stock performance of DVN, versus PVX and XCO.
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