NEW YORK (TheStreet) -- Shares of Devon Energy Corp (DVN) are climbing, up 0.03% to $68.23 in midday trading Friday, after hedge fund Third Point disclosed that it took a new position in the independent energy company.
The hedge fund revealed in its first quarter letter to investors that it has initiated a position in Devon Energy, saying it combines limited downside with an under-appreciated, valuable asset base.
Third Point added that it is encouraging Devon's management to streamline its portfolio.
Oklahoma City-based Devon Energy is an independent energy company engaged in the exploration, development and production of oil, natural gas and natural gas liquids.
The company holds 14 million net acres, of which roughly 60% are undeveloped.
Separately, TheStreet Ratings team rates DEVON ENERGY CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DEVON ENERGY CORP (DVN) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself."