Diamondback Energy (NASDAQ:FANG) Downgraded by Sanford C. Bernstein to Hold

Sanford C. Bernstein downgraded shares of Diamondback Energy (NASDAQ:FANG) from a strong-buy rating to a hold rating in a research report sent to investors on Wednesday,Zacks reports.

A number of other equities analysts have also recently commented on the stock. Raymond James Financial reissued a “strong-buy” rating on shares of Diamondback Energy in a research note on Thursday, September 17th. Royal Bank Of Canada restated an “outperform” rating and set a $240.00 price objective on shares of Diamondback Energy in a research report on Wednesday, October 14th. Susquehanna raised their price objective on shares of Diamondback Energy from $255.00 to $265.00 in a research report on Wednesday, August 5th. The Goldman Sachs Group dropped their price objective on shares of Diamondback Energy from $220.00 to $215.00 and set a “buy” rating for the company in a report on Thursday, October 1st. Finally, Jefferies Financial Group reiterated a “hold” rating and issued a $215.00 target price (up from $205.00) on shares of Diamondback Energy in a research report on Sunday, October 11th. Three analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $228.39.

Diamondback Energy Stock Up 1.6%

Shares of NASDAQ FANG opened at $180.98 on Wednesday. Diamondback Energy has a 12 month low of $139.41 and a 12 month high of $216.90. The company has a current ratio of 0.55, a quick ratio of 0.54 and a debt-to-equity ratio of 0.26. The firm has a market capitalization of $50.52 billion, a price-to-earnings ratio of 24.76 and a beta of 0.49. The business has a 50-day moving average of $194.43 and a 200-day moving average of $190.34.

Diamondback Energy (NASDAQ:FANG) last posted its quarterly earnings data on Monday, November 2nd. The oil and natural gas company reported $5.86 earnings per share for the quarter, topping the consensus estimate of $5.72 by $0.14. The company had revenue of $5.43 billion for the quarter, compared to analysts’ expectations of $4.60 billion. Diamondback Energy had a net margin of 11.03% and a return on equity of 11.86%. Diamondback Energy’s revenue for the quarter was up 38.4% compared to the same quarter last year. During the same period in the prior year, the business earned $3.08 earnings per share. Sell-side analysts expect that Diamondback Energy will post 22.52 earnings per share for the current fiscal year.

Diamondback Energy Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Thursday, November 12th will be paid a $1.18 dividend. This is an increase from Diamondback Energy’s previous quarterly dividend of $1.10. This represents a $4.72 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend is Thursday, November 12th. Diamondback Energy’s payout ratio is currently 60.19%.

Insider Activity at Diamondback Energy

In other Diamondback Energy news, Director Charles Meloy sold 33,333 shares of Diamondback Energy stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $183.74, for a total transaction of $6,124,605.42. Following the transaction, the director directly owned 759,864 shares of the company’s stock, valued at approximately $139,617,411.36. This trade represents a 4.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Travis D. Stice sold 75,000 shares of the business’s stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $204.31, for a total transaction of $15,323,250.00. Following the completion of the sale, the director owned 49,727 shares of the company’s stock, valued at approximately $10,159,723.37. The trade was a 60.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.64% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Diamondback Energy

A number of institutional investors have recently made changes to their positions in FANG. Advisors Asset Management Inc. bought a new stake in Diamondback Energy in the third quarter worth $5,702,000. Hartford Funds Management Co LLC purchased a new stake in Diamondback Energy during the third quarter valued at about $579,000. Stephens Investment Management Group LLC grew its stake in shares of Diamondback Energy by 19.3% during the third quarter. Stephens Investment Management Group LLC now owns 119,311 shares of the oil and natural gas company’s stock valued at $21,931,000 after buying an additional 19,301 shares during the last quarter. Meeder Asset Management Inc. grew its stake in shares of Diamondback Energy by 170.6% during the third quarter. Meeder Asset Management Inc. now owns 433 shares of the oil and natural gas company’s stock valued at $80,000 after buying an additional 273 shares during the last quarter. Finally, Harbour Wealth Management Group Inc. grew its stake in shares of Diamondback Energy by 4.2% during the third quarter. Harbour Wealth Management Group Inc. now owns 3,057 shares of the oil and natural gas company’s stock valued at $562,000 after buying an additional 124 shares during the last quarter. Hedge funds and other institutional investors own 90.01% of the company’s stock.

Recent Diamondback Energy Headlines

These are some of the FANG headlines that stood out recently:

• Positive Sentiment: Diamondback and KKR agreed to acquire Five Point Infrastructure’s 70% stake in Deep Blue, a produced-water platform serving the Midland Basin. Alongside Diamondback’s existing 30% stake, the deal gives the partners joint ownership of the platform and supports Diamondback’s infrastructure strategy. Diamondback and KKR to acquire Deep Blue
• Positive Sentiment: Diamondback raised its quarterly base dividend by 7.3% to $1.18 per share. The increase signals confidence in cash generation, though the cited coverage advises investors to monitor oil prices. Diamondback dividend increase and oil-price considerations
• Negative Sentiment: Commentary questions whether the stock’s valuation is justified after its strong multiyear run, while oil-price fluctuations remain a risk to earnings and investor returns. Diamondback valuation commentary

Diamondback Energy Company Profile

Diamondback Energy is an independent oil and natural gas company focused on the development and production of energy resources in the Permian Basin, primarily in West Texas and southeastern New Mexico. Its operations include exploration, drilling and production. The company produces crude oil, natural gas and natural gas liquids. Its activities are concentrated in the Midland and Delaware Basin regions, where it develops oil and gas properties and related reserves. Founded in 2007 and headquartered in Midland, Texas, Diamondback has expanded its Permian Basin operations over time, including through acquisitions.