Diamondback Energy (NASDAQ:FANG) Coverage Initiated by Analysts at Stifel Nicolaus

Key Points

• Stifel Nicolaus initiated coverage of Diamondback Energy with a “buy” rating and a $259 price target, implying approximately 27.5% upside from the stock’s reported $203.13 price.
• Analyst sentiment is broadly positive: Diamondback has a consensus “Moderate Buy” rating and an average price target of $224.05, based on four Strong Buy, 16 Buy, and five Hold ratings.
• The company exceeded quarterly expectations, reporting $6.48 in earnings per share versus $6.08 expected and $5.56 billion in revenue versus $4.89 billion expected; revenue rose 51.2% year over year.

Equities research analysts at Stifel Nicolaus started coverage on shares of Diamondback Energy (NASDAQ:FANG - Get Free Report) in a note issued to investors on Thursday. The firm set a "buy" rating and a $259.00 price target on the oil and natural gas company's stock. Stifel Nicolaus' price objective points to a potential upside of 27.50% from the stock's current price.

Several other research firms have also commented on FANG. Seaport Research Partners assumed coverage on shares of Diamondback Energy in a research report on Thursday, September 3rd. They set a "neutral" rating on the stock. Wells Fargo & Company increased their target price on shares of Diamondback Energy from $262.00 to $263.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 5th. Truist Financial increased their target price on shares of Diamondback Energy from $220.00 to $224.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Raymond James Financial restated a "strong-buy" rating and set a $248.00 target price on shares of Diamondback Energy in a research report on Friday, July 31st. Finally, Wolfe Research reaffirmed an "outperform" rating and issued a $206.00 price target on shares of Diamondback Energy in a report on Tuesday, August 4th. Four equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, Diamondback Energy currently has an average rating of "Moderate Buy" and a consensus price target of $224.05.

Diamondback Energy Stock Performance

NASDAQ:FANG traded up $0.50 during trading hours on Thursday, reaching $203.13. The company had a trading volume of 86,389 shares, compared to its average volume of 2,546,266. Diamondback Energy has a 1-year low of $134.30 and a 1-year high of $216.90. The firm has a market cap of $56.88 billion, a PE ratio of 39.55 and a beta of 0.43. The business's 50 day moving average price is $196.46 and its 200-day moving average price is $192.45. The company has a debt-to-equity ratio of 0.25, a current ratio of 0.47 and a quick ratio of 0.45.

Diamondback Energy (NASDAQ:FANG - Get Free Report) last issued its quarterly earnings data on Monday, August 3rd. The oil and natural gas company reported $6.48 EPS for the quarter, topping analysts' consensus estimates of $6.08 by $0.40. The business had revenue of $5.56 billion for the quarter, compared to analysts' expectations of $4.89 billion. Diamondback Energy had a net margin of 8.58% and a return on equity of 10.10%. The business's revenue was up 51.2% on a year-over-year basis. During the same quarter last year, the company earned $2.38 EPS. Research analysts forecast that Diamondback Energy will post 20.14 EPS for the current year.

Insider Activity at Diamondback Energy

In related news, Director Charles Meloy sold 33,333 shares of the company's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $198.41, for a total transaction of $6,613,600.53. Following the completion of the transaction, the director owned 818,197 shares in the company, valued at $162,338,466.77. This represents a 3.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.64% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Diamondback Energy

Several institutional investors have recently bought and sold shares of FANG. The Manufacturers Life Insurance Company lifted its position in shares of Diamondback Energy by 3.2% in the second quarter. The Manufacturers Life Insurance Company now owns 150,826 shares of the oil and natural gas company's stock valued at $26,512,000 after acquiring an additional 4,686 shares in the last quarter. Sequoia Financial Advisors LLC boosted its stake in shares of Diamondback Energy by 3.5% in the second quarter. Sequoia Financial Advisors LLC now owns 7,686 shares of the oil and natural gas company's stock worth $1,351,000 after acquiring an additional 259 shares during the last quarter. MCF Advisors LLC increased its position in shares of Diamondback Energy by 11.6% during the second quarter. MCF Advisors LLC now owns 1,987 shares of the oil and natural gas company's stock worth $349,000 after purchasing an additional 207 shares in the last quarter. Allworth Financial LP increased its position in shares of Diamondback Energy by 43.3% during the second quarter. Allworth Financial LP now owns 11,812 shares of the oil and natural gas company's stock worth $2,076,000 after purchasing an additional 3,568 shares in the last quarter. Finally, Arizona State Retirement System raised its stake in Diamondback Energy by 3.3% in the 2nd quarter. Arizona State Retirement System now owns 52,689 shares of the oil and natural gas company's stock valued at $9,262,000 after purchasing an additional 1,662 shares during the last quarter. 90.01% of the stock is currently owned by institutional investors and hedge funds.

Diamondback Energy Company Profile

Diamondback Energy, Inc is an independent oil and natural gas company focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin of West Texas and southeastern New Mexico. The company's operations are concentrated primarily in the Midland and Delaware sub-basins.

Diamondback produces crude oil, natural gas and natural gas liquids. Its activities include drilling and completing horizontal wells, operating gathering and infrastructure assets, and managing mineral and royalty interests through its Viper Energy platform.

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