Diamondback Energy (NASDAQ:FANG) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Diamondback Energy from “hold” to “strong buy.” Other analysts were broadly positive, with MarketBeat reporting a “Moderate Buy” consensus and an average price target of $228.29.
• Diamondback beat quarterly earnings and revenue expectations, reporting EPS of $5.86 versus $5.72 expected and revenue of $5.43 billion versus $4.60 billion expected. Revenue rose 38.4% year over year.
• The stock opened at $178.96 and was down 0.3% in the session described. Directors also reported stock sales, including Charles Meloy’s 33,333-share sale and Travis Stice’s 75,000-share sale.

Diamondback Energy (NASDAQ:FANG - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a note issued to investors on Thursday, Zacks reports.

A number of other equities research analysts have also recently weighed in on FANG. Citigroup dropped their price objective on Diamondback Energy from $221.00 to $220.00 and set a "buy" rating for the company in a research note on Monday, August 10th. Truist Financial raised their price objective on shares of Diamondback Energy from $224.00 to $232.00 and gave the stock a "buy" rating in a report on Wednesday. Capital One Financial increased their target price on shares of Diamondback Energy from $272.00 to $283.00 and gave the company an "overweight" rating in a research report on Wednesday, August 19th. Weiss Ratings upgraded shares of Diamondback Energy from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, October 19th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and set a $240.00 target price on shares of Diamondback Energy in a report on Wednesday, October 14th. Three analysts have rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $228.29.

Diamondback Energy Trading Down 0.3%

Shares of NASDAQ:FANG opened at $178.96 on Thursday. The company has a current ratio of 0.47, a quick ratio of 0.45 and a debt-to-equity ratio of 0.25. The company's 50 day moving average is $195.72 and its two-hundred day moving average is $189.95. The company has a market cap of $50.11 billion, a PE ratio of 24.48 and a beta of 0.49. Diamondback Energy has a 52 week low of $139.41 and a 52 week high of $216.90.

Diamondback Energy (NASDAQ:FANG - Get Free Report) last announced its quarterly earnings results on Monday, November 2nd. The oil and natural gas company reported $5.86 EPS for the quarter, beating the consensus estimate of $5.72 by $0.14. Diamondback Energy had a return on equity of 11.99% and a net margin of 11.03%. The business had revenue of $5.43 billion during the quarter, compared to analysts' expectations of $4.60 billion. During the same quarter in the previous year, the business posted $3.08 EPS. The firm's quarterly revenue was up 38.4% compared to the same quarter last year. Equities analysts predict that Diamondback Energy will post 22.57 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Charles Meloy sold 33,333 shares of the company's stock in a transaction 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 sale, the director owned 759,864 shares of the company's stock, valued at $139,617,411.36. This represents a 4.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Travis Stice sold 75,000 shares of Diamondback Energy stock in a transaction on Friday, September 11th. The shares were 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 directly owned 49,727 shares in the company, valued at $10,159,723.37. This represents a 60.13% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.64% of the company's stock.

Institutional Investors Weigh In On Diamondback Energy

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Moors & Cabot Inc. grew its position in Diamondback Energy by 39.3% during the 3rd quarter. Moors & Cabot Inc. now owns 3,698 shares of the oil and natural gas company's stock worth $680,000 after acquiring an additional 1,044 shares during the last quarter. Allworth Financial LP boosted its holdings in shares of Diamondback Energy by 49.5% in the 3rd quarter. Allworth Financial LP now owns 17,657 shares of the oil and natural gas company's stock valued at $3,104,000 after buying an additional 5,845 shares in the last quarter. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. purchased a new position in shares of Diamondback Energy during the third quarter valued at approximately $58,000. Maryland State Retirement & Pension System raised its position in shares of Diamondback Energy by 17.4% during the 3rd quarter. Maryland State Retirement & Pension System now owns 12,444 shares of the oil and natural gas company's stock worth $2,287,000 after purchasing an additional 1,847 shares during the period. Finally, Keybank National Association OH grew its holdings in shares of Diamondback Energy by 6.8% during the third quarter. Keybank National Association OH now owns 19,619 shares of the oil and natural gas company's stock valued at $3,606,000 after buying an additional 1,245 shares in the last quarter. Institutional investors and hedge funds own 90.01% of the company's stock.

Diamondback Energy News Summary

Here are the key news stories impacting Diamondback Energy this week:

• Positive Sentiment: Diamondback raised its dividend by 7.3%, adding to the income case for the stock. Article: Diamondback Just Raised Its Dividend 7.3%
• Positive Sentiment: UBS raised its price target to $260 and maintained a Buy rating, signaling substantial potential upside in the analyst’s view. Article: UBS Group Forecasts Strong Price Appreciation for Diamondback Energy
• Positive Sentiment: Zacks added FANG to its #1 (Strong Buy) rankings for income, value, and overall stock selection. These screen-based endorsements may support sentiment, though they are not guarantees of performance. Article: New Strong Buy Stocks for November 6th
• Positive Sentiment: Management raised its 2026 production outlook and highlighted disciplined spending, improving Barnett well economics, and recovery technology as part of its Permian growth strategy. Article: FANG Q3 Earnings Call Highlights Capital Discipline and Permian Growth
• Neutral Sentiment: Diamondback said it will reinvest its Viper Energy distributions in Viper equity, a capital-allocation decision that increases its Viper exposure but does not itself represent a cash payout to FANG shareholders. Article: Viper Energy Adopts Distribution Reinvestment Plan
• Neutral Sentiment: Other recent coverage described analyst opinions on Diamondback as mixed, tempering the positive signal from UBS’s target increase. Article: Analysts’ Opinions Are Mixed on These Energy Stocks

About Diamondback Energy

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.

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