UBS Group Issues Positive Forecast for Diamondback Energy (NASDAQ:FANG) Stock Price

Key Points

• UBS raised its Diamondback Energy price target from $260 to $263 and reiterated a Buy rating, implying 45.32% upside from the prior close.
• Analyst sentiment is broadly positive: MarketBeat reports a Moderate Buy consensus and an average price target of $228.39, with 27 analysts rating the stock Buy or Strong Buy.
• Diamondback beat quarterly estimates, reporting EPS of $5.86 versus $5.72 expected and revenue of $5.43 billion, up 38.4% year over year.

Diamondback Energy (NASDAQ:FANG - Get Free Report) had its price target hoisted by investment analysts at UBS Group from $260.00 to $263.00 in a research note issued on Wednesday, Benzinga reports. The brokerage presently has a "buy" rating on the oil and natural gas company's stock. UBS Group's target price would suggest a potential upside of 45.32% from the company's previous close.

FANG has been the subject of a number of other research reports. Citigroup cut their price target on shares of Diamondback Energy from $221.00 to $220.00 and set a "buy" rating for the company in a report on Monday, August 10th. Capital One Financial upped their price objective on Diamondback Energy from $272.00 to $283.00 and gave the company an "overweight" rating in a report on Wednesday, August 19th. Stephens reiterated an "outperform" rating on shares of Diamondback Energy in a research report on Tuesday, October 13th. BMO Capital Markets raised their target price on Diamondback Energy from $215.00 to $224.00 and gave the stock an "outperform" rating in a research note on Friday, October 2nd. Finally, Wolfe Research reissued an "outperform" rating and set a $206.00 target price on shares of Diamondback Energy in a research note on Tuesday, August 4th. Three equities research 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's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $228.39.

Diamondback Energy Price Performance

NASDAQ:FANG traded up $2.90 during trading hours on Wednesday, reaching $180.98. 1,402,539 shares of the company were exchanged, compared to its average volume of 2,584,095. The business has a 50 day moving average of $194.88 and a 200 day moving average of $190.21. Diamondback Energy has a 1-year low of $139.41 and a 1-year high of $216.90. The company has a debt-to-equity ratio of 0.26, a current ratio of 0.55 and a quick ratio of 0.54. The company has a market capitalization of $50.52 billion, a P/E ratio of 24.76 and a beta of 0.49.

Diamondback Energy (NASDAQ:FANG - Get Free Report) last announced its quarterly earnings data 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 net margin of 11.03% and a return on equity of 11.86%. The business had revenue of $5.43 billion during the quarter, compared to the consensus estimate of $4.60 billion. During the same period in the previous year, the business earned $3.08 earnings per share. The company's revenue was up 38.4% on a year-over-year basis. Research analysts forecast that Diamondback Energy will post 22.57 EPS for the current year.

Insider Activity

In other news, Director Charles Meloy sold 33,333 shares of the firm's stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $183.74, for a total value of $6,124,605.42. Following the sale, 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 sale was disclosed in a document filed 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 Stice sold 75,000 shares of Diamondback Energy stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $204.31, for a total value of $15,323,250.00. Following the completion of the transaction, the director owned 49,727 shares in the company, valued at $10,159,723.37. The trade was a 60.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.64% of the company's stock.

Institutional Trading of Diamondback Energy

Hedge funds have recently added to or reduced their stakes in the stock. Waverly Advisors LLC boosted its stake in shares of Diamondback Energy by 347.1% in the 2nd quarter. Waverly Advisors LLC now owns 164,536 shares of the oil and natural gas company's stock worth $28,922,000 after buying an additional 127,732 shares during the last quarter. Envestnet Asset Management Inc. lifted its holdings in Diamondback Energy by 3.3% in the second quarter. Envestnet Asset Management Inc. now owns 512,271 shares of the oil and natural gas company's stock valued at $90,047,000 after acquiring an additional 16,424 shares during the period. USA Financial Formulas bought a new position in Diamondback Energy in the third quarter valued at about $1,141,000. Robinhood Asset Management LLC purchased a new position in Diamondback Energy in the second quarter worth about $11,307,000. Finally, Goehring & Rozencwajg Associates LLC boosted its position in Diamondback Energy by 33.1% in the first quarter. Goehring & Rozencwajg Associates LLC now owns 113,489 shares of the oil and natural gas company's stock worth $22,447,000 after purchasing an additional 28,246 shares during the last quarter. Institutional investors and hedge funds own 90.01% of the company's stock.

Diamondback Energy News Roundup

These are some of the FANG news items that stood out recently:

• Positive Sentiment: Diamondback and KKR agreed to acquire Five Point Infrastructure’s 70% stake in Deep Blue Midland Basin, where Diamondback already owns 30%. The deal would give the partners joint ownership of the produced-water platform, supporting infrastructure capacity and Diamondback’s strategy of securing services for its West Texas operations. Diamondback Energy and KKR to Acquire Deep Blue Midland Basin from Five Point Infrastructure
• Positive Sentiment: Recent broker-rating revisions and projected 2026 earnings growth have also been cited as supportive of FANG. Buy These 3 Stocks with Broker Rating Upgrades for Big Gains
• Negative Sentiment: One recent analysis cautioned that the stock may look richly valued after its multiyear gains and recent dividend and guidance increases. The article also flags oil prices as an important risk to earnings and returns. Diamondback Energy Stock May Look Rich Following Raised Dividend And Guidance

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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