12,264 Diamondback Energy, Inc. $FANG Shares Bought by Sumitomo Mitsui Trust Group Inc.

Key Points

• Sumitomo Mitsui Trust Group increased its Diamondback Energy stake by 2.7%, purchasing 12,264 shares to reach 466,136 shares valued at approximately $85.7 million. Institutional investors collectively own 90.01% of FANG.
• Diamondback exceeded third-quarter expectations, reporting adjusted earnings of $5.86 per share and revenue of $5.43 billion, up 38.4% year over year. The company also generated $2.1 billion in free cash flow, raised its annual base dividend by 7.3%, and repurchased about $251 million in stock.
• Despite the earnings beat, FANG shares declined amid concerns about commodity-price volatility, valuation, and the sustainability of unusually strong oil-price-driven results. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $228.43.

Sumitomo Mitsui Trust Group Inc. boosted its stake in Diamondback Energy, Inc. (NASDAQ:FANG - Free Report) by 2.7% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 466,136 shares of the oil and natural gas company's stock after buying an additional 12,264 shares during the period. Sumitomo Mitsui Trust Group Inc. owned 0.17% of Diamondback Energy worth $85,680,000 at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of FANG. BlackRock Inc. bought a new position in shares of Diamondback Energy in the 2nd quarter worth approximately $3,303,362,000. Wellington Management Group LLP lifted its stake in shares of Diamondback Energy by 31.3% in the 2nd quarter. Wellington Management Group LLP now owns 16,420,247 shares of the oil and natural gas company's stock valued at $2,886,351,000 after purchasing an additional 3,918,943 shares during the period. State Street Corp boosted its position in shares of Diamondback Energy by 4.2% during the second quarter. State Street Corp now owns 12,562,224 shares of the oil and natural gas company's stock valued at $2,208,188,000 after purchasing an additional 510,281 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in shares of Diamondback Energy during the second quarter valued at approximately $852,791,000. Finally, Diamond Hill Capital Management LLC Investment Advisor bought a new stake in shares of Diamondback Energy during the second quarter valued at approximately $268,855,000. 90.01% of the stock is owned by institutional investors.

Insider Buying and Selling at Diamondback Energy

In other news, Director Charles Meloy sold 33,333 shares of the firm's stock in a transaction on Monday, October 5th. The stock was sold at an average price of $183.74, for a total transaction of $6,124,605.42. Following the completion of the transaction, the director directly owned 759,864 shares in the company, valued at $139,617,411.36. This trade represents a 4.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Travis D. Stice sold 75,000 shares of the firm's stock in a transaction on Friday, September 11th. The shares were sold at an average price of $204.31, for a total value of $15,323,250.00. Following the transaction, the director owned 49,727 shares of the company's stock, valued at $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. Insiders own 0.64% of the company's stock.

Key Diamondback Energy News

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

• Positive Sentiment: Third-quarter results exceeded expectations. Adjusted earnings were $5.86 per share, above the $5.72 FactSet consensus and the $4.92 Zacks estimate. Revenue rose 38.4% year over year to $5.43 billion, well ahead of the $4.60 billion analyst estimate. Diamondback Energy Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Profitability and production momentum improved. Quarterly profit increased to $1.6 billion from $1.02 billion a year earlier, supported by higher output and elevated oil prices amid Middle East-related supply disruptions. Diamondback also raised its production targets again. Diamondback Energy Beats Third-Quarter Profit Estimates
• Positive Sentiment: Capital returns and cash generation were substantial. Diamondback generated $2.1 billion of free cash flow, increased its annual base dividend 7.3% to $4.72 per share, repurchased approximately $251 million of stock, and bought back a portion of its long-term debt. Diamondback Energy Announces Third-Quarter Results and Increases Base Dividend
• Neutral Sentiment: Viper Energy, a Diamondback subsidiary, also reported strong third-quarter results, including $300 million of net income and $596 million of adjusted EBITDA, supporting the value of Diamondback’s broader asset portfolio. Viper Energy Reports Third-Quarter Results
• Negative Sentiment: The stock decreased despite the earnings beat. The reported results may have been largely anticipated, while investors could be weighing commodity-price volatility, elevated valuation, and the sustainability of earnings that benefited from unusually strong oil prices. The available reports did not identify a specific operational disappointment.

Wall Street Analyst Weigh In

Several equities analysts have commented on FANG shares. Seaport Research Partners assumed coverage on Diamondback Energy in a research report on Thursday, September 3rd. They set a "neutral" rating for the company. Weiss Ratings upgraded shares of Diamondback Energy from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday, October 19th. UBS Group upped their target price on shares of Diamondback Energy from $243.00 to $253.00 and gave the stock a "buy" rating in a research report on Monday, September 14th. BMO Capital Markets increased their price target on shares of Diamondback Energy from $215.00 to $224.00 and gave the stock an "outperform" rating in a research note on Friday, October 2nd. Finally, Scotiabank initiated coverage on shares of Diamondback Energy in a research note on Wednesday, October 14th. They issued a "sector outperform" rating and a $250.00 price target for the company. Two investment analysts have rated the stock with a Strong Buy rating, twenty-four have given a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, Diamondback Energy presently has a consensus rating of "Moderate Buy" and an average target price of $228.43.

Diamondback Energy Stock Performance

Shares of FANG opened at $199.74 on Tuesday. The company has a quick ratio of 0.45, a current ratio of 0.47 and a debt-to-equity ratio of 0.25. The stock has a market cap of $55.93 billion, a P/E ratio of 13.28 and a beta of 0.55. The business's 50 day moving average price is $197.16 and its 200-day moving average price is $189.30. Diamondback Energy, Inc. has a 52 week low of $137.03 and a 52 week high of $216.90.

Diamondback Energy (NASDAQ:FANG - Get Free Report) 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, beating analysts' consensus estimates of $5.72 by $0.14. The company had revenue of $5.43 billion during the quarter, compared to analyst estimates of $4.60 billion. Diamondback Energy had a return on equity of 10.10% and a net margin of 8.58%. The firm's revenue for the quarter was up 38.4% on a year-over-year basis. During the same quarter last year, the company earned $3.08 EPS. Equities research analysts anticipate that Diamondback Energy, Inc. will post 21.49 earnings per share for the current fiscal year.

Diamondback Energy Company Profile

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

Diamondback produces crude oil, natural gas and natural gas liquids from horizontal wells and related infrastructure. Its activities include drilling and completing wells, operating gathering and processing assets, and managing midstream services that support production.

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