Adage Capital Partners GP L.L.C. Acquires Shares of 485,503 Diamondback Energy, Inc. $FANG

Key Points

• Adage Capital Partners GP L.L.C. acquired 485,503 shares of Diamondback Energy, valued at approximately $77.6 million, making it a new position for the firm in the first quarter.
• Several analysts have placed a consensus rating of "Buy" on Diamondback Energy, with a target price of $193.33, indicating strong market confidence in the company's stock.
• Diamondback Energy announced a $1.00 per share quarterly dividend with a yield of 2.7%, reflecting its solid financial position despite a recent earnings miss.

Adage Capital Partners GP L.L.C. purchased a new stake in Diamondback Energy, Inc. (NASDAQ:FANG - Free Report) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 485,503 shares of the oil and natural gas company's stock, valued at approximately $77,622,000. Adage Capital Partners GP L.L.C. owned approximately 0.17% of Diamondback Energy at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. BankPlus Trust Department acquired a new stake in Diamondback Energy in the first quarter valued at $27,000. Pinnacle Bancorp Inc. raised its stake in Diamondback Energy by 95.7% in the first quarter. Pinnacle Bancorp Inc. now owns 180 shares of the oil and natural gas company's stock valued at $29,000 after buying an additional 88 shares in the last quarter. SouthState Corp raised its stake in Diamondback Energy by 596.4% in the first quarter. SouthState Corp now owns 195 shares of the oil and natural gas company's stock valued at $31,000 after buying an additional 167 shares in the last quarter. Grove Bank & Trust raised its stake in Diamondback Energy by 65.0% in the first quarter. Grove Bank & Trust now owns 203 shares of the oil and natural gas company's stock valued at $32,000 after buying an additional 80 shares in the last quarter. Finally, WASHINGTON TRUST Co raised its stake in Diamondback Energy by 119.8% in the first quarter. WASHINGTON TRUST Co now owns 200 shares of the oil and natural gas company's stock valued at $32,000 after buying an additional 109 shares in the last quarter. 90.01% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Diamondback Energy news, Chairman Travis D. Stice sold 20,400 shares of Diamondback Energy stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $142.80, for a total value of $2,913,120.00. Following the sale, the chairman owned 102,145 shares of the company's stock, valued at approximately $14,586,306. The trade was a 16.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.70% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on FANG. Scotiabank restated an "outperform" rating on shares of Diamondback Energy in a research note on Friday, July 11th. Melius Research assumed coverage on Diamondback Energy in a report on Wednesday, August 20th. They set a "buy" rating and a $213.00 price objective on the stock. Morgan Stanley raised their price objective on Diamondback Energy from $184.00 to $186.00 and gave the stock an "overweight" rating in a report on Monday, August 18th. Bank of America raised their price objective on Diamondback Energy from $165.00 to $170.00 and gave the stock a "buy" rating in a report on Friday, May 23rd. Finally, Piper Sandler dropped their price objective on Diamondback Energy from $228.00 to $222.00 and set an "overweight" rating on the stock in a report on Thursday, August 14th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Buy" and an average price target of $193.17.

Diamondback Energy Stock Performance

Shares of NASDAQ FANG traded down $4.03 during midday trading on Friday, reaching $138.71. 1,993,976 shares of the company were exchanged, compared to its average volume of 1,686,301. The company has a current ratio of 0.55, a quick ratio of 0.52 and a debt-to-equity ratio of 0.35. Diamondback Energy, Inc. has a 1 year low of $114.00 and a 1 year high of $200.47. The stock has a fifty day simple moving average of $142.93 and a 200 day simple moving average of $142.77. The stock has a market cap of $40.16 billion, a P/E ratio of 9.86 and a beta of 1.14.

Diamondback Energy (NASDAQ:FANG - Get Free Report) last released its quarterly earnings results on Monday, August 4th. The oil and natural gas company reported $2.67 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.72 by ($0.05). Diamondback Energy had a return on equity of 9.48% and a net margin of 27.25%.The company had revenue of $3.68 billion for the quarter, compared to analysts' expectations of $3.35 billion. During the same period in the prior year, the business earned $4.52 EPS. The business's quarterly revenue was up 48.1% compared to the same quarter last year. On average, research analysts forecast that Diamondback Energy, Inc. will post 15.49 earnings per share for the current fiscal year.

Diamondback Energy Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 21st. Shareholders of record on Thursday, August 14th were issued a $1.00 dividend. This represents a $4.00 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend was Thursday, August 14th. Diamondback Energy's payout ratio is currently 28.43%.

Diamondback Energy Profile

Diamondback Energy, Inc, an independent oil and natural gas company, acquires, develops, explores, and exploits unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. It focuses on the development of the Spraberry and Wolfcamp formations of the Midland basin; and the Wolfcamp and Bone Spring formations of the Delaware basin, which are part of the Permian Basin in West Texas and New Mexico.