Allstate Corp Buys 6,874 Shares of Diamondback Energy, Inc. $FANG

Key Points

• Allstate Corp nearly doubled its Diamondback Energy position in the fourth quarter, buying 6,874 additional shares and bringing its total stake to 13,843 shares worth about $2.08 million.
• Insiders sold stock during the period, including Chairman Travis D. Stice and Director Charles Alvin Meloy, with insiders selling 174,321 shares worth about $32.1 million over the last quarter.
• Diamondback Energy beat quarterly earnings expectations with EPS of $4.23 versus $3.74 expected, and it also raised its quarterly dividend to $1.10 per share. Analysts remain broadly bullish, with a consensus rating of Buy and an average price target of $223.26.

Allstate Corp lifted its stake in Diamondback Energy, Inc. (NASDAQ:FANG - Free Report) by 98.6% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 13,843 shares of the oil and natural gas company's stock after purchasing an additional 6,874 shares during the period. Allstate Corp's holdings in Diamondback Energy were worth $2,081,000 at the end of the most recent quarter.

Other hedge funds have also recently made changes to their positions in the company. Flagship Harbor Advisors LLC purchased a new stake in Diamondback Energy in the fourth quarter worth about $25,000. Laurel Wealth Advisors LLC purchased a new stake in Diamondback Energy in the fourth quarter worth about $26,000. Richardson Financial Services Inc. lifted its stake in Diamondback Energy by 245.1% in the fourth quarter. Richardson Financial Services Inc. now owns 176 shares of the oil and natural gas company's stock worth $26,000 after acquiring an additional 125 shares during the period. JPL Wealth Management LLC purchased a new stake in Diamondback Energy in the third quarter worth about $26,000. Finally, Lloyd Advisory Services LLC. purchased a new stake in Diamondback Energy in the fourth quarter worth about $31,000. 90.01% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In related news, Chairman Travis D. Stice sold 63,957 shares of the stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $181.16, for a total value of $11,586,450.12. Following the transaction, the chairman owned 305,314 shares in the company, valued at approximately $55,310,684.24. This represents a 17.32% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Charles Alvin Meloy sold 7,857 shares of the stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $183.27, for a total transaction of $1,439,952.39. Following the completion of the transaction, the director owned 974,149 shares in the company, valued at approximately $178,532,287.23. This trade represents a 0.80% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 174,321 shares of company stock worth $32,090,475 in the last quarter. 0.64% of the stock is currently owned by corporate insiders.

Diamondback Energy Stock Performance

FANG opened at $194.14 on Friday. Diamondback Energy, Inc. has a 52-week low of $133.75 and a 52-week high of $214.51. The company has a quick ratio of 0.55, a current ratio of 0.56 and a debt-to-equity ratio of 0.31. The company has a market cap of $54.61 billion, a P/E ratio of 225.75 and a beta of 0.46. The firm's 50-day moving average price is $195.24 and its 200-day moving average price is $171.66.

Diamondback Energy (NASDAQ:FANG - Get Free Report) last posted its quarterly earnings data on Monday, May 4th. The oil and natural gas company reported $4.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.74 by $0.49. Diamondback Energy had a net margin of 1.87% and a return on equity of 7.76%. The firm had revenue of $4.24 billion for the quarter, compared to the consensus estimate of $3.83 billion. During the same quarter in the prior year, the company posted $4.54 earnings per share. The company's revenue for the quarter was up 4.7% compared to the same quarter last year. As a group, equities analysts anticipate that Diamondback Energy, Inc. will post 19.49 EPS for the current fiscal year.

Diamondback Energy Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 21st. Investors of record on Thursday, May 14th were issued a $1.10 dividend. This is a boost from Diamondback Energy's previous quarterly dividend of $1.05. The ex-dividend date was Thursday, May 14th. This represents a $4.40 annualized dividend and a yield of 2.3%. Diamondback Energy's dividend payout ratio is currently 511.63%.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Raymond James Financial reaffirmed a "strong-buy" rating and issued a $242.00 price objective on shares of Diamondback Energy in a research note on Monday, April 27th. Zacks Research raised shares of Diamondback Energy from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, April 29th. The Goldman Sachs Group upped their price objective on shares of Diamondback Energy from $187.00 to $212.00 and gave the stock a "buy" rating in a research note on Wednesday, March 11th. Morgan Stanley upped their price objective on shares of Diamondback Energy from $224.00 to $229.00 and gave the stock an "overweight" rating in a research note on Friday, May 22nd. Finally, Piper Sandler upped their price objective on shares of Diamondback Energy from $215.00 to $248.00 and gave the stock an "overweight" rating in a research note on Thursday, March 12th. Five equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $223.26.

Diamondback Energy Company Profile

Diamondback Energy, Inc NASDAQ: FANG is an independent oil and natural gas company focused on the development, exploration and production of unconventional resources in the Permian Basin. Headquartered in Midland, Texas, the company concentrates its operations in the core Midland and Delaware sub‑basins of West Texas and southeastern New Mexico, where it pursues contiguous acreage positions to support repeatable drilling programs.

Diamondback's activities span the upstream value chain, including leasehold acquisition, well planning, drilling, completion and production optimization.

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