BlackRock Inc. Acquires New Position in Diamondback Energy, Inc. $FANG

Key Points

• BlackRock acquired 18.79 million shares of Diamondback Energy in the second quarter, valued at approximately $3.3 billion and representing a 6.68% stake. Institutional investors collectively own 90.01% of the company.
• Diamondback Energy reported quarterly EPS of $6.48, exceeding estimates by $0.40, while revenue rose 51.2% year over year to $5.56 billion. The company also declared a $1.10 quarterly dividend, equal to a 2.1% annualized yield.
• Analyst sentiment remains generally positive, with the stock carrying a consensus “Buy” rating and a $221.75 average price target; shares recently opened at $210.02.

BlackRock Inc. acquired a new stake in Diamondback Energy, Inc. (NASDAQ:FANG - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 18,792,594 shares of the oil and natural gas company's stock, valued at approximately $3,303,362,000. BlackRock Inc. owned about 6.68% of Diamondback Energy at the end of the most recent quarter.

A number of other institutional investors have also bought and sold shares of FANG. Cresset Asset Management LLC grew its holdings in Diamondback Energy by 37.5% in the 2nd quarter. Cresset Asset Management LLC now owns 4,726 shares of the oil and natural gas company's stock valued at $649,000 after buying an additional 1,288 shares in the last quarter. Jump Financial LLC acquired a new stake in shares of Diamondback Energy in the 2nd quarter worth $2,301,000. Cerity Partners LLC raised its holdings in shares of Diamondback Energy by 13.5% during the 2nd quarter. Cerity Partners LLC now owns 51,104 shares of the oil and natural gas company's stock worth $7,022,000 after acquiring an additional 6,069 shares during the period. AXA S.A. raised its holdings in shares of Diamondback Energy by 8.5% during the 2nd quarter. AXA S.A. now owns 52,355 shares of the oil and natural gas company's stock worth $7,194,000 after acquiring an additional 4,103 shares during the period. Finally, Sei Investments Co. boosted its position in shares of Diamondback Energy by 37.1% during the 2nd quarter. Sei Investments Co. now owns 154,582 shares of the oil and natural gas company's stock valued at $21,239,000 after acquiring an additional 41,866 shares during the last quarter. 90.01% of the stock is owned by hedge funds and other institutional investors.

Diamondback Energy Price Performance

Diamondback Energy stock opened at $210.02 on Wednesday. The company's 50 day simple moving average is $190.79 and its 200-day simple moving average is $188.42. The company has a market capitalization of $58.81 billion, a price-to-earnings ratio of 40.94 and a beta of 0.43. Diamondback Energy, Inc. has a 1 year low of $134.30 and a 1 year high of $214.51. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.45 and a current ratio of 0.47.

Diamondback Energy (NASDAQ:FANG - Get Free Report) last issued its quarterly earnings data on Monday, August 3rd. The oil and natural gas company reported $6.48 EPS for the quarter, topping the consensus estimate of $6.08 by $0.40. The firm had revenue of $5.56 billion for the quarter, compared to analyst estimates of $4.89 billion. Diamondback Energy had a net margin of 8.58% and a return on equity of 10.10%. The business's revenue for the quarter was up 51.2% compared to the same quarter last year. During the same period in the prior year, the business posted $2.38 EPS. As a group, equities research analysts expect that Diamondback Energy, Inc. will post 19.5 earnings per share for the current year.

Diamondback Energy Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Thursday, August 13th will be paid a $1.10 dividend. The ex-dividend date of this dividend is Thursday, August 13th. This represents a $4.40 dividend on an annualized basis and a dividend yield of 2.1%. Diamondback Energy's payout ratio is presently 85.77%.

Insider Transactions at Diamondback Energy

In related news, Director Charles Alvin Meloy sold 33,333 shares of the business's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $198.41, for a total value of $6,613,600.53. Following the sale, the director owned 818,197 shares in the company, valued at approximately $162,338,466.77. The trade was a 3.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Lawrence Plaumann sold 500 shares of the stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $196.50, for a total value of $98,250.00. Following the transaction, the director directly owned 13,437 shares in the company, valued at approximately $2,640,370.50. The trade was a 3.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 129,167 shares of company stock valued at $24,714,309. Corporate insiders own 0.64% of the company's stock.

Analyst Ratings Changes

FANG has been the subject of a number of analyst reports. Zacks Research lowered shares of Diamondback Energy from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 28th. Raymond James Financial reaffirmed a "strong-buy" rating and set a $248.00 target price on shares of Diamondback Energy in a research note on Friday, July 31st. Jefferies Financial Group reissued a "hold" rating and issued a $205.00 price target on shares of Diamondback Energy in a research note on Sunday, August 9th. Weiss Ratings upgraded shares of Diamondback Energy from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, July 31st. Finally, Truist Financial raised their price target on shares of Diamondback Energy from $220.00 to $224.00 and gave the stock a "buy" rating in a report on Wednesday, August 5th. Four investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $221.75.

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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