Capital World Investors Has $250.54 Million Position in Diamondback Energy, Inc. $FANG

Key Points

• Capital World Investors boosted its Diamondback Energy stake by 2.0% in the fourth quarter, ending with 1,666,586 shares worth about $250.5 million.
• Diamondback reported better-than-expected Q1 results, with EPS of $4.23 versus the $3.74 consensus and revenue of $4.24 billion, up 4.7% year over year.
• The company also raised its quarterly dividend to $1.10 from $1.05, while analysts remain generally positive with an average rating of Moderate Buy and a target price of $223.26.

Capital World Investors increased its position in Diamondback Energy, Inc. (NASDAQ:FANG - Free Report) by 2.0% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The fund owned 1,666,586 shares of the oil and natural gas company's stock after buying an additional 32,527 shares during the period. Capital World Investors owned 0.58% of Diamondback Energy worth $250,538,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Flagship Harbor Advisors LLC acquired a new position in Diamondback Energy in the fourth quarter worth approximately $25,000. Laurel Wealth Advisors LLC acquired a new position in Diamondback Energy in the fourth quarter worth approximately $26,000. Richardson Financial Services Inc. increased its holdings 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 buying an additional 125 shares during the last quarter. JPL Wealth Management LLC acquired a new position in Diamondback Energy in the third quarter worth approximately $26,000. Finally, Wellington Shields & Co. LLC increased its holdings in Diamondback Energy by 264.7% in the fourth quarter. Wellington Shields & Co. LLC now owns 186 shares of the oil and natural gas company's stock worth $28,000 after buying an additional 135 shares during the last quarter. Institutional investors and hedge funds own 90.01% of the company's stock.

Insider Buying and Selling

In other news, Director Steven E. West sold 6,000 shares of the stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $188.35, for a total value of $1,130,100.00. Following the completion of the sale, the director directly owned 4,484 shares of the company's stock, valued at approximately $844,561.40. This represents a 57.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Jere W. Thompson III sold 750 shares of the stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $182.47, for a total value of $136,852.50. Following the completion of the sale, the chief financial officer directly owned 19,975 shares of the company's stock, valued at $3,644,838.25. This represents a 3.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 78,464 shares of company stock valued at $14,946,406 in the last ninety days. Company insiders own 0.64% of the company's stock.

Diamondback Energy Stock Up 2.9%

Shares of Diamondback Energy stock opened at $198.20 on Tuesday. The stock has a market capitalization of $55.76 billion, a P/E ratio of 230.47 and a beta of 0.42. 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 stock has a 50 day moving average price of $195.99 and a two-hundred day moving average price of $174.25. Diamondback Energy, Inc. has a 12-month low of $134.30 and a 12-month high of $214.51.

Diamondback Energy (NASDAQ:FANG - Get Free Report) last announced its earnings results on Monday, May 4th. The oil and natural gas company reported $4.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.74 by $0.49. Diamondback Energy had a return on equity of 7.76% and a net margin of 1.87%.The firm had revenue of $4.24 billion during the quarter, compared to analysts' expectations of $3.83 billion. During the same quarter in the prior year, the business earned $4.54 earnings per share. The company's revenue was up 4.7% on a year-over-year basis. Equities analysts expect that Diamondback Energy, Inc. will post 19.65 earnings per share for the current year.

Diamondback Energy Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 21st. Stockholders of record on Thursday, May 14th were given a $1.10 dividend. This is a positive change from Diamondback Energy's previous quarterly dividend of $1.05. This represents a $4.40 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend was Thursday, May 14th. Diamondback Energy's dividend payout ratio (DPR) is currently 511.63%.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on FANG shares. Morgan Stanley increased their price objective on Diamondback Energy from $224.00 to $229.00 and gave the stock an "overweight" rating in a report on Friday, May 22nd. Wall Street Zen raised Diamondback Energy from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. UBS Group upped their target price on Diamondback Energy from $240.00 to $245.00 and gave the stock a "buy" rating in a research report on Friday, April 10th. Benchmark cut Diamondback Energy from a "buy" rating to a "hold" rating in a research report on Thursday, March 5th. Finally, Barclays upped their target price on Diamondback Energy from $225.00 to $232.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 26th. Four analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and five have given a Hold rating to the company. According to MarketBeat, Diamondback Energy currently has an average rating of "Moderate Buy" and an average target price of $223.26.

Diamondback Energy 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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