Capital World Investors Reduces Holdings in Diamondback Energy, Inc. $FANG

Key Points

• Capital World Investors cut its stake in Diamondback Energy by 47.9% in Q3, selling 1,499,377 shares and leaving 1,634,059 shares worth about $233.8 million (≈0.57% of the company).
• A large underwritten secondary offering by the largest shareholder for 11,000,000 shares (≈$1.9B) plus significant insider selling (1,168,462 shares worth ~$192.2M in the last three months) has increased share supply and weighed on the stock.
• Diamondback missed quarterly EPS (reported $1.74 vs. $2.00 expected) with revenue down 9% year‑over‑year, though it raised its quarterly dividend to $1.05 (annualized $4.20, ~2.4% yield).

Capital World Investors lowered its stake in shares of Diamondback Energy, Inc. (NASDAQ:FANG - Free Report) by 47.9% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,634,059 shares of the oil and natural gas company's stock after selling 1,499,377 shares during the quarter. Capital World Investors owned about 0.57% of Diamondback Energy worth $233,834,000 as of its most recent SEC filing.

A number of other institutional investors also recently bought and sold shares of FANG. Vanguard Group Inc. increased its stake in Diamondback Energy by 1.7% during the 2nd quarter. Vanguard Group Inc. now owns 23,325,287 shares of the oil and natural gas company's stock valued at $3,204,894,000 after purchasing an additional 388,512 shares in the last quarter. Boston Partners lifted its stake in shares of Diamondback Energy by 2.8% during the second quarter. Boston Partners now owns 5,569,990 shares of the oil and natural gas company's stock worth $766,914,000 after buying an additional 151,150 shares during the period. Geode Capital Management LLC grew its holdings in shares of Diamondback Energy by 2.7% during the second quarter. Geode Capital Management LLC now owns 5,441,649 shares of the oil and natural gas company's stock valued at $746,526,000 after buying an additional 142,649 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Diamondback Energy by 9.2% during the third quarter. Dimensional Fund Advisors LP now owns 2,355,480 shares of the oil and natural gas company's stock valued at $337,078,000 after buying an additional 198,919 shares during the last quarter. Finally, Raymond James Financial Inc. increased its position in shares of Diamondback Energy by 9.2% in the 2nd quarter. Raymond James Financial Inc. now owns 1,952,276 shares of the oil and natural gas company's stock valued at $268,243,000 after acquiring an additional 164,293 shares during the period. 90.01% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, Director Charles Alvin Meloy sold 60,605 shares of the stock in a transaction on Tuesday, February 3rd. The shares were sold at an average price of $161.12, for a total transaction of $9,764,677.60. Following the sale, the director directly owned 982,006 shares of the company's stock, valued at approximately $158,220,806.72. This represents a 5.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Chairman Travis D. Stice sold 63,957 shares of Diamondback Energy stock in a transaction on Friday, March 6th. The shares were sold at an average price of $181.16, for a total transaction of $11,586,450.12. Following the completion of the transaction, the chairman directly owned 305,314 shares of the company's stock, valued at $55,310,684.24. The trade was a 17.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,168,462 shares of company stock valued at $192,197,747 in the last three months. 0.70% of the stock is currently owned by corporate insiders.

Diamondback Energy Stock Performance

Shares of FANG stock opened at $176.64 on Thursday. The stock has a market cap of $49.83 billion, a PE ratio of 31.49 and a beta of 0.59. The business has a 50-day simple moving average of $163.00 and a 200-day simple moving average of $151.99. The company has a quick ratio of 0.40, a current ratio of 0.42 and a debt-to-equity ratio of 0.32. Diamondback Energy, Inc. has a 52-week low of $114.00 and a 52-week high of $186.65.

Diamondback Energy (NASDAQ:FANG - Get Free Report) last posted its earnings results on Monday, February 23rd. The oil and natural gas company reported $1.74 EPS for the quarter, missing the consensus estimate of $2.00 by ($0.26). The company had revenue of $3.38 billion for the quarter, compared to analyst estimates of $3.41 billion. Diamondback Energy had a return on equity of 8.08% and a net margin of 11.07%.The firm's revenue was down 9.0% on a year-over-year basis. During the same period last year, the business earned $3.67 earnings per share. On average, equities analysts expect that Diamondback Energy, Inc. will post 15.49 EPS for the current year.

Diamondback Energy Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Thursday, March 5th will be paid a dividend of $1.05 per share. This represents a $4.20 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Thursday, March 5th. This is a positive change from Diamondback Energy's previous quarterly dividend of $1.00. Diamondback Energy's dividend payout ratio is 74.87%.

Wall Street Analyst Weigh In

FANG has been the subject of a number of research reports. TD Cowen raised Diamondback Energy to a "strong-buy" rating in a research report on Monday, February 9th. Sanford C. Bernstein cut their price objective on Diamondback Energy from $199.00 to $190.00 and set an "outperform" rating on the stock in a report on Monday, January 5th. Roth Mkm restated a "buy" rating and issued a $180.00 price objective on shares of Diamondback Energy in a research note on Tuesday, February 24th. Barclays lifted their target price on Diamondback Energy from $178.00 to $185.00 and gave the stock an "overweight" rating in a report on Wednesday, March 4th. Finally, Mizuho increased their price target on shares of Diamondback Energy from $194.00 to $205.00 and gave the stock an "outperform" rating in a report on Tuesday, February 24th. Two analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $190.10.

Diamondback Energy News Roundup

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

• Positive Sentiment: Goldman Sachs raised its price target on FANG to $212 and kept a "buy" rating, providing a sizable upside view versus the current price; this supports longer‑term valuation expectations. Goldman Sachs price target raise
• Positive Sentiment: Zacks issued several updates that include higher FY2027 estimates (FY2027 EPS raised), which traders may view as supportive for multi‑year earnings growth despite near‑term cuts. Zacks research notes
• Neutral Sentiment: Short‑interest data published for early March appears to show zero reported short interest and a 0.0 days‑to‑cover figure — likely a data reporting glitch and not meaningful to the market. (Treat with caution.)
• Neutral Sentiment: Analyst revisions are mixed: Zacks trimmed several near‑term (Q1–Q3 FY2026) estimates and FY2026 EPS while raising some later‑year targets — this creates ambiguity around near‑term guidance versus longer‑term outlook. Zacks estimates changes
• Negative Sentiment: The largest shareholder, SGF FANG Holdings, priced an underwritten secondary offering of 11,000,000 Diamondback shares (gross proceeds ~ $1.9B). Diamondback will receive no proceeds — the sale increases available share supply and creates near‑term selling pressure. The offering is expected to close subject to customary conditions. Secondary offering priced
• Negative Sentiment: Market reports show the large shareholder offering (priced ~ $172.25–$176 per share in some reports) and the launch/pricing have already weighed on the stock, with coverage noting FANG shares moved lower after the announcement. Market reaction to offering
• Negative Sentiment: Significant insider selling by senior executives has been filed: Chairman Travis Stice disclosed large sales (multiple filings) and Director Charles Alvin Meloy also sold shares — combined insider sales increase concern about shareholder exits. Chairman SEC filing Director sale

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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