Encompass Capital Advisors LLC Increases Stock Position in Diamondback Energy, Inc. $FANG

Key Points

• Encompass Capital Advisors LLC increased its holdings in Diamondback Energy by 69.3%, now owning approximately $75.5 million worth of shares, making it the company's 9th largest position.
• Diamondback Energy reported earnings of $2.67 per share for the latest quarter, missing analysts' estimates and showing a 48.1% increase in quarterly revenue compared to the previous year.
• The firm declared a quarterly dividend of $1.00 per share, translating to an annualized yield of 2.8%, with a payout ratio of 28.43%.

Encompass Capital Advisors LLC grew its position in Diamondback Energy, Inc. (NASDAQ:FANG - Free Report) by 69.3% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 471,944 shares of the oil and natural gas company's stock after purchasing an additional 193,181 shares during the period. Diamondback Energy makes up approximately 2.9% of Encompass Capital Advisors LLC's investment portfolio, making the stock its 9th largest holding. Encompass Capital Advisors LLC owned 0.16% of Diamondback Energy worth $75,454,000 at the end of the most recent reporting period.

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

Insider Transactions at Diamondback Energy

In other Diamondback Energy news, Chairman Travis D. Stice sold 20,400 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $142.80, for a total transaction of $2,913,120.00. Following the completion of the sale, the chairman directly owned 102,145 shares in the company, valued at $14,586,306. This trade represents a 16.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.70% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on FANG. Susquehanna lowered their target price on Diamondback Energy from $192.00 to $188.00 and set a "positive" rating on the stock in a research report on Wednesday, July 23rd. Raymond James Financial lowered their target price on Diamondback Energy from $221.00 to $212.00 and set a "strong-buy" rating on the stock in a research report on Wednesday, August 20th. Wall Street Zen downgraded Diamondback Energy from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Bank of America lifted their target price on Diamondback Energy from $165.00 to $170.00 and gave the company a "buy" rating in a research report on Friday, May 23rd. Finally, William Blair began coverage on Diamondback Energy in a research report on Monday, August 25th. They issued an "outperform" rating on the stock. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Buy" and an average target price of $193.17.

Diamondback Energy Stock Performance

Shares of FANG traded down $4.03 during trading hours on Friday, hitting $138.71. The company had a trading volume of 1,993,976 shares, compared to its average volume of 1,686,301. The business has a fifty day moving average of $142.93 and a 200-day moving average of $142.77. The company has a quick ratio of 0.52, a current ratio of 0.55 and a debt-to-equity ratio of 0.35. The firm has a market cap of $40.16 billion, a price-to-earnings ratio of 9.86 and a beta of 1.14. Diamondback Energy, Inc. has a 12 month low of $114.00 and a 12 month high of $200.47.

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

Diamondback Energy Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 21st. Shareholders of record on Thursday, August 14th were given a dividend of $1.00 per share. The ex-dividend date was Thursday, August 14th. This represents a $4.00 annualized dividend and a yield of 2.9%. Diamondback Energy's dividend payout ratio (DPR) is 28.43%.

About Diamondback Energy

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.