Diamondback Energy, Inc. $FANG Stake Lowered by Smead Capital Management Inc.

Key Points

• Smead Capital Management cut its Diamondback Energy stake by 6.4% in the fourth quarter, but it still held 1.23 million shares worth about $184.6 million, making FANG its 10th-largest holding.
• Diamondback’s latest quarterly results were solid, with EPS of $4.23 beating estimates and revenue of $4.24 billion topping forecasts; the company also raised its quarterly dividend to $1.10 per share.
• Despite the positive operating performance, insider selling has been notable, including recent sales by EVP Matt Zmigrosky and CFO Jere W. Thompson III, while analysts remain mostly bullish with an average Buy rating and a $221.84 price target.

Smead Capital Management Inc. lowered its holdings in Diamondback Energy, Inc. (NASDAQ:FANG - Free Report) by 6.4% during the fourth quarter, according to the company in its most recent filing with the SEC. The fund owned 1,227,772 shares of the oil and natural gas company's stock after selling 84,641 shares during the quarter. Diamondback Energy comprises 3.8% of Smead Capital Management Inc.'s investment portfolio, making the stock its 10th biggest holding. Smead Capital Management Inc. owned about 0.43% of Diamondback Energy worth $184,571,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in FANG. Flagship Harbor Advisors LLC acquired a new stake in shares of Diamondback Energy in the 4th quarter valued at about $25,000. Richardson Financial Services Inc. boosted its position in shares of Diamondback Energy by 245.1% in the 4th quarter. Richardson Financial Services Inc. now owns 176 shares of the oil and natural gas company's stock valued at $26,000 after purchasing an additional 125 shares during the period. Laurel Wealth Advisors LLC acquired a new stake in shares of Diamondback Energy in the 4th quarter valued at about $26,000. JPL Wealth Management LLC acquired a new stake in shares of Diamondback Energy in the 3rd quarter valued at about $26,000. Finally, Lloyd Advisory Services LLC. acquired a new stake in shares of Diamondback Energy in the 4th quarter valued at about $31,000. Hedge funds and other institutional investors own 90.01% of the company's stock.

Insiders Place Their Bets

In related news, EVP Matt Zmigrosky sold 5,000 shares of Diamondback Energy stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $200.10, for a total value of $1,000,500.00. Following the sale, the executive vice president directly owned 51,392 shares in the company, valued at $10,283,539.20. The trade was a 8.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Jere W. Thompson III sold 750 shares of Diamondback Energy 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 owned 19,975 shares in the company, valued at approximately $3,644,838.25. This trade represents a 3.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 174,321 shares of company stock worth $32,090,475. Corporate insiders own 0.64% of the company's stock.

Diamondback Energy Trading Down 0.1%

NASDAQ:FANG opened at $200.71 on Friday. The firm has a market cap of $56.46 billion, a P/E ratio of 233.39 and a beta of 0.46. The company has a current ratio of 0.56, a quick ratio of 0.55 and a debt-to-equity ratio of 0.31. The stock's 50 day simple moving average is $194.16 and its 200-day simple moving average is $169.89. Diamondback Energy, Inc. has a 12-month low of $133.75 and a 12-month high of $214.51.

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

Diamondback Energy Increases Dividend

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

More Diamondback Energy News

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

• Positive Sentiment: Oil prices remain elevated, which is helping Permian Basin producers like Diamondback Energy. One article noted that higher WTI and more gas production per barrel could be a tailwind for FANG’s revenue and cash flow. Article link
• Positive Sentiment: Broader energy coverage also highlighted Diamondback as a beneficiary if oil supply stays tight, with commentary suggesting U.S. energy stocks could continue to outperform as global reserves are drawn down. Article link
• Neutral Sentiment: Diamondback’s recent earnings beat and dividend increase continue to support the stock’s fundamental case, but these were already known from the company’s latest quarterly report and are not new catalysts.
• Negative Sentiment: Diamondback CAO Teresa L. Dick sold 5,000 shares at $207 each, which can weigh on investor sentiment because insider selling is often viewed cautiously. SEC Form 4 filing
• Negative Sentiment: Zacks Research trimmed several near- and medium-term earnings estimates for FANG, including Q2 2027, Q3 2027, Q1 2028 and FY2028, signaling somewhat softer expectations even though the firm kept a Strong-Buy rating. Zacks analyst note

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on FANG. Benchmark cut Diamondback Energy from a "buy" rating to a "hold" rating in a research report on Thursday, March 5th. UBS Group upped their target price on Diamondback Energy from $240.00 to $245.00 and gave the company a "buy" rating in a research report on Friday, April 10th. Scotiabank lifted their target price on Diamondback Energy from $175.00 to $195.00 and gave the company a "sector outperform" rating in a research note on Wednesday, April 22nd. Raymond James Financial reiterated a "strong-buy" rating and issued a $242.00 target price on shares of Diamondback Energy in a research note on Monday, April 27th. Finally, Citigroup boosted their target price on Diamondback Energy from $225.00 to $245.00 and gave the company a "buy" rating in a report on Wednesday. Five research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Buy" and an average price target of $221.84.

About Diamondback Energy

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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