Wellington Management Group LLP Acquires 3,918,943 Shares of Diamondback Energy, Inc. $FANG

Key Points

• Wellington Management increased its Diamondback Energy stake by 31.3% in the second quarter, buying 3.92 million additional shares and bringing its holdings to 16.42 million shares, or 5.86% of the company.
• Diamondback reported strong quarterly results, with EPS of $6.48 beating estimates and revenue rising 51.2% year over year to $5.56 billion. The company also declared a $1.10 quarterly dividend, equal to a 2.2% annualized yield.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and a $222.21 price target, although insiders sold approximately $24.7 million of stock over the past 90 days.

Wellington Management Group LLP raised its holdings in Diamondback Energy, Inc. (NASDAQ:FANG - Free Report) by 31.3% during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 16,420,247 shares of the oil and natural gas company's stock after purchasing an additional 3,918,943 shares during the quarter. Wellington Management Group LLP owned 5.86% of Diamondback Energy worth $2,886,351,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently modified their holdings of the business. Laurel Wealth Advisors LLC bought a new stake in shares of Diamondback Energy during the 4th quarter worth $26,000. Cedar Mountain Advisors LLC bought a new position in Diamondback Energy in the first quarter valued at about $26,000. JPL Wealth Management LLC bought a new position in Diamondback Energy in the third quarter valued at about $26,000. Wellington Shields & Co. LLC grew its position 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 valued at $28,000 after acquiring an additional 135 shares during the last quarter. Finally, Meeder Asset Management Inc. acquired a new position in Diamondback Energy during the second quarter worth about $28,000. Institutional investors own 90.01% of the company's stock.

Insider Buying and Selling at Diamondback Energy

In related news, Director Mark Lawrence Plaumann sold 500 shares of the business's stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $196.50, for a total value of $98,250.00. Following the sale, the director owned 13,437 shares of the company's stock, valued at $2,640,370.50. The trade was a 3.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Matt Zmigrosky sold 5,000 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $200.54, for a total value of $1,002,700.00. Following the completion of the sale, the executive vice president owned 46,392 shares of the company's stock, valued at $9,303,451.68. The trade was a 9.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 129,167 shares of company stock worth $24,714,309 over the last ninety days. Insiders own 0.64% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on FANG shares. Zacks Research cut shares of Diamondback Energy from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 28th. Morgan Stanley reaffirmed an "equal weight" rating and set a $216.00 price target on shares of Diamondback Energy in a report on Wednesday, August 19th. Roth Capital set a $212.00 price objective on shares of Diamondback Energy and gave the stock a "buy" rating in a research report on Monday, June 22nd. Raymond James Financial reissued a "strong-buy" rating and issued a $248.00 price objective on shares of Diamondback Energy in a research note on Friday, July 31st. Finally, Wall Street Zen upgraded shares of Diamondback Energy from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Four research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $222.21.

Diamondback Energy Stock Performance

NASDAQ:FANG opened at $197.67 on Friday. The stock's 50-day moving average is $193.25 and its 200-day moving average is $190.49. Diamondback Energy, Inc. has a 1-year low of $134.30 and a 1-year high of $216.90. The company has a current ratio of 0.47, a quick ratio of 0.45 and a debt-to-equity ratio of 0.25. The stock has a market cap of $55.35 billion, a P/E ratio of 38.53 and a beta of 0.43.

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 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.08 by $0.40. Diamondback Energy had a net margin of 8.58% and a return on equity of 10.10%. The business had revenue of $5.56 billion during the quarter, compared to analyst estimates of $4.89 billion. During the same quarter last year, the business earned $2.38 EPS. The firm's quarterly revenue was up 51.2% on a year-over-year basis. Equities research analysts anticipate that Diamondback Energy, Inc. will post 20.13 earnings per share for the current year.

Diamondback Energy Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Thursday, August 13th were given a $1.10 dividend. This represents a $4.40 annualized dividend and a yield of 2.2%. The ex-dividend date was Thursday, August 13th. Diamondback Energy's dividend payout ratio is 85.77%.

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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