William Blair Cuts Earnings Estimates for Diamondback Energy

Key Points

• William Blair has lowered its FY2026 earnings per share (EPS) estimate for Diamondback Energy from $12.42 to $12.27, while the consensus estimate stands at $15.49.
• The stock has received a mixture of ratings, with two analysts giving it a Strong Buy, twenty-one rating it as Buy, and one as Hold, with an average price target of $193.33.
• Diamondback Energy recently declared a quarterly dividend of $1.00 per share, translating to an annualized dividend of $4.00, which results in a yield of 2.7%.

Diamondback Energy, Inc. (NASDAQ:FANG - Free Report) - Research analysts at William Blair decreased their FY2026 EPS estimates for shares of Diamondback Energy in a research note issued on Tuesday, September 2nd. William Blair analyst N. Dingmann now expects that the oil and natural gas company will post earnings of $12.27 per share for the year, down from their prior estimate of $12.42. William Blair currently has a "Outperform" rating on the stock. The consensus estimate for Diamondback Energy's current full-year earnings is $15.49 per share. William Blair also issued estimates for Diamondback Energy's FY2027 earnings at $15.63 EPS, FY2028 earnings at $17.07 EPS and FY2029 earnings at $16.90 EPS.

Diamondback Energy (NASDAQ:FANG - Get Free Report) last released its earnings results on Monday, August 4th. The oil and natural gas company reported $2.67 earnings per share for the quarter, missing analysts' consensus estimates of $2.72 by ($0.05). Diamondback Energy had a net margin of 27.25% and a return on equity of 9.48%. The firm had revenue of $3.68 billion for the quarter, compared to analysts' expectations of $3.35 billion. During the same quarter last year, the firm posted $4.52 EPS. The firm's quarterly revenue was up 48.1% compared to the same quarter last year.

Other analysts have also recently issued research reports about the stock. Bank of America boosted their price target on shares of Diamondback Energy from $165.00 to $170.00 and gave the stock a "buy" rating in a research note on Friday, May 23rd. Wall Street Zen cut shares of Diamondback Energy from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Wells Fargo & Company boosted their price target on shares of Diamondback Energy from $210.00 to $211.00 and gave the stock an "overweight" rating in a research note on Thursday, August 14th. Raymond James Financial decreased their price target on shares of Diamondback Energy from $221.00 to $212.00 and set a "strong-buy" rating on the stock in a research note on Wednesday, August 20th. Finally, Melius Research began coverage on shares of Diamondback Energy in a research note on Wednesday, August 20th. They issued a "buy" rating and a $213.00 price target on the stock. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, Diamondback Energy presently has an average rating of "Buy" and a consensus price target of $193.17.

Diamondback Energy Price Performance

Shares of FANG traded down $4.03 during trading hours on Wednesday, reaching $138.71. 1,993,976 shares of the stock traded hands, compared to its average volume of 1,686,301. The company has a current ratio of 0.55, a quick ratio of 0.52 and a debt-to-equity ratio of 0.35. Diamondback Energy has a 52-week low of $114.00 and a 52-week high of $200.47. The company's 50-day moving average price is $142.93 and its two-hundred day moving average price is $142.77. The company has a market cap of $40.16 billion, a P/E ratio of 9.86 and a beta of 1.14.

Institutional Trading of Diamondback Energy

A number of large investors have recently made changes to their positions in the business. Nuveen LLC bought a new position in Diamondback Energy during the 1st quarter valued at about $230,039,000. Smead Capital Management Inc. bought a new position in Diamondback Energy during the 2nd quarter valued at about $144,775,000. GAMMA Investing LLC grew its holdings in Diamondback Energy by 16,197.8% during the 1st quarter. GAMMA Investing LLC now owns 605,625 shares of the oil and natural gas company's stock valued at $96,827,000 after purchasing an additional 601,909 shares during the last quarter. Adage Capital Partners GP L.L.C. bought a new position in Diamondback Energy during the 1st quarter valued at about $77,622,000. Finally, Two Sigma Investments LP grew its holdings in Diamondback Energy by 5,748.3% during the 4th quarter. Two Sigma Investments LP now owns 448,624 shares of the oil and natural gas company's stock valued at $73,498,000 after purchasing an additional 440,953 shares during the last quarter. 90.01% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Diamondback Energy

In other news, Chairman Travis D. Stice sold 20,400 shares of the business's stock in a transaction dated Thursday, August 7th. The shares were sold at an average price of $142.80, for a total value of $2,913,120.00. Following the sale, the chairman directly owned 102,145 shares in the company, valued at $14,586,306. The trade was a 16.65% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.70% of the stock is currently owned by company insiders.

Diamondback Energy Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 21st. Stockholders of record on Thursday, August 14th were issued a $1.00 dividend. The ex-dividend date was Thursday, August 14th. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.9%. Diamondback Energy's payout ratio is 28.43%.

Diamondback Energy Company Profile

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.