Diamondback Energy (NASDAQ:FANG) Upgraded to “Strong-Buy” at Zacks Research

Zacks Research upgraded shares of Diamondback Energy (NASDAQ:FANG) from a hold rating to a strong-buy rating in a report published on Thursday,Zacks reports.

A number of other analysts have also commented on FANG. Scotiabank initiated coverage on Diamondback Energy in a research note on Wednesday, October 14th. They issued a “sector outperform” rating and a $250.00 price target for the company. Barclays reduced their price objective on shares of Diamondback Energy from $232.00 to $221.00 and set an “overweight” rating on the stock in a research report on Monday, August 17th. UBS Group upped their price objective on shares of Diamondback Energy from $256.00 to $260.00 and gave the stock a “buy” rating in a report on Wednesday. Truist Financial upped their price objective on shares of Diamondback Energy from $224.00 to $232.00 and gave the stock a “buy” rating in a report on Wednesday. Finally, BMO Capital Markets raised their target price on shares of Diamondback Energy from $215.00 to $224.00 and gave the stock an “outperform” rating in a research report on Friday, October 2nd. Three analysts have rated the stock with a Strong Buy rating, twenty-four have given a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, Diamondback Energy has a consensus rating of “Moderate Buy” and an average target price of $228.29.

Diamondback Energy Trading Down 0.3%

Shares of NASDAQ FANG traded down $0.62 during trading hours on Thursday, hitting $178.96. The company’s stock had a trading volume of 1,636,638 shares, compared to its average volume of 2,034,797. Diamondback Energy has a 12 month low of $139.41 and a 12 month high of $216.90. The stock has a market cap of $50.11 billion, a price-to-earnings ratio of 24.48 and a beta of 0.49. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.45 and a current ratio of 0.47. The business has a 50-day simple moving average of $195.72 and a 200-day simple moving average of $189.95.

Diamondback Energy (NASDAQ:FANG) last released its quarterly earnings results on Monday, November 2nd. The oil and natural gas company reported $5.86 EPS for the quarter, beating analysts’ consensus estimates of $5.72 by $0.14. The business had revenue of $5.43 billion during the quarter, compared to analyst estimates of $4.60 billion. Diamondback Energy had a return on equity of 11.99% and a net margin of 11.03%. Diamondback Energy’s quarterly revenue was up 38.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $3.08 EPS. On average, analysts anticipate that Diamondback Energy will post 22.57 earnings per share for the current fiscal year.

Diamondback Energy Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Thursday, November 12th will be paid a $1.18 dividend. This represents a $4.72 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Thursday, November 12th. This is a boost from Diamondback Energy’s previous quarterly dividend of $1.10. Diamondback Energy’s dividend payout ratio (DPR) is 60.19%.

Insider Buying and Selling

In other Diamondback Energy news, Director Travis D. Stice sold 75,000 shares of the stock in a transaction on Friday, September 11th. The stock was sold at an average price of $204.31, for a total value of $15,323,250.00. Following the completion of the transaction, the director owned 49,727 shares in the company, valued at approximately $10,159,723.37. This represents a 60.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Charles Meloy sold 33,333 shares of the stock in a transaction on Monday, October 5th. The stock was sold at an average price of $183.74, for a total value of $6,124,605.42. Following the completion of the transaction, the director owned 759,864 shares of the company’s stock, valued at approximately $139,617,411.36. This trade represents a 4.20% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.64% of the company’s stock.

Institutional Trading of Diamondback Energy

A number of hedge funds have recently modified their holdings of FANG. BlackRock Inc. bought a new position in shares of Diamondback Energy in the 2nd quarter worth about $3,303,362,000. Wellington Management Group LLP boosted its stake in Diamondback Energy by 31.3% during the second quarter. Wellington Management Group LLP now owns 16,420,247 shares of the oil and natural gas company’s stock worth $2,886,351,000 after acquiring an additional 3,918,943 shares in the last quarter. State Street Corp boosted its stake in Diamondback Energy by 4.2% during the second quarter. State Street Corp now owns 12,562,224 shares of the oil and natural gas company’s stock worth $2,208,188,000 after acquiring an additional 510,281 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in Diamondback Energy during the second quarter worth about $852,791,000. Finally, Diamond Hill Capital Management LLC Investment Advisor bought a new stake in Diamondback Energy during the second quarter worth about $268,855,000. Institutional investors own 90.01% of the company’s stock.

Key Diamondback Energy News

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

• Positive Sentiment: Diamondback raised its dividend by 7.3%, adding to the income case for the stock. Article: Diamondback Just Raised Its Dividend 7.3%
• Positive Sentiment: UBS raised its price target to $260 and maintained a Buy rating, signaling substantial potential upside in the analyst’s view. Article: UBS Group Forecasts Strong Price Appreciation for Diamondback Energy
• Positive Sentiment: Zacks added FANG to its #1 (Strong Buy) rankings for income, value, and overall stock selection. These screen-based endorsements may support sentiment, though they are not guarantees of performance. Article: New Strong Buy Stocks for November 6th
• Positive Sentiment: Management raised its 2026 production outlook and highlighted disciplined spending, improving Barnett well economics, and recovery technology as part of its Permian growth strategy. Article: FANG Q3 Earnings Call Highlights Capital Discipline and Permian Growth
• Neutral Sentiment: Diamondback said it will reinvest its Viper Energy distributions in Viper equity, a capital-allocation decision that increases its Viper exposure but does not itself represent a cash payout to FANG shareholders. Article: Viper Energy Adopts Distribution Reinvestment Plan
• Neutral Sentiment: Other recent coverage described analyst opinions on Diamondback as mixed, tempering the positive signal from UBS’s target increase. Article: Analysts’ Opinions Are Mixed on These Energy Stocks

Diamondback Energy Company Profile

Diamondback Energy is an independent oil and natural gas company focused on the development and production of energy resources in the Permian Basin, primarily in West Texas and southeastern New Mexico. Its operations include exploration, drilling and production.

The company produces crude oil, natural gas and natural gas liquids. Its activities are concentrated in the Midland and Delaware Basin regions, where it develops oil and gas properties and related reserves.

Founded in 2007 and headquartered in Midland, Texas, Diamondback has expanded its Permian Basin operations over time, including through acquisitions.