Zacks Research Issues Pessimistic Outlook for FANG Earnings

Diamondback Energy, Inc. (NASDAQ:FANG) – Stock analysts at Zacks Research lowered their FY2024 earnings per share (EPS) estimates for Diamondback Energy in a research note issued to investors on Monday, January 27th. Zacks Research analyst N. Choudhury now anticipates that the oil and natural gas company will post earnings of $15.49 per share for the year, down from their prior estimate of $15.70. The consensus estimate for Diamondback Energy’s current full-year earnings is $15.55 per share. Zacks Research also issued estimates for Diamondback Energy’s Q4 2024 earnings at $3.09 EPS, Q1 2025 earnings at $3.73 EPS, Q2 2025 earnings at $3.26 EPS, Q4 2025 earnings at $2.79 EPS, FY2025 earnings at $13.50 EPS, Q1 2026 earnings at $3.39 EPS, Q2 2026 earnings at $3.33 EPS, Q3 2026 earnings at $3.46 EPS, Q4 2026 earnings at $3.33 EPS and FY2026 earnings at $13.50 EPS.

Diamondback Energy (NASDAQ:FANG) last posted its earnings results on Monday, November 4th. The oil and natural gas company reported $3.38 earnings per share for the quarter, missing analysts’ consensus estimates of $4.62 by ($1.24). The business had revenue of $2.65 billion during the quarter, compared to analysts’ expectations of $2.43 billion. Diamondback Energy had a net margin of 33.64% and a return on equity of 13.68%. The company’s revenue for the quarter was up 13.0% compared to the same quarter last year. During the same period last year, the business posted $5.49 earnings per share.

Other equities research analysts have also recently issued reports about the company. Raymond James boosted their price objective on Diamondback Energy from $237.00 to $256.00 and gave the stock a “strong-buy” rating in a research note on Thursday, January 23rd. StockNews.com raised shares of Diamondback Energy from a “sell” rating to a “hold” rating in a research note on Wednesday, November 13th. Truist Financial increased their target price on shares of Diamondback Energy from $230.00 to $236.00 and gave the company a “buy” rating in a research note on Monday, January 13th. Susquehanna dropped their price target on shares of Diamondback Energy from $237.00 to $233.00 and set a “positive” rating for the company in a research note on Friday, October 18th. Finally, BMO Capital Markets raised shares of Diamondback Energy from a “market perform” rating to an “outperform” rating and raised their price objective for the stock from $205.00 to $215.00 in a research note on Friday, October 4th. Four equities research analysts have rated the stock with a hold rating, eighteen have given a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $215.00.

Diamondback Energy Stock Performance

Shares of NASDAQ:FANG opened at $164.36 on Thursday. The firm has a fifty day simple moving average of $169.40 and a two-hundred day simple moving average of $181.33. The company has a quick ratio of 0.42, a current ratio of 0.45 and a debt-to-equity ratio of 0.31. The stock has a market capitalization of $47.99 billion, a P/E ratio of 9.41, a PEG ratio of 1.33 and a beta of 1.88. Diamondback Energy has a 52 week low of $147.93 and a 52 week high of $214.50.

Institutional Investors Weigh In On Diamondback Energy

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Key Financial Inc increased its holdings in shares of Diamondback Energy by 940.0% during the fourth quarter. Key Financial Inc now owns 208 shares of the oil and natural gas company’s stock valued at $34,000 after acquiring an additional 188 shares in the last quarter. D.A. Davidson & CO. increased its stake in Diamondback Energy by 38.3% during the 4th quarter. D.A. Davidson & CO. now owns 19,612 shares of the oil and natural gas company’s stock valued at $3,213,000 after purchasing an additional 5,427 shares in the last quarter. Truist Financial Corp raised its holdings in shares of Diamondback Energy by 8.3% in the fourth quarter. Truist Financial Corp now owns 581,472 shares of the oil and natural gas company’s stock worth $95,263,000 after buying an additional 44,663 shares during the last quarter. CIBC Asset Management Inc lifted its stake in shares of Diamondback Energy by 37.9% during the fourth quarter. CIBC Asset Management Inc now owns 77,612 shares of the oil and natural gas company’s stock worth $12,715,000 after buying an additional 21,313 shares during the period. Finally, State of New Jersey Common Pension Fund D lifted its position in Diamondback Energy by 8.9% during the 4th quarter. State of New Jersey Common Pension Fund D now owns 67,758 shares of the oil and natural gas company’s stock worth $11,101,000 after acquiring an additional 5,555 shares during the period. 90.01% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other news, Director Mark Lawrence Plaumann sold 1,150 shares of the firm’s stock in a transaction on Wednesday, November 13th. The stock was sold at an average price of $181.00, for a total value of $208,150.00. Following the completion of the sale, the director now owns 4,712 shares of the company’s stock, valued at $852,872. This trade represents a 19.62 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.48% of the company’s stock.

Diamondback Energy Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, November 21st. Investors of record on Thursday, November 14th were paid a dividend of $0.90 per share. This represents a $3.60 dividend on an annualized basis and a dividend yield of 2.19%. The ex-dividend date was Thursday, November 14th. Diamondback Energy’s dividend payout ratio (DPR) is currently 20.61%.

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.