Are You Looking To Buy Diamondback Energy Inc. (FANG)? First, Read This

Diamondback Energy Inc. (NASDAQ:FANG) trading with a subtraction of -$0.79 to $107.40 on Thursday, a downside of -0.73 percent. An average of 2,481,293 shares of common stock have been traded in the last five days. There was a gain of $2.23 in the past week, and it reached a new high 41 times over the past 12 months. The last 20 days have seen an average of 3,082,364 shares traded, while the 50-day average volume stands at 2,544,421.

FANG stock has increased by 42.96% in the last month. The company shares reached their 1-month lowest point of $77.21 on 09/20/21. With the stock rallying to its 52-week high on 10/11/21, shares of the company touched a low of $23.63 and a high of $114.10 in 52 weeks. It has reached a new high 28 times so far this year and achieved 123.53% or $58.95 in price. In spite of this, the price is down -5.87% from the 52-week high.


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Insider Transactions

105 days have passed since Diamondback Energy Inc. (FANG) last reported insider trading activity. Stice Travis D., who is Chief Executive Officer, most recently acquired $40,000 shares at $100.00 per share on Jul 01. In this transaction, the insider spent $4,000,000. CFO & Exec. VP – Bus Dev, Van’t Hof Matthew Kaes, disposed of 1,100 shares at a price of $89.78 on Jun 08. The insider now owns more than $98,755 worth of shares. Prior to that, CAO, Exec. VP, Assist. Sec. Dick Teresa L. went on to Sale 5,000 shares at $89.50 each on Jun 08. An amount of $447,500 was transacted.

Valuation Metrics

Diamondback Energy Inc. (FANG) has a trailing price-to-earnings (P/E) ratio of 18.90 for the broader industry and 19.84 for the sector. In the last five years, Diamondback Energy Inc.’s PE ratio has ranged between 69.37 and 10.71. The stock’s beta is 2.58. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.30, the price-to-book (PB) ratio at 1.79, and the price-to-cash flow ratio at 8.28.

Diamondback Energy Inc. pays a $1.80 dividend per share annually. It offers a dividend yield of 1.68%. The company’s most recent quarterly dividend payment took place on Aug. 19, and it was $0.45 a share, representing a up of 11.11 from $0.40 last year. Its dividend has been increased for the last 2 consecutive years with the latest increase dividend $0.05 reported on Monday August 2 2021.

Diamondback Energy Inc. will next go ex-dividend on 15-Nov. The next dividend payment Diamondback Energy Inc. will make is expected to be $0.45.

The quick ratio of Diamondback Energy Inc. for the three months ended June 29 was 0.60, and the current ratio was 0.60, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.67 and a total debt to equity ratio of 0.67 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 77.20% against a 5-year average of 44.5%. Diamondback Energy Inc.’s EBITDA margin for the year ending June 29 is 65.98%, while its operating margin for the same period stands at -12.40%. Its gross profit as reported stood at -$5.48 billion compared to revenue of $2.81 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Diamondback Energy Inc.’s return on assets was -6.50%, compared to -2.4% over the last five years. In the past year, the return on investment has been -31.20%, and the 5-year average is -2.6%. Meanwhile, the return on equity (ROE) for the past 12 months has been -13.20% and the 5-year average holds at -5.1%. For the broader industry, ROE averaged 12.45 over the past year.

Earnings Surprise

For the three-month period that ended June 29, Diamondback Energy Inc. had $7.36 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $311.0 million in the quarter, while revenues of $220.0 million were grew 869.45%. The analyst consensus anticipated Diamondback Energy Inc.’s latest quarter earnings to come in at $2.19 per share, but it turned out to be $2.4, a 9.60% surprise. For the quarter, EBITDA amounted to $1.3 billion. Shareholders own equity worth $181.05 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Diamondback Energy Inc. (FANG) price momentum. RSI 9-day as of the close on 13 October was 72.37%, suggesting the stock is Overbought, with historical volatility in this time frame at 31.78%.

As of today, FANG’s price is $109.23 +2.12% or $2.23 from its 5-day moving average. FANG is currently trading +34.07% higher than its 20-day SMA and +38.87% higher than its 100-day SMA. However, the stock’s current price level is +40.47% above the SMA50 and +128.40% above the SMA200.

The stochastic %K and %D were 78.22% and 84.74%, respectively, and the average true range (ATR) was 4.41. With the 14-day stochastic at 70.09% and the average true range at 4.28, the RSI (14) stands at 72.56%. The stock has reached 1.52 on the 9-day MACD Oscillator while the 14-day reading was at 5.44.

Analyst Ratings

Johnson Rice upgraded Diamondback Energy Inc. (NASDAQ: FANG) to a a Accumulate rating in its most recent analyst report. Previously, the stock was rated as a a Hold.The consensus rating for Diamondback Energy Inc. (FANG) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell FANG, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 3 analysts, while 28 others rate it as a “buy”.

What is FANG’s price target for the next 12 months?

Analysts predict a range of price targets between $100.00 and $148.00, with a median target of $115.00. Taking a look at these predictions, the average price target given by analysts for Diamondback Energy Inc. (FANG) stock is $118.21.

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