Diamondback Energy (NASDAQ:FANG) Raised to Strong-Buy at Zacks Research

Diamondback Energy (NASDAQ:FANG) was upgraded by investment analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a report released on Thursday, Zacks reports.

Several other brokerages have also weighed in on FANG. Raymond James Financial restated a “strong-buy” rating on shares of Diamondback Energy in a research note on Thursday, September 17th. Truist Financial increased their price target on Diamondback Energy from $224.00 to $232.00 and gave the stock a “buy” rating in a research report on Wednesday. Wells Fargo & Company dropped their price objective on Diamondback Energy from $263.00 to $244.00 and set an “overweight” rating on the stock in a report on Wednesday. Capital One Financial boosted their price objective on Diamondback Energy from $272.00 to $283.00 and gave the company an “overweight” rating in a research report on Wednesday, August 19th. Finally, Seaport Research Partners started coverage on Diamondback Energy in a research note on Thursday, September 3rd. They set a “neutral” rating for the company. Three investment analysts have rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $228.29.

Diamondback Energy Stock Performance

FANG stock traded down $0.62 during midday trading on Thursday, hitting $178.96. 1,636,638 shares of the stock traded hands, compared to its average volume of 2,034,797. The firm has a market cap of $50.11 billion, a P/E ratio of 24.48 and a beta of 0.49. The company has a debt-to-equity ratio of 0.25, a current ratio of 0.47 and a quick ratio of 0.45. The stock’s fifty day simple moving average is $195.72 and its 200-day simple moving average is $189.95. Diamondback Energy has a 1-year low of $139.41 and a 1-year high of $216.90.

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

Insider Activity

In related news, Director Charles Meloy sold 33,333 shares of Diamondback Energy stock in a transaction dated 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 sale, the director directly owned 759,864 shares in the company, valued at approximately $139,617,411.36. The trade was a 4.20% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Travis D. Stice sold 75,000 shares of the business’s stock in a transaction that occurred 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 sale, the director owned 49,727 shares of the company’s stock, valued at approximately $10,159,723.37. This trade represents a 60.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.64% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Diamondback Energy

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Waverly Advisors LLC lifted its stake in shares of Diamondback Energy by 347.1% in the second quarter. Waverly Advisors LLC now owns 164,536 shares of the oil and natural gas company’s stock worth $28,922,000 after buying an additional 127,732 shares in the last quarter. Envestnet Asset Management Inc. grew its stake in Diamondback Energy by 3.3% during the 2nd quarter. Envestnet Asset Management Inc. now owns 512,271 shares of the oil and natural gas company’s stock valued at $90,047,000 after acquiring an additional 16,424 shares in the last quarter. USA Financial Formulas purchased a new stake in Diamondback Energy during the 3rd quarter valued at about $1,141,000. Robinhood Asset Management LLC purchased a new stake in Diamondback Energy during the 2nd quarter valued at about $11,307,000. Finally, Goehring & Rozencwajg Associates LLC raised its holdings in Diamondback Energy by 33.1% in the 1st quarter. Goehring & Rozencwajg Associates LLC now owns 113,489 shares of the oil and natural gas company’s stock valued at $22,447,000 after acquiring an additional 28,246 shares during the last quarter. Hedge funds and other institutional investors own 90.01% of the company’s stock.

Key Headlines Impacting Diamondback Energy

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.