Diamondback Energy Inc. [NASDAQ: FANG] gained 5.42% or 4.34 points to close at $84.38 with a heavy trading volume of 2792654 shares. The company report on September 17, 2021 that Diamondback Energy, Inc. Accelerates Capital Return to Stockholders and Initiates Share Repurchase Program.
Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) announced that it has accelerated its plans to return 50% of Free Cash Flow to stockholders to the fourth quarter of 2021, and the Board of Directors has approved an up to $2.0 billion share repurchase program to complement this return commitment.
“Diamondback is accelerating its previously announced capital return program due to continued strong operational performance and improved capital efficiency, a supportive macro backdrop and increasing financial strength. Our plan to return 50% of Free Cash Flow quarterly through our base dividend and other return mechanisms will now begin in the fourth quarter of 2021. The remaining Free Cash Flow, as well as asset sale proceeds, will be earmarked for further debt reduction. We expect the previously announced sale of our North Dakota assets to close in the next few weeks, timing dependent on final government approval. The net proceeds from that sale, along with cash on hand, will be used to pay off the remaining $650 million in outstanding callable debt in our capital structure,” stated Travis Stice, Chief Executive Officer of Diamondback.
It opened the trading session at $81.85, the shares rose to $85.25 and dropped to $81.81, the range by which the price of stock traded the whole day. The daily chart for FANG points out that the company has recorded 13.43% gains over the past six months. However, it is still -257.09% lower than its most recent low trading price.
If we look at the average trading volume of 2.46M shares, FANG reached to a volume of 2792654 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Diamondback Energy Inc. [FANG]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for FANG shares is $112.32 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on FANG stock is a recommendation set at 1.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Johnson Rice have made an estimate for Diamondback Energy Inc. shares, keeping their opinion on the stock as Accumulate, with their previous recommendation back on June 08, 2021. While these analysts kept the previous recommendation, Scotiabank raised their target price from $86 to $95. The new note on the price target was released on May 21, 2021, representing the official price target for Diamondback Energy Inc. stock. Previously, the target price had yet another raise to $99, while Goldman analysts kept a Buy rating on FANG stock. On April 15, 2021, analysts increased their price target for FANG shares from 84 to 86.
The Average True Range (ATR) for Diamondback Energy Inc. is set at 3.71, with the Price to Sales ratio for FANG stock in the period of the last 12 months amounting to 3.40. The Price to Book ratio for the last quarter was 1.40, with the Price to Cash per share for the same quarter was set at 1.96. Price to Free Cash Flow for FANG in the course of the last twelve months was 6.55 with Quick ratio for the last quarter at 0.60.
Trading performance analysis for FANG stock
Diamondback Energy Inc. [FANG] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.43. With this latest performance, FANG shares gained by 16.87% in over the last four-week period, additionally plugging by 13.43% over the last 6 months – not to mention a rise of 166.94% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for FANG stock in for the last two-week period is set at 61.32, with the RSI for the last a single of trading hit 65.69, and the three-weeks RSI is set at 57.81 for Diamondback Energy Inc. [FANG]. The present Moving Average for the last 50 days of trading for this stock 77.00, while it was recorded at 81.24 for the last single week of trading, and 74.03 for the last 200 days.
Diamondback Energy Inc. [FANG]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Diamondback Energy Inc. [FANG] shares currently have an operating margin of +19.37 and a Gross Margin at +22.64. Diamondback Energy Inc.’s Net Margin is presently recorded at -160.58.
Return on Total Capital for FANG is now 3.03, given the latest momentum, and Return on Invested Capital for the company is -27.34. Return on Equity for this stock declined to -40.98, with Return on Assets sitting at -21.95. When it comes to the capital structure of this company, Diamondback Energy Inc. [FANG] has a Total Debt to Total Equity ratio set at 67.43. Additionally, FANG Total Debt to Total Capital is recorded at 40.27, with Total Debt to Total Assets ending up at 33.66. Long-Term Debt to Equity for the company is recorded at 63.95, with the Long-Term Debt to Total Capital now at 38.20.
Reflecting on the efficiency of the workforce at the company, Diamondback Energy Inc. [FANG] managed to generate an average of -$6,170,765 per employee. Receivables Turnover for the company is 5.25 with a Total Asset Turnover recorded at a value of 0.14.Diamondback Energy Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 0.60.
Diamondback Energy Inc. [FANG]: An earnings per share (EPS) analysis
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for FANG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Diamondback Energy Inc. go to 53.20%.
An analysis of insider ownership at Diamondback Energy Inc. [FANG]
There are presently around $13,763 million, or 91.40% of FANG stock, in the hands of institutional investors. The top three institutional holders of FANG stocks are: VANGUARD GROUP INC with ownership of 20,645,853, which is approximately 1.76% of the company’s market cap and around 0.10% of the total institutional ownership; CAPITAL RESEARCH GLOBAL INVESTORS, holding 14,742,493 shares of the stock with an approximate value of $1.24 billion in FANG stocks shares; and BLACKROCK INC., currently with $1.04 billion in FANG stock with ownership of nearly 7.145% of the company’s market capitalization.
Positions in Diamondback Energy Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 374 institutional holders increased their position in Diamondback Energy Inc. [NASDAQ:FANG] by around 13,572,253 shares. Additionally, 241 investors decreased positions by around 11,189,702 shares, while 89 investors held positions by with 138,346,528 shares. The mentioned changes placed institutional holdings at 163,108,483 shares, according to the latest SEC report filing. FANG stock had 119 new institutional investments in for a total of 3,689,021 shares, while 61 institutional investors sold positions of 1,582,850 shares during the same period.