Diamondback Energy Inc. [NASDAQ: FANG] price plunged by -1.65 percent to reach at -$1.81. The company report on October 13, 2021 that Rattler Midstream LP, a Subsidiary of Diamondback Energy, Inc., Announces Strategic Midland Basin Gas Gathering & Processing Joint Venture.
On October 5, 2021 Rattler Midstream LP (NASDAQ: RTLR) (“Rattler”), a subsidiary of Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), and a private affiliate of an investment fund, completed an acquisition of a majority interest in a Midland Basin gas gathering and processing company from West Texas Gas, Inc. and its affiliates through a joint venture. Rattler invested approximately $104 million in cash to acquire a minority interest in the joint venture. The joint venture’s assets primarily consist of an interconnected gas gathering system and six major gas processing plants servicing the Midland Basin with 925 MMcf/d of total processing capacity with additional gas gathering and processing expansions planned.
“This deal highlights the strategic relationship between Diamondback and Rattler as this is the sixth significant joint venture with Diamondback as a major customer in which Rattler has participated. With Diamondback deploying a majority of its development capital in the Northern Midland Basin, expanded gas gathering and processing capacity and an enhanced relationship with a crucial midstream partner with strong financial backing will support Diamondback’s upstream development. For Rattler, the joint venture is an attractive opportunity to invest in a growing gas gathering and processing system in the core of the Midland Basin,” stated Travis Stice, Chief Executive Officer of Rattler’s General Partner.
A sum of 2903515 shares traded at recent session while its average daily volume was at 2.55M shares. Diamondback Energy Inc. shares reached a high of $109.62 and dropped to a low of $104.84 until finishing in the latest session at $108.19.
The one-year FANG stock forecast points to a potential upside of 3.68. The average equity rating for FANG stock is currently 1.80, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on 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 4.32, with the Price to Sales ratio for FANG stock in the period of the last 12 months amounting to 4.30. The Price to Book ratio for the last quarter was 1.79, with the Price to Cash per share for the same quarter was set at 1.99. Price to Free Cash Flow for FANG in the course of the last twelve months was 8.28 with Quick ratio for the last quarter at 0.60.
FANG Stock Performance Analysis:
Diamondback Energy Inc. [FANG] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.92. With this latest performance, FANG shares gained by 42.96% in over the last four-week period, additionally plugging by 36.81% over the last 6 months – not to mention a rise of 255.77% 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 74.81, with the RSI for the last a single of trading hit 76.14, and the three-weeks RSI is set at 71.44 for Diamondback Energy Inc. [FANG]. The present Moving Average for the last 50 days of trading for this stock 83.61, while it was recorded at 108.79 for the last single week of trading, and 78.05 for the last 200 days.
Insight into Diamondback Energy Inc. Fundamentals:
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.
FANG Stock EPS
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 54.60%.
Diamondback Energy Inc. [FANG] Insider Position Details
There are presently around $17,657 million, or 89.20% 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 $1.59 billion in FANG stocks shares; and BLACKROCK INC., currently with $1.34 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 November and at the time of the November reporting period, where 370 institutional holders increased their position in Diamondback Energy Inc. [NASDAQ:FANG] by around 13,557,791 shares. Additionally, 249 investors decreased positions by around 11,216,319 shares, while 91 investors held positions by with 138,425,834 shares. The mentioned changes placed institutional holdings at 163,199,944 shares, according to the latest SEC report filing. FANG stock had 122 new institutional investments in for a total of 3,751,508 shares, while 65 institutional investors sold positions of 1,598,066 shares during the same period.