Should You Invest in Diamondback Energy Inc (FANG) Now?

Diamondback Energy Inc (NASDAQ: FANG) has a higher price-to-earnings ratio of 11.55x compared to its average ratio, The 36-month beta value for FANG is at 1.93. Analysts have varying views on the stock, with 19 analysts rating it as a “buy,” 9 rating it as “overweight,” 2 as “hold,” and 0 as “sell.”

The public float for FANG is 177.44M, and currently, shorts hold a 3.11% of that float. The average trading volume for FANG on April 03, 2024 was 1.84M shares.

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FANG) stock’s latest price update

The stock of Diamondback Energy Inc (NASDAQ: FANG) has increased by 0.46 when compared to last closing price of 199.45. Despite this, the company has experienced a 1.92% gain in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-02 that Diamondback (FANG) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.

FANG’s Market Performance

Diamondback Energy Inc (FANG) has seen a 1.92% rise in stock performance for the week, with a 9.50% gain in the past month and a 30.74% surge in the past quarter. The volatility ratio for the week is 1.43%, and the volatility levels for the past 30 days are at 1.46% for FANG. The simple moving average for the last 20 days is 5.68% for FANG stock, with a simple moving average of 30.60% for the last 200 days.

Analysts’ Opinion of FANG

Many brokerage firms have already submitted their reports for FANG stocks, with BofA Securities repeating the rating for FANG by listing it as a “Neutral.” The predicted price for FANG in the upcoming period, according to BofA Securities is $170 based on the research report published on February 12, 2024 of the current year 2024.

Citigroup, on the other hand, stated in their research note that they expect to see FANG reach a price target of $170, previously predicting the price at $160. The rating they have provided for FANG stocks is “Neutral” according to the report published on October 23rd, 2023.

The Benchmark Company gave a rating of “Buy” to FANG, setting the target price at $154 in the report published on July 13th of the previous year.

FANG Trading at 15.77% from the 50-Day Moving Average

After a stumble in the market that brought FANG to its low price for the period of the last 52 weeks, the company was able to rebound, for now settling with 0.25% of gains for the given period.

Volatility was left at 1.46%, however, over the last 30 days, the volatility rate increased by 1.43%, as shares surge +12.01% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +32.64% upper at present.

During the last 5 trading sessions, FANG rose by +1.92%, which changed the moving average for the period of 200-days by +58.05% in comparison to the 20-day moving average, which settled at $190.67. In addition, Diamondback Energy Inc saw 30.74% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at FANG starting from Zmigrosky Matt, who sale 5,000 shares at the price of $193.94 back on Mar 21 ’24. After this action, Zmigrosky Matt now owns 44,445 shares of Diamondback Energy Inc, valued at $969,684 using the latest closing price.

Dick Teresa L., the CAO, Exec. VP, Assist. Sec. of Diamondback Energy Inc, sale 2,000 shares at $193.92 during a trade that took place back on Mar 21 ’24, which means that Dick Teresa L. is holding 94,523 shares at $387,840 based on the most recent closing price.

Stock Fundamentals for FANG

Current profitability levels for the company are sitting at:

  • 0.39 for the present operating margin
  • 0.67 for the gross margin

The net margin for Diamondback Energy Inc stands at 0.38. The total capital return value is set at 0.12. Equity return is now at value 19.73, with 11.30 for asset returns.

Based on Diamondback Energy Inc (FANG), the company’s capital structure generated 0.29 points at debt to capital in total, while cash flow to debt ratio is standing at 0.87. The debt to equity ratio resting at 0.41. The interest coverage ratio of the stock is 34.9.

Currently, EBITDA for the company is 6.39 billion with net debt to EBITDA at 1.01. When we switch over and look at the enterprise to sales, we see a ratio of 5.01. The receivables turnover for the company is 9.89for trailing twelve months and the total asset turnover is 0.29. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.77.

Conclusion

In conclusion, Diamondback Energy Inc (FANG) has had a better performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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