Kovack Advisors Inc. has expanded its holdings in Diamondback Energy, Inc. (NASDAQ:FANG) by 6.4%, acquiring an additional 696 shares during the second quarter of 2023. This growth brings the institutional investor’s total ownership to 11,600 shares, valued at approximately $1,594,000 according to the latest filing with the Securities & Exchange Commission.
Multiple institutional investors have recently adjusted their stakes in Diamondback Energy. Notably, Boston Partners increased its position by 4.8% in the first quarter, amassing a total of 5,418,840 shares worth $861,961,000. Similarly, Bank of New York Mellon Corp raised its ownership by 2.3%, now holding 4,257,247 shares valued at $680,649,000. Other significant investors include Diamond Hill Capital Management Inc. and Wellington Management Group LLP, which grew their stakes to 2,932,484 and 1,950,160 shares, respectively.
As of the latest reports, institutional investors collectively own 90.01% of Diamondback Energy’s stock.
Insider Trading Activity
In related developments, Chairman Travis D. Stice sold 20,400 shares of Diamondback Energy on August 7, 2023, at an average price of $142.80, resulting in a total transaction value of $2,913,120. Following this sale, Stice retains 102,145 shares, now valued at approximately $14,586,306. This transaction represents a 16.65% reduction in his position. Insider ownership remains relatively low, with insiders holding 0.70% of the company’s stock.
Financial Performance and Dividends
Diamondback Energy recently reported its quarterly earnings on August 4, 2023, revealing earnings per share (EPS) of $2.67. This figure fell short of analysts’ expectations, which had estimated EPS at $2.72. The company reported revenue of $3.68 billion, exceeding the consensus estimate of $3.35 billion. Year-over-year, revenue increased by 48.1%, although this is a decrease from the previous year’s EPS of $4.52.
The firm also announced a quarterly dividend of $1.00, paid to shareholders of record on August 14, 2023. This translates to an annualized dividend of $4.00, yielding 2.8%. The ex-dividend date was also set for August 14, and the company’s current dividend payout ratio (DPR) stands at 28.43%.
Analyst Ratings and Future Projections
Recent analyst reports indicate a generally positive outlook for Diamondback Energy. Scotiabank reaffirmed an “outperform” rating on October 9, 2023. UBS Group raised its price target from $163.00 to $171.00, maintaining a “buy” rating. Royal Bank of Canada set a price objective of $173.00, while Evercore ISI adjusted its target to $175.00, also maintaining an “outperform” rating.
According to MarketBeat.com, Diamondback Energy has received an average rating of “buy” with a consensus target price of $189.67. This optimistic view is supported by two analysts rating the stock as a Strong Buy, nineteen as Buy, and one as Hold.
Diamondback Energy, an independent oil and natural gas firm, focuses on acquiring and developing unconventional onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. The company emphasizes the development of key formations such as Spraberry, Wolfcamp, and Bone Spring.
As institutional investment continues to grow and analysts maintain a positive outlook, Diamondback Energy appears well-positioned to navigate the evolving landscape of the oil and gas sector.
