Diamondback Energy Reports Quarterly Earnings and Insider Selling
On May 1st, Diamondback Energy (NASDAQ:FANG) released its quarterly earnings data, reporting an EPS of $4.10. This missed the consensus estimate of $4.33 by ($0.23). Despite this, the company maintained a net margin of 47.15% and a return on equity of 27.02%. Additionally, the company’s revenue for the quarter was $1.93 billion, which slightly exceeded analyst estimates.
However, the company has experienced some insider selling in recent weeks that may be cause for concern among investors. COO Daniel N. Wesson sold 3,000 shares of Diamondback Energy stock on June 9th at an average price of $132.51 for a total value of $397,530. Following the sale completion, Wesson currently owns 65,802 shares valued at roughly $8,719,423.
Similarly, CEO Travis D. Stice sold 11,600 shares at an average price of $132.13 on June 13th for a total transaction value of $1,532,708. Following the sale completion, Stice directly owns 23,400 shares valued at approximately $3,091,842.
In total last quarter there were insider sales totaling to 22,100 shares valued at $2,920988 which contributes to .042% ownership by company insiders.
Despite these sales by insiders raising concerns with some investors and analysts alike; many are keeping a close eye on Diamondback Energy due to its market capitalization being valued highly at around $23 bn and earnings-per-share growth ratio standing at roughly .32x as well as it’s beta being around +2 overindustry averages sitting at one year high this stock is still regarded favorably among industry analysts who are paying attention due to oil derivatives increased demand since global economies continue to reopen after a pandemic year.
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Diamondback Energy’s Q1 2024 EPS Estimates Revised Downward, Analysts React
Diamondback Energy, Inc. (NASDAQ:FANG) recently had its Q1 2024 EPS estimates revised downwards by Seaport Res Ptn in a research report released on June 21st. The oil and natural gas company is now anticipated to post earnings of $3.94 per share for the quarter, down from the previous forecast of $4.37. This information has resulted in changes to the consensus estimate for Diamondback Energy’s current full-year earnings, which are now projected at $18.22 per share.
This reduction in earnings estimates has prompted investors to reassess their positions with respect to Diamondback Energy shares. Analysts at Barclays have upped their price objective following the recent deductions, while Mizuho decreased their price targets from $177.00 to $174.00 in a recent research note.
Recently, StockNews.com upgraded shares of Diamondback Energy from a “sell” rating to “hold,” further confusing investors who are trying to make a sense of what is happening within this company.
However, according to Bloomberg reports, Diamondback Energy presently has an average rating of “Moderate Buy” and an average price target of $177.18 despite all the contradicting reports.
Institutional investors and hedge funds own 89.21% of the firm’s stock, with Fragasso Group Inc., Patriot Financial Group Insurance Agency LLC, Disciplined Investments LLC among others buying new positions in Diamondback Energy during the 4th quarter.
The mixed reactions from Wall Street analysts could be attributed to several factors that may affect or not entirely influence these predictions: new leadership transitions, fluctuations in gas prices and demand amid climate change concerns amongst other factors that could influence this industry’s performance over time.
Although it’s important not to rely too heavily on short-term prediction cycles as macroeconomic forces can often exert greater influences than individual investments based on various internal or external factors implied herein; therefore, it is essential to watch the trends and shifts in Diamondback Energy’s market position over the coming quarters.