Evaluating Diamondback Energy: Insights From 27 Financial Analysts

Benzinga · 10/18 18:04

27 analysts have expressed a variety of opinions on Diamondback Energy (NASDAQ:FANG) over the past quarter, offering a diverse set of opinions from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 8 16 3 0 0
Last 30D 0 2 0 0 0
1M Ago 4 8 0 0 0
2M Ago 1 3 1 0 0
3M Ago 3 3 2 0 0

In the assessment of 12-month price targets, analysts unveil insights for Diamondback Energy, presenting an average target of $218.85, a high estimate of $255.00, and a low estimate of $154.00. This current average has decreased by 2.26% from the previous average price target of $223.92.

price target chart

Diving into Analyst Ratings: An In-Depth Exploration

The perception of Diamondback Energy by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Roger Read Wells Fargo Lowers Overweight $218.00 $219.00
Biju Perincheril Susquehanna Lowers Positive $233.00 $237.00
Neal Dingmann Truist Securities Raises Buy $230.00 $220.00
Tim Rezvan Keybanc Lowers Overweight $216.00 $225.00
Mark Lear Piper Sandler Raises Overweight $252.00 $240.00
Paul Cheng Scotiabank Lowers Sector Outperform $225.00 $245.00
Phillip Jungwirth BMO Capital Raises Outperform $215.00 $205.00
Subash Chandra Benchmark Raises Buy $195.00 $154.00
Betty Jiang Barclays Lowers Overweight $210.00 $216.00
Arun Jayaram JP Morgan Announces Overweight $182.00 -
Roger Read Wells Fargo Lowers Overweight $219.00 $230.00
Stephen Richardson Evercore ISI Group Lowers Outperform $209.00 $235.00
Neal Dingmann Truist Securities Lowers Buy $220.00 $255.00
Josh Silverstein UBS Lowers Buy $223.00 $247.00
Scott Hanold RBC Capital Maintains Outperform $220.00 $220.00
Devin McDermott Morgan Stanley Raises Overweight $198.00 $185.00
Lloyd Byrne Jefferies Announces Hold $185.00 -
Biju Perincheril Susquehanna Lowers Positive $237.00 $245.00
Josh Silverstein UBS Raises Buy $247.00 $245.00
Mark Lear Piper Sandler Lowers Overweight $240.00 $249.00
Roger Read Wells Fargo Lowers Overweight $230.00 $231.00
Scott Hanold RBC Capital Maintains Outperform $220.00 $220.00
Josh Silverstein UBS Lowers Buy $245.00 $257.00
Betty Jiang Barclays Raises Equal-Weight $216.00 $214.00
Neal Dingmann Truist Securities Raises Buy $255.00 $249.00
Subash Chandra Benchmark Maintains Buy $154.00 $154.00
Kalei Akamine B of A Securities Raises Neutral $215.00 $201.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Diamondback Energy. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Diamondback Energy compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Diamondback Energy's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Diamondback Energy's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Diamondback Energy analyst ratings.

Delving into Diamondback Energy's Background

Diamondback Energy is an independent oil and gas producer in the United States. The company operates exclusively in the Permian Basin. At the end of 2023, the company reported net proven reserves of 2.2 billion barrels of oil equivalent. Net production averaged about 448,000 barrels per day in 2023, at a ratio of 59% oil, 21% natural gas liquids, and 20% natural gas.

Diamondback Energy's Financial Performance

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Diamondback Energy's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 29.34%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Energy sector.

Net Margin: Diamondback Energy's net margin excels beyond industry benchmarks, reaching 33.48%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 4.83%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Diamondback Energy's ROA excels beyond industry benchmarks, reaching 2.54%. This signifies efficient management of assets and strong financial health.

Debt Management: With a high debt-to-equity ratio of 0.69, Diamondback Energy faces challenges in effectively managing its debt levels, indicating potential financial strain.

Analyst Ratings: Simplified

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.