Citigroup has recently resumed Diamondback Energy Inc (FANG) stock to Neutral rating, as announced on October 14, 2024, according to Finviz. Earlier, on October 4, 2024, BMO Capital Markets had raised the stock from a Market Perform to Outperform, setting a price target of $215 for FANG stock. Barclays also raised Overweight rating with a price target of $210. Additionally, JP Morgan resumed Overweight rating on October 2, 2024, with a target price of $182. Jefferies analysts, in their report published on September 16, 2024, also resumed Hold rating for Diamondback Energy Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Diamondback Energy Inc (FANG) Stock Trading Recap
On Tuesday, Diamondback Energy Inc (FANG) stock saw a decline, ending the day at $175.64 which represents a decrease of $-2.55 or -1.43% from the prior close of $178.19. The stock opened at $177.76 and touched a low of $175.16 during the day, reaching a high of $179.2. The volume of shares traded was 1.68 million falling short of the average volume of 2.07 million.
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FANG Stock Performance and Moving Averages
In recent trading, Diamondback Energy Inc (FANG) stock price has shown some volatility, fluctuating -4.56% over the last five trades and 1.88% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -11.56%, and it has plunged by -12.54% in the previous three months. Currently, FANG is trading at -5.77%, -4.63%, and -5.95% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, FANG, a Energy sector stock, is trading -17.51% below its 52-week high but remains 23.54% above its 52-week low. The Average True Range (ATR) (14 days) of 4.99 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Diamondback Energy Inc’s Profitability and Valuation Ratios
Diamondback Energy Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 52.11% and a profit margin of 37.25%, with a gross margin of -11.56%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Diamondback Energy Inc’s market capitalization stands at $51.77 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 9.08, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 10.28. Additionally, the Price-to-Sales Ratio is 5.58, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.8, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 35.09% of Diamondback Energy Inc (FANG)’s shares, while financial institutions hold 55.61%.
Notable insider trades include Greth Lyndal, 10% Owner at Diamondback Energy Inc (FANG), who sold 13212830 shares on Sep 23 ’24, at $175.11 each, totaling $2313.67 million. On Aug 09 ’24, Dick Teresa L., CAO, Exec. VP, Assist. Sec., sold 5000 shares for $200 each, amounting to $1.00 million. Additionally, on Aug 08 ’24, Van’t Hof Matthew Kaes sold 50000 shares at $198.15 each, generating $9.91 million.
