Gabriele Sorbara, an analyst from Siebert Williams Shank & Co, maintained the Buy rating on Diamondback (FANG – Research Report). The associated price target was lowered to $161.00.
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Gabriele Sorbara has given his Buy rating due to a combination of factors related to Diamondback’s recent performance and strategic positioning. The company has reported oil production figures that slightly exceeded both the firm’s and consensus estimates, while also achieving a higher than expected blended pre-hedge realized price. Additionally, Diamondback’s capital expenditure came in below both the firm’s and consensus estimates, indicating efficient cost management.
Moreover, Diamondback has demonstrated strong shareholder returns, with significant stock buybacks and a robust capital returns yield. The company’s ability to generate substantial free cash flow even at lower oil prices further supports its financial stability. Sorbara also notes that Diamondback’s strong asset base in the Midland Basin and its proactive approach to monitoring the energy landscape contribute to the low risk associated with its future performance, justifying the premium valuation and Buy rating.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $186.00 price target.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FANG in relation to earlier this year.