Diamondback Energy, Inc. (FANG) Insider Selling Portends a Decline in Stock

The insider sell/buy ratio of Diamondback Energy, Inc. (NASDAQ:FANG) is recorded at 3, pointing to bearish feelings about the stock among corporate executives and directors. FANG recorded 3 sales on the open market in the last three months. They sold nearly 8,032 shares while purchases amounted to zero shares that period. Looking even further back to 12 months, corporate insiders offloaded 287,263 shares when buyers snapped up 417,461 shares. The 12-month’s totals signify about a 0.69-to-1 sell/buy ratio.

Pantermuehl Russell parted with a total of 1.03 thousand shares of Diamondback Energy, Inc. (FANG) at average share price of $129.3. This insider trade in the company took place on 09/20/2018. The total for the sales was set at $133.44 thousand. After this transaction, the Exec. VP Reservoir Engineering account balance stood at 88.5 thousand shares. The stock lost -22.83 percent since that insider sale. On 09/20/2018, Molnar Paul, Exec. VP Exploration & Bus Dev, sold 5 thousand shares at a price per share of $127.64. This removed 638.2 thousand shares from the insider’s fortune and the stock saw a -21.83 percent retreat in value since the news became public. This transaction left 38.56 thousand shares in the Exec. VP Exploration & Bus Dev account.

On 09/19/2018, Exec. VP Reservoir Engineering Pantermuehl Russell performed a sale transaction worth $255.6 thousand. This sale at $127.8 each has eliminated 2 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -21.92 percent decrease since the transaction was reported. The insider now is left with 89.53 thousand shares remaining in the account. Van’T Hof Matthew Kaes, who performs the Sr. VP – Strategy & Corp Dev job, sold 0.14 thousand shares for $16.89 thousand. The disposal occurred on 09/04/2018 was priced at $120.61 per share. The share price plunged -17.27 percent since the reporting date. Van’T Hof Matthew Kaes now left with a stake of 6.76 thousand FANG stock worth $688 thousand after the insider selling.

The 12-month median price target for Diamondback Energy, Inc. (FANG) assigned by the analysts stands at $163, which represents a return potential of 60.09 percent when compared to the closing price of the stock of $101.82 on Thursday, December 06. The lowest price target for the stock is $110 — slightly more than 8.03 percent from FANG’s current share price. The stock will probably climb 65.11 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $254-month high price target. This represents a whopping 149.46 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 34.82 on daily chart, which may remain a cause for comfort. If the price breaks below $94.98 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $103.79 mark may result into a pull-back move towards $105.76 level. The stock is currently hovering around the first support level of $98.4. Below this, the next support is placed in the zone of $94.98. Till the time, the FANG stock trades above this level, bulls have nothing to fear.

Shares of Diamondback Energy, Inc. (FANG) are trading at a P/E ratio of 15.1 times earnings reported for the past 12 months. The industry FANG operates in has an average P/E of 16.71. Its P/E ratio went as low as 16.44X and as high as 40.94 over the 5-year span. Further, it is sporting a 5.38 on the Price-to-Sales ratio. Compare this with the industry average P/S of 99.8. 81.6 percent is the gross profit margin for Diamondback Energy, Inc. and operating margin sits at 53 percent. Along with this, the net profit margin is 33.6 percent.

On 6th of December, Diamondback Energy, Inc. (NASDAQ:FANG) shares ended lower after a volatile session. The shares dropped -3.26 points or -3.1 percent at $101.82 with a heavy trade volume of 5.24 million shares. After opening the session at $102, the shares went as high as $102.3392 and as low as $96.9472, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $10.5 billion and now has 102.74 million shares outstanding. Diamondback Energy, Inc. (FANG) stock has lost -12.22 percent of market value in 21 trading days.

In last reported earnings results, FANG earned $1.67 per share, better than the $1.58, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $538M, better than the $516M analysts expected. Earnings are estimated to increase by 356.2 percent this year, 55.04 percent next year and continue to increase by 49.02 percent annually for the next 5 years. Investors will get their next glimpse of FANG’s Q4 earnings on February 12. Analysts are forecasting revenue to climb 59.4 percent to $636M in the next fiscal quarter, while earnings are seen soaring by nearly 18.59 percent to $1.85 per share. History has shown that shares in Diamondback Energy, Inc. have gone up on 16 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings.

FANG stock has a trailing 3-year beta of 0.73, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $7.28 a share in the trailing twelve months. The stock’s value has fallen -19.35 percent year to date (YTD) against a decline of -6.64 percent in 12 month’s time. The company’s shares still trade -27.67 percent away from its 1-year high of $140.78 and -1.63 percent down from 52-week low of $103.51. The average consensus rating on the company is 1.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.