Shares of Diamondback Energy, Inc. (NASDAQ:FANG) recorded 0.76% gain during trading session on March 14th, 2019. The script traded as low as $103.24 and last traded at $104.21. 2.54 million shares changed exchanged hands during trading, a drop of -17.8% from the 30-day average session volume of 2.16M shares. The firm had previously closed at $103.42. The company has $168.27M outstanding shares, a price-to-earnings ratio of 13.11, price-to-earnings-growth ratio of 8.06and a beta of 0.82. The company has a RSI of 54.28, ATR of 3.22 and a volatility of 2.66% this week. FANG has a 52 week low price of $85.19 and a 52 week high price of $140.78.
Investors have identified the tech company Diamondback Energy, Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 17.54B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Diamondback Energy, Inc. (FANG) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For FANG, the company has in raw cash 214.52 million on their books with 1.02 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 0 total, with 466.9 million as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
FANG were able to record 107.07 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 102.07 million. In cash movements, the company had a total of 1.56 billion as operating cash flow.
Potential earnings growth for Diamondback Energy, Inc. (FANG)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Diamondback Energy, Inc. recorded a total of 631.76 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.37% coming in sequential stages and their sales for the third quarter increasing by 0.15%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 436.77 million trying to sell their products during the last quarter, with the result yielding a gross income of 194.99 million. This allows shareholders to hold on to 168.27M with the revenue now reading 2600 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (1.69 cents a share).
Is the stock of FANG attractive?
Having a look at the company’s valuation, the company is expected to record 12.47 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on FANG sounds very interesting.
In related news, CFO & Exec. VP – Bus Dev Van’t Hof Matthew Kaes sold 1,700 shares of the company’s stock in a transaction that recorded on March 13th, 2019. The sale was performed at an average price of 101.82, for a total value of 173,094. As the sale deal closes, the President and COO Van’t Hof Matthew Kaes now bought 5,313 shares of the company’s stock, valued at 505,352. Also, Sr. VP – Strategy & Corp Dev Van’t Hof Matthew Kaes sold 1,000 shares of the company’s stock in a deal that was recorded on December 20th, 2019. The shares were sold at an average price of 89.91 per share, with a total market value of 5,757. Following this completion of acquisition, the Exec. VP Exploration & Bus Dev now holds 5,000 shares of the company’s stock, valued at 638,183. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.
15 out of 33 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Diamondback Energy, Inc. stock. 0 analysts has assigned a Sell rating on the FANG stock. The 12-month mean consensus price target for the company’s shares has been set at $150.30.