Diamondback Energy Inc. (NASDAQ:FANG) has a beta of 2.55. The stock’s Relative Strength Index (RSI) is 70.89, with weekly volatility at 6.56% and ATR at 2.93. The FANG stock’s 52-week price range has touched low of $14.55 and a $96.92 high. Its shares traded higher over the last trading session, gaining 5.51% on 12/10/20. The shares fell to a low of $47.12 before closing at $49.94. Intraday shares traded counted 4.86 million, which was -24.39% lower than its 30-day average trading volume of 3.91M. FANG’s previous close was $47.33 while the outstanding shares total 157.83M.
Investors have identified the Oil & Gas E&P 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 $7.00 billion, 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 99.0 million on their books with 191.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. In terms of their assets, the company currently has 558.0 million total, with 1.23 billion as their total liabilities.
FANG were able to record 82.0 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by -29.0 million. In cash movements, the company had a total of 1.72 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 Q3 2020 quarter of the year, Diamondback Energy Inc. recorded a total of 720.0 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -35.42% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 40.97%.
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 1.98 billion trying to sell their products during the last quarter, with the result yielding a gross income of -1.26 billion. This allows shareholders to hold on to 157.83M with the recently reported earning now reading -7.05 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (0.62 cents a share).
Having a look at the company’s valuation, the company is expected to record 3.45 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.
Is the stock of FANG attractive?
In related news, CFO & Exec. VP – Bus Dev, Van’t Hof Matthew Kaes bought 1,800 shares of the company’s stock in a transaction that recorded on Jun 19. The purchase was performed at an average price of 46.92, for a total value of 84,456. As the purchase deal closes, the CFO & Exec. VP – Bus Dev, Van’t Hof Matthew Kaes now bought 4,750 shares of the company’s stock, valued at 81,839. Also, Chief Executive Officer, Stice Travis D. bought 17,146 shares of the company’s stock in a deal that was recorded on Mar 10. The shares were cost at an average price of 28.40 per share, with a total market value of 487,001. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
26 out of 34 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Diamondback Energy Inc.. 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 $53.26.