KeyCorp Projects Diamondback Energy Earnings at $14.36 for FY2027

Equities researchers at KeyCorp have forecasted that Diamondback Energy, Inc. (NASDAQ: FANG) will achieve earnings per share of $14.36 for the fiscal year 2027. This projection was detailed in a research report released on October 14, 2023, with KeyCorp analyst T. Rezvan maintaining an “Overweight” rating for the stock and setting a price target of $176.00.

In comparison, the consensus estimate for Diamondback Energy’s earnings for the current fiscal year stands at $15.49 per share. The company last reported its earnings results on August 4, 2023. In that quarter, Diamondback Energy posted earnings of $2.67 per share, which fell short of the consensus estimate of $2.72 by $0.05. The company generated $3.68 billion in revenue for the quarter, surpassing the expected $3.35 billion.

Diamondback Energy’s year-over-year revenue growth was notable, with a 48.1% increase compared to the same quarter last year. For context, the company recorded earnings of $4.52 per share in the same quarter last year.

Current Stock Performance and Institutional Holdings

As of Thursday, Diamondback Energy’s stock opened at $139.09. The company’s 50-day simple moving average is $142.18, while the 200-day simple moving average stands at $140.51. Diamondback Energy boasts a market capitalization of $40.26 billion, a price-to-earnings ratio of 9.89, and a beta of 1.04. Over the past year, the stock has fluctuated between a low of $114.00 and a high of $186.74. Financial metrics also reveal a quick ratio of 0.52, a current ratio of 0.55, and a debt-to-equity ratio of 0.35.

Recent changes in institutional trading reflect growing interest in Diamondback Energy. Noteworthy transactions include BankPlus Trust Department acquiring a new position valued at $27,000 in the first quarter, and Pinnacle Bancorp Inc. increasing its holdings by 95.7%, now owning 180 shares valued at $29,000. Collectively, institutional investors control approximately 90.01% of the stock.

Recent Transactions and Dividend Announcements

In related news, Chairman Travis D. Stice sold 20,400 shares of Diamondback Energy on August 7, 2023, at an average price of $142.80, totaling $2,913,120.00. Following this transaction, Stice holds 102,145 shares, valued at $14,586,306, marking a 16.65% decrease in his holdings. This transaction was reported in a filing with the U.S. Securities and Exchange Commission (SEC).

Additionally, Diamondback Energy declared a quarterly dividend of $1.00 per share, which was paid on August 21, 2023, to investors recorded on August 14, 2023. This dividend results in an annualized payout of $4.00 and a yield of 2.9%, with a payout ratio of 28.43%.

About Diamondback Energy

Diamondback Energy, Inc. is an independent oil and natural gas entity focused on acquiring, developing, exploring, and exploiting unconventional, onshore oil and natural gas reserves primarily in the Permian Basin of West Texas. The company emphasizes the development of key formations including Spraberry, Wolfcamp, and Bone Spring, situated in both Texas and New Mexico.

In summary, KeyCorp’s earnings forecast for Diamondback Energy reflects both the company’s robust operational performance and the strategic interest from institutional investors, indicating a positive outlook for the oil and gas sector in the coming years.