Diamondback Energy, Inc. (NASDAQ:FANG) Raises Dividend to $1.18 Per Share

Diamondback Energy, Inc. (NASDAQ:FANG) announced a quarterly dividend on Monday, November 2nd. Investors of record on Thursday, November 12th will be given a dividend of $1.18 per share by the oil and natural gas company on Thursday, November 19th. This represents a $4.72 annualized dividend and a yield of 2.4%. The ex-dividend date is Thursday, November 12th. This is a 7.3% increase from Diamondback Energy’s previous quarterly dividend of $1.10.

Diamondback Energy has raised its dividend by an average of 0.2% annually over the last three years and has raised its dividend annually for the last 7 consecutive years. Diamondback Energy has a payout ratio of 33.2% indicating that its dividend is sufficiently covered by earnings. Analysts expect Diamondback Energy to earn $20.10 per share next year, which means the company should continue to be able to cover its $4.40 annual dividend with an expected future payout ratio of 21.9%.

Diamondback Energy Stock Down 5.8%

Shares of Diamondback Energy stock opened at $199.74 on Tuesday. The stock has a market capitalization of $55.93 billion, a P/E ratio of 38.94 and a beta of 0.55. The company has a quick ratio of 0.45, a current ratio of 0.47 and a debt-to-equity ratio of 0.25. The stock has a 50 day moving average price of $197.16 and a two-hundred day moving average price of $189.30. Diamondback Energy has a 12-month low of $137.03 and a 12-month high of $216.90.

Diamondback Energy (NASDAQ:FANG) last announced its quarterly earnings results on Monday, November 2nd. The oil and natural gas company reported $5.86 EPS for the quarter, beating the consensus estimate of $5.72 by $0.14. Diamondback Energy had a return on equity of 10.10% and a net margin of 8.58%. The company had revenue of $5.43 billion for the quarter, compared to the consensus estimate of $4.60 billion. During the same quarter last year, the company posted $3.08 earnings per share. The company’s revenue for the quarter was up 38.4% compared to the same quarter last year. Equities analysts expect that Diamondback Energy will post 21.49 earnings per share for the current year.

Wall Street Analyst Weigh In

FANG has been the subject of several recent analyst reports. Scotiabank assumed coverage on shares of Diamondback Energy in a report on Wednesday, October 14th. They set a “sector outperform” rating and a $250.00 price objective for the company. BMO Capital Markets lifted their target price on shares of Diamondback Energy from $215.00 to $224.00 and gave the stock an “outperform” rating in a report on Friday, October 2nd. Susquehanna boosted their target price on shares of Diamondback Energy from $255.00 to $265.00 in a research report on Wednesday, August 5th. Raymond James Financial restated a “strong-buy” rating on shares of Diamondback Energy in a report on Thursday, September 17th. Finally, Citigroup lowered their price target on Diamondback Energy from $221.00 to $220.00 and set a “buy” rating on the stock in a research report on Monday, August 10th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-four have given a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Diamondback Energy presently has an average rating of “Moderate Buy” and a consensus target price of $228.43.

Diamondback Energy Company Profile

Diamondback Energy, Inc is an independent oil and natural gas company engaged in the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves. The company’s operations are concentrated in the Permian Basin of West Texas and southeastern New Mexico, particularly the Midland and Delaware Basins.

Diamondback produces crude oil, natural gas and natural gas liquids from horizontal wells and related infrastructure. Its activities include drilling and completing wells, operating gathering and processing assets, and managing midstream services that support production.