Diamondback Energy Stock Buy Hold or Sell Recommendation
| FANG Stock | USD 205.35 0.99 0.48% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Diamondback Energy is 'Strong Buy'. Macroaxis provides Diamondback Energy buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding FANG positions. The advice algorithm takes into account all of Diamondback Energy's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Diamondback Energy's buy or sell advice are summarized below:
Real Value 203.49 | Target Price 180.5 | Hype Value 206.96 | Market Value 205.35 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Diamondback Energy given historical horizon and risk tolerance towards Diamondback Energy. When Macroaxis issues a 'buy' or 'sell' recommendation for Diamondback Energy, the advice is generated through an automated system that utilizes algorithms and statistical models.
Diamondback |
Execute Diamondback Energy Buy or Sell Advice
The Diamondback recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Diamondback Energy. Macroaxis does not own or have any residual interests in Diamondback Energy or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Diamondback Energy's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Buy
Market Performance | Strong | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Diamondback Energy Trading Alerts and Improvement Suggestions
| The company currently holds 6.8 B in liabilities with Debt to Equity (D/E) ratio of 0.38, which is about average as compared to similar companies. Diamondback Energy has a current ratio of 0.6, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Diamondback Energy until it has trouble settling it off, either with new capital or with free cash flow. So, Diamondback Energy's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Diamondback Energy sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Diamondback to invest in growth at high rates of return. When we think about Diamondback Energy's use of debt, we should always consider it together with cash and equity. | |
| Diamondback Energy has a strong financial position based on the latest SEC filings | |
| Over 94.0% of Diamondback Energy shares are owned by institutional investors | |
| On 12th of March 2024 Diamondback Energy paid $ 3.08 per share dividend to its current shareholders | |
| Latest headline from marketbeat.com: Quad-Cities Investment Group, LLC Top Holdings and 13F Report |
Diamondback Energy Returns Distribution Density
The distribution of Diamondback Energy's historical returns is an attempt to chart the uncertainty of Diamondback Energy's future price movements. The chart of the probability distribution of Diamondback Energy daily returns describes the distribution of returns around its average expected value. We use Diamondback Energy price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Diamondback Energy returns is essential to provide solid investment advice for Diamondback Energy.
| Mean Return | 0.50 | Value At Risk | -1.68 | Potential Upside | 2.04 | Standard Deviation | 1.61 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Diamondback Energy historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Diamondback Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Diamondback Energy is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Diamondback Energy backward and forwards among themselves. Diamondback Energy's institutional investor refers to the entity that pools money to purchase Diamondback Energy's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Nuveen Asset Management, Llc | 2023-12-31 | 3.1 M | Massachusetts Financial Services Company | 2023-12-31 | 2.9 M | Bank Of New York Mellon Corp | 2023-12-31 | 2.5 M | Dimensional Fund Advisors, Inc. | 2023-12-31 | 2.2 M | Pacer Advisors, Inc. | 2023-12-31 | 2 M | Northern Trust Corp | 2023-12-31 | 2 M | Diamond Hill Capital Management Inc | 2023-12-31 | 1.6 M | Yacktman Asset Management Co | 2023-12-31 | 1.5 M | T. Rowe Price Investment Management,inc. | 2023-12-31 | 1.5 M | Vanguard Group Inc | 2023-12-31 | 21.9 M | Blackrock Inc | 2023-12-31 | 14.7 M |
Diamondback Energy Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (10M) | (101M) | 320M | 312M | 358.8M | 376.7M | |
| Change In Cash | (92M) | (20M) | 564M | (508M) | 421M | 442.1M | |
| Free Cash Flow | (968M) | 74M | 1.6B | 2.8B | 1.2B | 1.3B | |
| Other Non Cash Items | 16M | 37M | (300M) | (157M) | 110M | 115.5M | |
| Capital Expenditures | 3.7B | 2.0B | 2.3B | 3.5B | 4.7B | 4.9B | |
| Net Income | 315M | (4.7B) | 2.3B | 4.6B | 3.3B | 3.5B | |
| End Period Cash Flow | 123M | 108M | 672M | 164M | 585M | 614.3M | |
| Dividends Paid | 112M | 236M | 312M | 1.6B | (1.4B) | (1.4B) | |
| Investments | (819M) | (168M) | (105M) | (3.3B) | (3.2B) | (3.1B) | |
| Change Receivables | (187M) | 217M | (196M) | (47M) | (42.3M) | (44.4M) | |
| Net Borrowings | 2.4B | 397M | (680M) | (320M) | (368M) | (349.6M) | |
| Depreciation | 2.5B | 7.7B | 1.3B | 1.3B | 1.7B | 2.8B | |
| Change To Netincome | 1.1B | 5.1B | 357M | 1.5B | 1.7B | 932.8M |
Diamondback Energy Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Diamondback Energy or Oil, Gas & Consumable Fuels sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Diamondback Energy's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Diamondback stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | 0.44 | |
β | Beta against NYSE Composite | 0.88 | |
σ | Overall volatility | 1.61 | |
Ir | Information ratio | 0.27 |
Diamondback Energy Volatility Alert
Diamondback Energy has relatively low volatility with skewness of 2.76 and kurtosis of 13.93. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Diamondback Energy's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Diamondback Energy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Diamondback Energy Implied Volatility
Diamondback Energy's implied volatility exposes the market's sentiment of Diamondback Energy stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Diamondback Energy's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Diamondback Energy stock will not fluctuate a lot when Diamondback Energy's options are near their expiration.
Diamondback Energy Fundamentals Vs Peers
Comparing Diamondback Energy's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Diamondback Energy's direct or indirect competition across all of the common fundamentals between Diamondback Energy and the related equities. This way, we can detect undervalued stocks with similar characteristics as Diamondback Energy or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Diamondback Energy's fundamental indicators could also be used in its relative valuation, which is a method of valuing Diamondback Energy by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Diamondback Energy to competition |
| Fundamentals | Diamondback Energy | Peer Average |
| Return On Equity | 0.2 | -0.31 |
| Return On Asset | 0.0983 | -0.14 |
| Profit Margin | 0.39 % | (1.27) % |
| Operating Margin | 0.59 % | (5.51) % |
| Current Valuation | 43.67 B | 16.62 B |
| Shares Outstanding | 178.34 M | 571.82 M |
| Shares Owned By Insiders | 0.59 % | 10.09 % |
| Shares Owned By Institutions | 93.65 % | 39.21 % |
| Number Of Shares Shorted | 5.16 M | 4.71 M |
| Price To Earning | 5.96 X | 28.72 X |
| Price To Book | 2.21 X | 9.51 X |
| Price To Sales | 4.62 X | 11.42 X |
| Revenue | 8.34 B | 9.43 B |
| Gross Profit | 8.17 B | 27.38 B |
| EBITDA | 6.39 B | 3.9 B |
| Net Income | 3.34 B | 570.98 M |
| Cash And Equivalents | 27 M | 2.7 B |
| Cash Per Share | 0.15 X | 5.01 X |
| Total Debt | 6.8 B | 5.32 B |
| Debt To Equity | 0.38 % | 48.70 % |
| Current Ratio | 0.61 X | 2.16 X |
| Book Value Per Share | 93.02 X | 1.93 K |
| Cash Flow From Operations | 5.92 B | 971.22 M |
| Short Ratio | 3.54 X | 4.00 X |
| Earnings Per Share | 17.33 X | 3.12 X |
| Price To Earnings To Growth | 1.20 X | 4.89 X |
| Target Price | 208.24 | |
| Number Of Employees | 1.02 K | 18.84 K |
| Beta | 1.92 | -0.15 |
| Market Capitalization | 36.62 B | 19.03 B |
| Total Asset | 29 B | 29.47 B |
| Retained Earnings | 2.49 B | 9.33 B |
| Working Capital | (487 M) | 1.48 B |
Note: Disposition of 11469 shares by Daniel Wesson of Diamondback Energy at 182.52 subject to Rule 16b-3 [view details]
Diamondback Energy Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Diamondback . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 0.0232 | |||
| Daily Balance Of Power | (0.20) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 207.05 | |||
| Day Typical Price | 206.48 | |||
| Market Facilitation Index | 4.87 | |||
| Price Action Indicator | (2.19) | |||
| Period Momentum Indicator | (0.99) |
About Diamondback Energy Buy or Sell Advice
When is the right time to buy or sell Diamondback Energy? Buying financial instruments such as Diamondback Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 6.7B | 6.2B | 6.8B | 7.1B | Total Assets | 22.9B | 26.2B | 29.0B | 30.5B |
Use Investing Ideas to Build Portfolios
In addition to having Diamondback Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Chemicals Makers
Companies developing chemicals for crops, soil as well as human, and animals. The Chemicals Makers theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Chemicals Makers Theme or any other thematic opportunities.
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Check out Diamondback Energy Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in Diamondback Stock please use our How to Invest in Diamondback Energy guide.You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Complementary Tools for Diamondback Stock analysis
When running Diamondback Energy's price analysis, check to measure Diamondback Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Diamondback Energy is operating at the current time. Most of Diamondback Energy's value examination focuses on studying past and present price action to predict the probability of Diamondback Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Diamondback Energy's price. Additionally, you may evaluate how the addition of Diamondback Energy to your portfolios can decrease your overall portfolio volatility.
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Is Diamondback Energy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Diamondback Energy. If investors know Diamondback will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Diamondback Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.05) | Dividend Share 8.12 | Earnings Share 17.33 | Revenue Per Share 44.217 | Quarterly Revenue Growth 0.113 |
The market value of Diamondback Energy is measured differently than its book value, which is the value of Diamondback that is recorded on the company's balance sheet. Investors also form their own opinion of Diamondback Energy's value that differs from its market value or its book value, called intrinsic value, which is Diamondback Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Diamondback Energy's market value can be influenced by many factors that don't directly affect Diamondback Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Diamondback Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Diamondback Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Diamondback Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.