Diamondback Energy: UBS maintains Buy rating, raises PT to $171.

Diamondback Energy: UBS maintains Buy rating, raises PT to $171.

UBS Group AG has maintained its "Buy" rating on Diamondback Energy, Inc. (NASDAQ: FANG) while raising its price target to $171. This move comes after the oil and natural gas company reported its latest earnings, which included a 48.1% year-over-year increase in quarterly revenue to $3.68 billion. Despite missing analysts' expectations for earnings per share (EPS) of $2.67, the company's strong revenue growth and a robust dividend policy have bolstered investor confidence.

Diamondback Energy's quarterly dividend of $1.00 per share translates to an annual yield of 2.8% and a payout ratio of 28.43%. This indicates a stable dividend policy that has attracted institutional investors. According to the latest 13F filings, institutional investors and hedge funds collectively own 90.01% of the company's stock.

UBS's decision to maintain a "Buy" rating and increase the price target reflects the analyst's confidence in Diamondback Energy's growth prospects and the company's ability to navigate the volatile energy markets. The firm's focus on the development of unconventional, onshore oil and natural gas reserves in the Permian Basin, particularly the Spraberry and Wolfcamp formations, positions it well for future growth.

The company's recent stock performance has been mixed, with the stock opening at $140.77 on Friday and trading within a range of $114.00 to $200.47 over the past year. The stock's debt-to-equity ratio of 0.35 and a market capitalization of $40.75 billion also indicate a relatively healthy financial position.

Institutional investors have been active in Diamondback Energy's stock, with several funds increasing their holdings during the recent quarter. For instance, Price T Rowe Associates Inc. MD increased its holdings by 11.3% during the 4th quarter, while Boston Partners increased its stake by 4.8% during the 1st quarter. These moves underscore the growing interest in the company's stock among institutional investors.

Diamondback Energy's strong revenue growth, stable dividend policy, and robust financial position have contributed to UBS's positive outlook on the stock. The analyst's decision to maintain a "Buy" rating and raise the price target reflects the firm's confidence in the company's ability to deliver shareholder value.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-lord-abbett-co-llc-has-4618-million-stake-in-diamondback-energy-inc-nasdaqfang-2025-08-15/
[2] https://www.marketbeat.com/instant-alerts/filing-diamondback-energy-inc-nasdaqfang-stock-holdings-cut-by-public-sector-pension-investment-board-2025-08-14/