10 Large-Cap Stocks with Insider Buying in 2025

5. Diamondback Energy Inc. (NASDAQ:FANG)

Number of Hedge Fund Holders: 54

Diamondback Energy Inc. (NASDAQ:FANG) is an independent oil and natural gas company specializing in the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin of West Texas and New Mexico. The company focuses on the development of the Spraberry and Wolfcamp formations in the Midland Basin, as well as the Wolfcamp and Bone Spring formations in the Delaware Basin. FANG also owns and operates midstream infrastructure assets in the Midland and Delaware Basins, providing services under long-term, fixed-fee contracts.

Diamondback Energy Inc. (NASDAQ:FANG) demonstrated strong capital efficiency in their operations, with the ability to produce the same free cash flow at $67 per barrel compared to $76 last year, achieved through improved efficiency and accretive deals. The company is executing a significant DUC (Drilled but Uncompleted wells) drawdown plan, which contributes to approximately $200 million in capital savings for the year. On the M&A front, the company views the Double Eagle transaction as potentially the last meaningful opportunity in the core of the Midland Basin, signaling a shift towards focusing on share repurchases and reducing enterprise value.

The company’s financial position remains strong, generating approximately $20 per share of free cash flow at $70 oil in 2025, representing a 12.5-13% yield at current prices. Regarding asset sales, Diamondback Energy Inc. (NASDAQ:FANG) has committed to $1.5 billion in noncore asset sales, primarily focusing on equity method investments and midstream assets, without selling operated acreage. The company is also actively pursuing innovative opportunities in power generation, working on potential partnerships with hyperscalers for data centers that could utilize its gas while providing power solutions for their operations. The potential upside arising from such opportunities is reinforced by significant insider buying in the last six months.