What happened Shares of Diamondback Energy (NASDAQ: FANG) tumbled 13.8% in October, according to data provided by S&P Global Market Intelligence. Weighing on the oil stock was its production report and a barrage of analyst commentary. So what After shutting-in some of its production in the second quarter and stopping its well completion activities due to crashing crude oil prices, Diamondback Energy started ramping back up during the third quarter. As a result, the company reported last month that it produced an average of 287,300 barrels of oil equivalent per day (BOE/D) during the period. It expected to produce roughly that same amount during the fourth quarter (between 280,000 and 290,000 BOE/D), giving it a full-year average of 290,000 to 305,000 BOE/D. The company also said that it expects to maintain its fourth-quarter production rate next year while spending less than the $1.8 billion to $1.9 billion it anticipates investing this year. Image source: Getty Images. Analysts weren't totally in love with this outlook. As a result, Citigroup lowered its price target on Diamondback from $53 to $46 a share as the company's 2021 production forecast came in below the bank's expectations. KeyBank also reduced its price target on Diamondback, cutting it from $72 to $62 due to its below-consensus third-quarter output and higher-than-expected capital spending. Meanwhile, several of Diamondback Energy's peers announced merger agreements last month, fueling the belief that the wave would continue. Morgan Stanley thinks Diamondback could benefit from greater scale as a potential acquirer, with the bank suggesting that Cimarex Energy (NYSE: XEC) would be a good fit. But Diamondback Energy seemed to throw some cold water on that idea when it reported its third-quarter results in early November. CEO Travis Stice said on the accompanying conference call that "we do not need to increase our scale to further lower costs." Now what Analysts are starting to become less enamored with Diamondback Energy. Its production and outlook came in below their expectations, and now it seems unlikely to join the consolidation wave. If the company continues to disappoint investors, causing additional price target reductions and downgrades, its shares could underperform rivals even if oil prices recover. 10 stocks we like better than Diamondback EnergyWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Diamondback Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 20, 2020 Matthew DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source