Darling Ingredients (NYSE:DAR) Reaches New 52-Week High Following Analyst Upgrade

Darling Ingredients Inc. (NYSE:DAR) shares reached a new 52-week high on Thursday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The company traded as high as $68.77 and last traded at $66.9380, with a volume of 2410673 shares traded. The stock had previously closed at $68.34.

Several other brokerages have also commented on DAR. Scotiabank increased their target price on Darling Ingredients from $61.00 to $70.00 and gave the company a “sector outperform” rating in a report on Wednesday, April 22nd. Jefferies Financial Group increased their target price on shares of Darling Ingredients from $73.00 to $75.00 and gave the stock a “buy” rating in a research note on Monday, May 4th. Wall Street Zen raised shares of Darling Ingredients from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 15th. TD Cowen upped their target price on shares of Darling Ingredients from $70.00 to $80.00 and gave the company a “buy” rating in a report on Monday, July 27th. Finally, Barclays upped their target price on shares of Darling Ingredients from $62.00 to $65.00 and gave the stock an “equal weight” rating in a research report on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $69.00.

Insider Buying and Selling

In other Darling Ingredients news, CAO Joseph Manzi sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $67.27, for a total transaction of $67,270.00. Following the sale, the chief accounting officer directly owned 18,969 shares of the company’s stock, valued at $1,276,044.63. The trade was a 5.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Charles L. Adair acquired 1,000 shares of the business’s stock in a transaction dated Friday, July 31st. The stock was purchased at an average cost of $60.97 per share, for a total transaction of $60,970.00. Following the transaction, the director owned 51,690 shares in the company, valued at approximately $3,151,539.30. The trade was a 1.97% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders sold a total of 10,591 shares of company stock valued at $704,303 over the last three months. 1.90% of the stock is owned by corporate insiders.

More Darling Ingredients News

Here are the key news stories impacting Darling Ingredients this week:

• Positive Sentiment: Strong second-quarter performance: Net income reached $387.3 million, while combined adjusted EBITDA rose to $741.7 million. Diamond Green Diesel (DGD) was a major contributor, generating approximately $389.2 million of Darling’s share of adjusted EBITDA. Darling Ingredients second-quarter earnings release
• Positive Sentiment: Capital-return and tax-credit support: The board expanded its share-repurchase authorization to $1 billion, and Darling agreed to sell approximately $150 million of production tax credits, potentially supporting cash flow and shareholder returns. Darling Ingredients press release
• Positive Sentiment: Favorable analyst momentum: Zacks Research upgraded DAR from “hold” to “strong-buy,” while recent broker targets have generally ranged from $70 to $79. Renewable-fuel policy support and tight renewable identification number (RIN) markets are also viewed as potential DGD tailwinds. Zacks Darling Ingredients momentum analysis
• Neutral Sentiment: Rally appears extended: Shares had advanced 12.8% over the preceding week and were approaching their 52-week high, increasing the likelihood of profit-taking and a technical reversal after strong news was already reflected in the valuation.
• Negative Sentiment: Execution risks remain: Analysts cited rising costs, flat feedstock throughput and capacity constraints. Future DGD profitability also depends on renewable-fuel policy, RIN prices and other market inputs. Zacks Darling Ingredients risk analysis
• Negative Sentiment: Mixed trading signals: Company insiders reported more selling than buying over the past six months, while institutional activity was broadly balanced but included sizable reductions by several funds. These signals may have added to short-term selling pressure.

Hedge Funds Weigh In On Darling Ingredients

Several institutional investors have recently made changes to their positions in the stock. Nykredit A S purchased a new stake in Darling Ingredients during the second quarter valued at about $254,000. Headlands Technologies LLC acquired a new position in Darling Ingredients in the second quarter valued at about $247,000. Quantitative Investment Management LLC acquired a new position in Darling Ingredients in the 2nd quarter worth $1,119,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Darling Ingredients by 1.2% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 419,696 shares of the company’s stock valued at $22,924,000 after buying an additional 4,820 shares in the last quarter. Finally, Toth Financial Advisory Corp lifted its holdings in Darling Ingredients by 12.6% during the 2nd quarter. Toth Financial Advisory Corp now owns 23,765 shares of the company’s stock worth $1,298,000 after purchasing an additional 2,650 shares during the last quarter. 94.44% of the stock is owned by institutional investors.

Darling Ingredients Stock Performance

The stock has a market cap of $10.35 billion, a price-to-earnings ratio of 17.67 and a beta of 1.02. The stock has a fifty day simple moving average of $59.86 and a two-hundred day simple moving average of $58.29. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.03 and a current ratio of 1.56.

Darling Ingredients (NYSE:DAR) last issued its quarterly earnings data on Thursday, July 30th. The company reported $2.41 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.40 by $1.01. The business had revenue of $1.72 billion during the quarter, compared to the consensus estimate of $1.71 billion. Darling Ingredients had a net margin of 9.13% and a return on equity of 12.98%. The firm’s quarterly revenue was up 16.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.08 EPS. Analysts expect that Darling Ingredients Inc. will post 6.98 EPS for the current fiscal year.

About Darling Ingredients

Darling Ingredients Inc (NYSE: DAR) is a global leader in converting edible and inedible bio-nutrient streams into sustainable food, feed ingredients, renewable fuels and specialty products. Founded in 1882 and headquartered in Irving, Texas, the company builds on more than a century of experience in animal rendering and by-product recycling. Over time, Darling has expanded its capabilities beyond traditional rendering to include advanced processing technologies that support a circular economy and reduce waste from food and agricultural industries.

The company’s core operations revolve around four primary segments: Feed Ingredients & Services, Food & Nutrition, Fuel Ingredients & Services, and Specialty Ingredients.