Darling Ingredients (NYSE:DAR) Trading Down 5.4% – Here’s Why

Darling Ingredients Inc. (NYSE:DAR)’s stock price was down 5.4% during trading on Friday . The stock traded as low as $64.10 and last traded at $64.21. 1,638,536 shares were traded during mid-day trading, a decline of 37% from the average daily volume of 2,612,290 shares. The stock had previously closed at $67.84.

Trending Headlines about Darling Ingredients

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.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on DAR. Weiss Ratings upgraded Darling Ingredients from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, August 11th. Wall Street Zen raised Darling Ingredients from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 15th. Barclays upped their price target on Darling Ingredients from $62.00 to $65.00 and gave the stock an “equal weight” rating in a report on Monday, August 3rd. Zacks Research upgraded Darling Ingredients from a “hold” rating to a “strong-buy” rating in a research note on Wednesday. Finally, JPMorgan Chase & Co. boosted their price objective on Darling Ingredients from $78.00 to $79.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 12th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $69.00.

Darling Ingredients Trading Down 3.4%

The company has a 50-day moving average price of $59.86 and a 200-day moving average price of $58.29. The firm has a market capitalization of $10.35 billion, a price-to-earnings ratio of 17.67 and a beta of 1.02. 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 posted its earnings results on Thursday, July 30th. The company reported $2.41 earnings per share for the quarter, topping the consensus estimate of $1.40 by $1.01. The firm had revenue of $1.72 billion during the quarter, compared to analysts’ expectations of $1.71 billion. Darling Ingredients had a return on equity of 12.98% and a net margin of 9.13%.The firm’s revenue was up 16.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.08 earnings per share. As a group, research analysts forecast that Darling Ingredients Inc. will post 6.98 EPS for the current fiscal year.

Insider Activity at Darling Ingredients

In other news, EVP Patrick Mcnutt sold 8,000 shares of Darling Ingredients stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $67.09, for a total transaction of $536,720.00. Following the sale, the executive vice president owned 35,777 shares in the company, valued at approximately $2,400,278.93. The trade was a 18.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Nicholas James Kemphaus sold 1,591 shares of the business’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $63.05, for a total value of $100,312.55. Following the completion of the sale, the executive vice president directly owned 35,087 shares of the company’s stock, valued at $2,212,235.35. The trade was a 4.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 10,591 shares of company stock worth $704,303. Insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. SJS Investment Consulting Inc. lifted its stake in Darling Ingredients by 69.9% in the first quarter. SJS Investment Consulting Inc. now owns 423 shares of the company’s stock valued at $26,000 after buying an additional 174 shares during the last quarter. Allworth Financial LP grew its position in shares of Darling Ingredients by 227.2% during the fourth quarter. Allworth Financial LP now owns 733 shares of the company’s stock worth $26,000 after acquiring an additional 509 shares during the last quarter. Cedar Mountain Advisors LLC purchased a new position in shares of Darling Ingredients during the first quarter worth approximately $47,000. Litman Gregory Wealth Management LLC acquired a new position in shares of Darling Ingredients in the 4th quarter valued at $29,000. Finally, Danske Bank A S acquired a new position in shares of Darling Ingredients in the 3rd quarter valued at $25,000. Institutional investors and hedge funds own 94.44% of the company’s stock.

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.