Darling Ingredients (NYSE:DAR) Posts Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• Darling Ingredients reported quarterly earnings of $0.12 EPS, missing the consensus estimate of $0.13 by $0.01, despite revenue increasing by 10.0% year-over-year to $1.56 billion.
• The company's shares surged 9.7% during trading hours following the earnings release, with stock reaching $34.15.
• Institutional investors hold a significant majority of the stock, with approximately 94.44% ownership and several hedge funds making notable investments in recent quarters.

Darling Ingredients (NYSE:DAR - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.12 EPS for the quarter, missing the consensus estimate of $0.13 by ($0.01), Zacks reports. Darling Ingredients had a net margin of 1.85% and a return on equity of 2.35%. The business had revenue of $1.56 billion during the quarter, compared to analysts' expectations of $1.50 billion. During the same quarter in the previous year, the firm earned $0.11 earnings per share. Darling Ingredients's revenue was up 10.0% on a year-over-year basis.

Darling Ingredients Trading Up 9.7%

Shares of NYSE DAR traded up $3.03 during trading hours on Thursday, reaching $34.15. The stock had a trading volume of 2,421,235 shares, compared to its average volume of 2,397,519. The company has a current ratio of 1.50, a quick ratio of 0.89 and a debt-to-equity ratio of 0.84. The firm has a market cap of $5.40 billion, a price-to-earnings ratio of 51.73, a P/E/G ratio of 1.76 and a beta of 1.22. The business's fifty day moving average price is $31.92 and its two-hundred day moving average price is $32.99. Darling Ingredients has a 52-week low of $26.00 and a 52-week high of $43.49.

Insiders Place Their Bets

In related news, CEO Randall C. Stuewe sold 35,000 shares of the company's stock in a transaction on Monday, August 18th. The stock was sold at an average price of $30.92, for a total value of $1,082,200.00. Following the transaction, the chief executive officer directly owned 781,437 shares of the company's stock, valued at $24,162,032.04. This represents a 4.29% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 2.62% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Darling Ingredients

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC grew its position in Darling Ingredients by 681.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,016 shares of the company's stock worth $39,000 after purchasing an additional 886 shares during the period. Canada Pension Plan Investment Board acquired a new stake in Darling Ingredients during the 2nd quarter worth about $186,000. Focus Partners Wealth acquired a new stake in Darling Ingredients during the 1st quarter worth about $205,000. Caxton Associates LLP acquired a new stake in Darling Ingredients during the 2nd quarter worth about $210,000. Finally, Meiji Yasuda Asset Management Co Ltd. acquired a new stake in Darling Ingredients during the 2nd quarter worth about $241,000. 94.44% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

DAR has been the topic of several analyst reports. Jefferies Financial Group set a $42.00 price objective on Darling Ingredients in a research note on Wednesday, October 8th. Zacks Research cut Darling Ingredients from a "hold" rating to a "strong sell" rating in a research note on Thursday, October 16th. JPMorgan Chase & Co. began coverage on Darling Ingredients in a research note on Wednesday, August 20th. They set an "overweight" rating and a $43.00 price objective on the stock. Baird R W lowered Darling Ingredients from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 25th. Finally, Bank of America initiated coverage on Darling Ingredients in a research report on Wednesday, October 8th. They set a "buy" rating and a $45.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $43.25.

Darling Ingredients Company Profile

Darling Ingredients Inc develops, produces, and sells natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. The company operates through three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients. It offers ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy, and fertilizer industries.

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