Darling Ingredients (NYSE:DAR) Shares Down 4.8% - Here's Why

Key Points

• Darling Ingredients' shares fell by 4.8% to $30.56, with trading volume decreasing significantly to 454,227 shares compared to an average of 2,377,920 shares.
• The company reported earnings per share (EPS) of $0.09 for the last quarter, missing the consensus estimate by $0.03, and had a revenue of $1.48 billion, slightly below analysts' expectations.
• Analysts have varied opinions on the stock, with one strong buy, five buy ratings, and three hold ratings, reflecting a consensus price target of $43.57.

Darling Ingredients Inc. (NYSE:DAR - Get Free Report) traded down 4.8% during mid-day trading on Monday . The stock traded as low as $30.33 and last traded at $30.56. 454,227 shares traded hands during mid-day trading, a decline of 81% from the average session volume of 2,377,920 shares. The stock had previously closed at $32.11.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on DAR. Baird R W cut Darling Ingredients from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 25th. Piper Sandler lowered their price objective on Darling Ingredients from $54.00 to $50.00 and set an "overweight" rating on the stock in a report on Monday, July 28th. JPMorgan Chase & Co. assumed coverage on Darling Ingredients in a research note on Wednesday, August 20th. They set an "overweight" rating and a $43.00 price target on the stock. Jefferies Financial Group boosted their price target on Darling Ingredients from $45.00 to $46.00 and gave the stock a "buy" rating in a research note on Monday, July 7th. Finally, Tudor Pickering raised Darling Ingredients from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, June 11th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $43.57.

Darling Ingredients Price Performance

The company's 50 day moving average price is $32.51 and its 200-day moving average price is $32.96. The company has a market capitalization of $4.84 billion, a PE ratio of 46.37 and a beta of 1.16. The company has a current ratio of 1.50, a quick ratio of 0.89 and a debt-to-equity ratio of 0.84.

Darling Ingredients (NYSE:DAR - Get Free Report) last announced its quarterly earnings data on Thursday, July 24th. The company reported $0.09 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.12 by ($0.03). Darling Ingredients had a net margin of 1.85% and a return on equity of 2.35%. The company had revenue of $1.48 billion for the quarter, compared to analysts' expectations of $1.49 billion. During the same period in the prior year, the firm earned $0.49 earnings per share. The firm's quarterly revenue was up 1.8% on a year-over-year basis. On average, sell-side analysts forecast that Darling Ingredients Inc. will post 2.81 earnings per share for the current fiscal year.

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 shares were sold at an average price of $30.92, for a total transaction of $1,082,200.00. Following the completion of the sale, the chief executive officer directly owned 781,437 shares of the company's stock, valued at approximately $24,162,032.04. This represents a 4.29% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 2.07% of the company's stock.

Institutional Trading of Darling Ingredients

Institutional investors have recently added to or reduced their stakes in the business. Peregrine Capital Management LLC boosted its position in Darling Ingredients by 16.5% during the 1st quarter. Peregrine Capital Management LLC now owns 218,806 shares of the company's stock worth $6,835,000 after purchasing an additional 30,952 shares during the period. Sumitomo Mitsui Trust Group Inc. boosted its position in Darling Ingredients by 19.3% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 30,490 shares of the company's stock valued at $953,000 after buying an additional 4,933 shares during the last quarter. Oppenheimer Asset Management Inc. boosted its position in Darling Ingredients by 14.1% in the 1st quarter. Oppenheimer Asset Management Inc. now owns 154,315 shares of the company's stock valued at $4,821,000 after buying an additional 19,113 shares during the last quarter. GAMMA Investing LLC boosted its position in Darling Ingredients by 6,187.6% in the 1st quarter. GAMMA Investing LLC now owns 64,448 shares of the company's stock valued at $2,063,000 after buying an additional 63,423 shares during the last quarter. Finally, Cornerstone Investment Partners LLC purchased a new position in Darling Ingredients in the 1st quarter valued at about $255,000. 94.44% of the stock is owned by hedge funds and other institutional investors.

About Darling Ingredients

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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