Darling Ingredients Sees Unusually High Options Volume (NYSE:DAR)

Key Points

• Darling Ingredients saw an unusual spike in options trading, with investors purchasing 8,879 call options, a 166% increase compared to the average daily volume.
• Despite the rise in options activity, the company’s stock fell 3.6% to $33.94, with a market cap of $5.37 billion and a price-to-earnings ratio of 31.72.
• In its latest earnings report, Darling Ingredients posted $0.09 EPS, missing estimates of $0.12 by $0.03, while revenue grew by 1.8% year-over-year.
• The stock ratings from analysts show a consensus of "Moderate Buy", with a target price of $45.57, despite some reductions in price targets from various brokerages.

Darling Ingredients Inc. (NYSE:DAR - Get Free Report) was the recipient of some unusual options trading activity on Friday. Stock investors purchased 8,879 call options on the company. This represents an increase of approximately 166% compared to the average daily volume of 3,336 call options.

Institutional Trading of Darling Ingredients

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Xponance Inc. grew its stake in Darling Ingredients by 2.0% during the first quarter. Xponance Inc. now owns 20,183 shares of the company's stock worth $631,000 after buying an additional 393 shares in the last quarter. State of Michigan Retirement System increased its holdings in Darling Ingredients by 1.1% in the 1st quarter. State of Michigan Retirement System now owns 38,074 shares of the company's stock worth $1,189,000 after purchasing an additional 400 shares in the last quarter. Treasurer of the State of North Carolina boosted its position in Darling Ingredients by 0.6% during the 4th quarter. Treasurer of the State of North Carolina now owns 69,709 shares of the company's stock worth $2,348,000 after buying an additional 440 shares during the period. Spire Wealth Management increased its stake in shares of Darling Ingredients by 19.8% in the 1st quarter. Spire Wealth Management now owns 2,831 shares of the company's stock valued at $88,000 after acquiring an additional 468 shares in the last quarter. Finally, State of Alaska Department of Revenue increased its stake in shares of Darling Ingredients by 2.6% in the 1st quarter. State of Alaska Department of Revenue now owns 18,610 shares of the company's stock valued at $581,000 after acquiring an additional 470 shares in the last quarter. 94.44% of the stock is owned by institutional investors.

Darling Ingredients Stock Down 3.6%

Shares of DAR stock traded down $1.25 during trading on Friday, reaching $33.94. The company's stock had a trading volume of 951,644 shares, compared to its average volume of 2,392,430. The business has a fifty day moving average price of $35.27 and a 200-day moving average price of $34.30. The company has a quick ratio of 0.83, a current ratio of 1.40 and a debt-to-equity ratio of 0.84. The company has a market cap of $5.37 billion, a price-to-earnings ratio of 31.72 and a beta of 1.23. Darling Ingredients has a one year low of $26.00 and a one year high of $43.49.

Darling Ingredients (NYSE:DAR - Get Free Report) last announced its quarterly earnings data on Thursday, July 24th. The company reported $0.09 EPS for the quarter, missing analysts' consensus estimates of $0.12 by ($0.03). Darling Ingredients had a return on equity of 3.78% and a net margin of 3.02%. The business had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.49 billion. During the same period in the prior year, the firm earned $0.49 EPS. The business's revenue for the quarter was up 1.8% compared to the same quarter last year. Analysts anticipate that Darling Ingredients will post 2.81 earnings per share for the current year.

Analysts Set New Price Targets

A number of brokerages have weighed in on DAR. TD Cowen cut their price target on shares of Darling Ingredients from $37.00 to $34.00 and set a "hold" rating on the stock in a research note on Friday, April 25th. Citigroup cut their price target on shares of Darling Ingredients from $45.00 to $44.00 and set a "buy" rating on the stock in a research note on Tuesday, April 15th. Jefferies Financial Group lifted their price target on shares of Darling Ingredients from $45.00 to $46.00 and gave the company a "buy" rating in a research note on Monday, July 7th. Tudor Pickering raised shares of Darling Ingredients from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, June 11th. Finally, Robert W. Baird reaffirmed a "neutral" rating and issued a $36.00 price target (down previously from $40.00) on shares of Darling Ingredients in a research note on Friday. Three research analysts have rated the stock with a hold rating, five have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $45.57.

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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