BlackRock Inc. Buys New Holdings in Darling Ingredients Inc. $DAR

Key Points

• BlackRock acquired 15.6 million Darling Ingredients shares worth approximately $851.5 million, giving it a 9.81% stake. Institutional investors collectively own 94.44% of the company.
• Darling reported strong quarterly results, with $2.41 in EPS versus the $1.40 consensus estimate and revenue of $1.72 billion, up 16.4% year over year. The company also expanded its share-repurchase authorization to $1 billion.
• Analyst sentiment is favorable, with a consensus “Moderate Buy” rating and a $69 price target, but insider selling, rising costs, capacity constraints and renewable-fuel policy risks remain potential concerns.

BlackRock Inc. bought a new position in shares of Darling Ingredients Inc. (NYSE:DAR - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund bought 15,588,612 shares of the company's stock, valued at approximately $851,450,000. BlackRock Inc. owned about 9.81% of Darling Ingredients at the end of the most recent quarter.

Other hedge funds have also added to or reduced their stakes in the company. Vanguard Group Inc. lifted its holdings in Darling Ingredients by 3.4% during the 4th quarter. Vanguard Group Inc. now owns 15,394,342 shares of the company's stock worth $554,196,000 after purchasing an additional 512,219 shares during the last quarter. Dimensional Fund Advisors LP grew its position in shares of Darling Ingredients by 0.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 8,066,971 shares of the company's stock worth $498,927,000 after purchasing an additional 47,565 shares in the last quarter. Deutsche Bank AG acquired a new position in shares of Darling Ingredients during the 2nd quarter worth approximately $168,348,000. Davis Selected Advisers increased its holdings in shares of Darling Ingredients by 15.8% during the fourth quarter. Davis Selected Advisers now owns 2,842,306 shares of the company's stock worth $102,324,000 after purchasing an additional 388,366 shares during the period. Finally, Geode Capital Management LLC increased its holdings in shares of Darling Ingredients by 2.8% during the fourth quarter. Geode Capital Management LLC now owns 2,839,649 shares of the company's stock worth $102,249,000 after purchasing an additional 76,151 shares during the period. Institutional investors and hedge funds own 94.44% of the company's stock.

Insider Activity at Darling Ingredients

In other news, EVP Patrick Mcnutt sold 8,000 shares of the firm's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $67.09, for a total value of $536,720.00. Following the completion of the sale, the executive vice president directly owned 35,777 shares in the company, valued at $2,400,278.93. This trade represents a 18.27% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CAO Joseph Manzi sold 1,000 shares of Darling Ingredients stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $67.27, for a total transaction of $67,270.00. Following the completion of the sale, the chief accounting officer directly owned 18,969 shares of the company's stock, valued at approximately $1,276,044.63. The trade was a 5.01% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 10,591 shares of company stock valued at $704,303 in the last ninety days. Insiders own 1.90% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have weighed in on DAR shares. Weiss Ratings raised Darling Ingredients from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, August 11th. Barclays increased their target price 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 report on Wednesday. JPMorgan Chase & Co. raised their target price on shares of Darling Ingredients from $78.00 to $79.00 and gave the company an "overweight" rating in a report on Tuesday, May 12th. Finally, Wall Street Zen upgraded shares of Darling Ingredients from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 15th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $69.00.

Key Headlines Impacting 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.

Darling Ingredients Price Performance

DAR stock opened at $65.56 on Friday. The company has a fifty day moving average price of $59.86 and a 200-day moving average price of $58.29. The company has a market capitalization of $10.35 billion, a P/E ratio of 17.67 and a beta of 1.02. Darling Ingredients Inc. has a 52-week low of $29.15 and a 52-week high of $69.98. 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 - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported $2.41 EPS for the quarter, beating analysts' consensus estimates of $1.40 by $1.01. Darling Ingredients had a return on equity of 12.98% and a net margin of 9.13%.The firm had revenue of $1.72 billion for the quarter, compared to analyst estimates of $1.71 billion. During the same quarter in the previous year, the company posted $0.08 EPS. The business's revenue was up 16.4% on a year-over-year basis. As a group, equities analysts expect that Darling Ingredients Inc. will post 6.98 EPS for the current year.

Darling Ingredients Profile

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.

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