Palo Duro Investment Partners LP Makes New Investment in Darling Ingredients Inc. $DAR

Key Points

• Palo Duro Investment Partners purchased 988,289 shares of Darling Ingredients, worth approximately $54 million, making up 10.4% of the fund’s portfolio and representing a 0.63% stake in the company.
• Darling Ingredients reported strong quarterly results, with earnings of $2.41 per share versus the $1.40 consensus estimate and revenue up 16.4% year over year to $1.72 billion.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and a $69 price target; several firms recently raised their targets, including TD Cowen to $80.

Palo Duro Investment Partners LP purchased a new stake in Darling Ingredients Inc. (NYSE:DAR - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 988,289 shares of the company's stock, valued at approximately $53,980,000. Darling Ingredients accounts for about 10.4% of Palo Duro Investment Partners LP's holdings, making the stock its 4th biggest position. Palo Duro Investment Partners LP owned 0.63% of Darling Ingredients as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in DAR. Goldman Sachs Group Inc. raised its position in Darling Ingredients by 17.0% in the first quarter. Goldman Sachs Group Inc. now owns 644,022 shares of the company's stock worth $20,119,000 after purchasing an additional 93,408 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Darling Ingredients by 10.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 600,777 shares of the company's stock worth $18,768,000 after buying an additional 58,925 shares during the period. Focus Partners Wealth bought a new position in shares of Darling Ingredients during the 1st quarter worth approximately $205,000. M&T Bank Corp boosted its stake in Darling Ingredients by 11.2% in the 2nd quarter. M&T Bank Corp now owns 8,384 shares of the company's stock valued at $318,000 after buying an additional 847 shares in the last quarter. Finally, Invesco Ltd. grew its position in Darling Ingredients by 5.0% in the second quarter. Invesco Ltd. now owns 677,528 shares of the company's stock valued at $25,705,000 after acquiring an additional 32,553 shares during the period. 94.44% of the stock is owned by institutional investors.

Darling Ingredients Trading Down 0.0%

Shares of NYSE DAR opened at $62.56 on Thursday. Darling Ingredients Inc. has a 1-year low of $29.15 and a 1-year high of $69.98. The company has a 50-day moving average of $60.31 and a two-hundred day moving average of $58.68. The company has a market cap of $9.87 billion, a PE ratio of 16.86 and a beta of 1.02. The company has a current ratio of 1.56, a quick ratio of 1.03 and a debt-to-equity ratio of 0.73.

Darling Ingredients (NYSE:DAR - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $2.41 earnings per share for the quarter, beating analysts' consensus estimates of $1.40 by $1.01. Darling Ingredients had a net margin of 9.13% and a return on equity of 12.98%. The business had revenue of $1.72 billion during the quarter, compared to analyst estimates of $1.71 billion. During the same quarter last year, the business posted $0.08 earnings per share. Darling Ingredients's revenue for the quarter was up 16.4% compared to the same quarter last year. As a group, equities analysts expect that Darling Ingredients Inc. will post 6.98 earnings per share for the current fiscal year.

Insider Transactions at Darling Ingredients

In related news, EVP Nicholas James Kemphaus sold 1,591 shares of Darling Ingredients stock in a transaction dated Monday, August 10th. The stock was 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 in the company, valued at $2,212,235.35. This trade represents a 4.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Charles L. Adair bought 1,000 shares of the business's stock in a transaction on Friday, July 31st. The shares were acquired at an average price of $60.97 per share, for a total transaction of $60,970.00. Following the completion of the transaction, the director owned 51,690 shares in the company, valued at approximately $3,151,539.30. This trade represents a 1.97% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold a total of 10,591 shares of company stock valued at $704,303 over the last quarter. Corporate insiders own 1.90% of the company's stock.

Analysts Set New Price Targets

Several brokerages have recently commented on DAR. TD Cowen boosted their target price on shares of Darling Ingredients from $70.00 to $80.00 and gave the company a "buy" rating in a research note on Monday, July 27th. JPMorgan Chase & Co. increased their target price on shares of Darling Ingredients from $78.00 to $79.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 12th. Zacks Research raised shares of Darling Ingredients from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 19th. Jefferies Financial Group boosted their price target on shares of Darling Ingredients from $73.00 to $75.00 and gave the company a "buy" rating in a research report on Monday, May 4th. Finally, Wall Street Zen raised shares of Darling Ingredients from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 15th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $69.00.

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.

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