Zacks Research Upgrades Darling Ingredients (NYSE:DAR) to "Strong-Buy"

Key Points

• Zacks Research upgraded Darling Ingredients to “Strong Buy” from “Hold.” Overall, analysts maintain a “Moderate Buy” consensus, with a $69.00 average price target.
• Darling Ingredients reported strong quarterly results, earning $2.41 per share versus the $1.40 consensus estimate, while revenue rose 16.4% year over year to $1.72 billion.
• The stock opened at $67.74, near its 12-month high of $69.98. Institutional investors own 94.44% of the company, while recent insider activity included both an executive sale and a director purchase.

Darling Ingredients (NYSE:DAR - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Wednesday,Zacks.com reports.

Several other brokerages have also issued reports on DAR. TD Cowen boosted their target price on Darling Ingredients from $70.00 to $80.00 and gave the company a "buy" rating in a research report on Monday, July 27th. Scotiabank increased their price target on Darling Ingredients from $61.00 to $70.00 and gave the stock a "sector outperform" rating in a report on Wednesday, April 22nd. Stephens raised their price target on Darling Ingredients from $65.00 to $70.00 and gave the stock an "overweight" rating in a research note on Tuesday, April 21st. JPMorgan Chase & Co. boosted their price objective on Darling Ingredients from $78.00 to $79.00 and gave the company an "overweight" rating in a report on Tuesday, May 12th. Finally, Jefferies Financial Group upped their price objective on Darling Ingredients from $73.00 to $75.00 and gave the company a "buy" rating in a research report on Monday, May 4th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $69.00.

Darling Ingredients Price Performance

Darling Ingredients stock opened at $67.74 on Wednesday. The firm has a 50-day moving average price of $59.69 and a 200-day moving average price of $58.24. The firm has a market capitalization of $10.69 billion, a PE ratio of 18.26 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 has a 12-month low of $29.15 and a 12-month high of $69.98.

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

Insider Activity at Darling Ingredients

In other news, EVP Nicholas James Kemphaus sold 1,591 shares of Darling Ingredients stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $63.05, for a total transaction of $100,312.55. Following the completion of the sale, the executive vice president owned 35,087 shares of the company's stock, valued at approximately $2,212,235.35. The trade was a 4.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Charles L. Adair purchased 1,000 shares of the stock in a transaction that occurred on Friday, July 31st. The stock was purchased at an average price of $60.97 per share, with a total value of $60,970.00. Following the acquisition, the director directly owned 51,690 shares of the company's stock, valued at $3,151,539.30. This trade represents a 1.97% increase in their position. The SEC filing for this purchase provides additional information. Insiders have sold 10,591 shares of company stock valued at $704,303 over the last 90 days. 1.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Darling Ingredients

Several institutional investors have recently made changes to their positions in DAR. SJS Investment Consulting Inc. lifted its stake in Darling Ingredients by 69.9% in the first quarter. SJS Investment Consulting Inc. now owns 423 shares of the company's stock worth $26,000 after acquiring an additional 174 shares during the period. Allworth Financial LP raised its holdings in shares of Darling Ingredients by 227.2% in the 4th quarter. Allworth Financial LP now owns 733 shares of the company's stock valued at $26,000 after purchasing an additional 509 shares in the last quarter. Cedar Mountain Advisors LLC purchased a new stake in shares of Darling Ingredients in the 1st quarter worth approximately $47,000. Litman Gregory Wealth Management LLC bought a new position in shares of Darling Ingredients during the fourth quarter valued at approximately $29,000. Finally, Danske Bank A S bought a new position in shares of Darling Ingredients during the third quarter valued at approximately $25,000. Hedge funds and other institutional investors own 94.44% of the company's stock.

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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