Darling Ingredients Inc (NYSE: DAR) has experienced a rise in its stock price by 4.30 compared to its previous closing price of 44.42. However, the company has seen a gain of 1.33% in its stock price over the last five trading days. Seeking Alpha reported 2024-03-11 that Darling Ingredients has seen strong operating momentum in recent years, supported by transformative acquisitions. The shortfall in earnings is mainly due to the Diamond Green Diesel joint venture, as concerns about leverage have risen. Despite higher leverage, I still think that the long-term bull case prevails, provided that focus remains on execution and deleveraging.
Is It Worth Investing in Darling Ingredients Inc (NYSE: DAR) Right Now?
The price-to-earnings ratio for Darling Ingredients Inc (NYSE: DAR) is above average at 11.62x. The 36-month beta value for DAR is also noteworthy at 1.29. There are mixed opinions on the stock, with 4 analysts rating it as a “buy,” 3 rating it as “overweight,” 1 rating it as “hold,” and 0 rating it as “sell.”
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The public float for DAR is 157.62M, and at present, short sellers hold a 5.10% of that float. The average trading volume of DAR on March 28, 2024 was 1.93M shares.
DAR’s Market Performance
DAR stock saw an increase of 1.33% in the past week, with a monthly gain of 8.20% and a quarterly increase of -8.20%. The volatility ratio for the week is 2.62%, and the volatility levels for the last 30 days are 3.22% for Darling Ingredients Inc (DAR). The simple moving average for the last 20 days is 5.33% for DAR’s stock, with a simple moving average of -10.19% for the last 200 days.
Analysts’ Opinion of DAR
Many brokerage firms have already submitted their reports for DAR stocks, with Citigroup repeating the rating for DAR by listing it as a “Neutral.” The predicted price for DAR in the upcoming period, according to Citigroup is $49 based on the research report published on February 01, 2024 of the current year 2024.
BMO Capital Markets gave a rating of “Outperform” to DAR, setting the target price at $80 in the report published on April 14th of the previous year.
DAR Trading at 6.89% from the 50-Day Moving Average
After a stumble in the market that brought DAR to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -35.29% of loss for the given period.
Volatility was left at 3.22%, however, over the last 30 days, the volatility rate increased by 2.62%, as shares surge +13.86% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +3.58% upper at present.
During the last 5 trading sessions, DAR rose by +1.33%, which changed the moving average for the period of 200-days by -26.57% in comparison to the 20-day moving average, which settled at $44.27. In addition, Darling Ingredients Inc saw -7.04% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at DAR starting from JANSEN MATTHEW J, who purchase 6,000 shares at the price of $42.76 back on Mar 04 ’24. After this action, JANSEN MATTHEW J now owns 74,065 shares of Darling Ingredients Inc, valued at $256,560 using the latest closing price.
Stoffel Kurt, the Director of Darling Ingredients Inc, purchase 8,000 shares at $41.62 during a trade that took place back on Feb 29 ’24, which means that Stoffel Kurt is holding 10,571 shares at $332,960 based on the most recent closing price.
Stock Fundamentals for DAR
Current profitability levels for the company are sitting at:
- 0.08 for the present operating margin
- 0.16 for the gross margin
The net margin for Darling Ingredients Inc stands at 0.1. The total capital return value is set at 0.05. Equity return is now at value 15.40, with 6.39 for asset returns.
Based on Darling Ingredients Inc (DAR), the company’s capital structure generated 0.49 points at debt to capital in total, while cash flow to debt ratio is standing at 0.2. The debt to equity ratio resting at 0.97. The interest coverage ratio of the stock is 2.13.
Currently, EBITDA for the company is 1.06 billion with net debt to EBITDA at 4.28. When we switch over and look at the enterprise to sales, we see a ratio of 1.76. The receivables turnover for the company is 8.21for trailing twelve months and the total asset turnover is 0.61. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.86.
Conclusion
In summary, Darling Ingredients Inc (DAR) has had a mixed performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
