Darling Ingredients (NYSE:DAR) Shares Gap Down Following Weak Earnings

Darling Ingredients Inc. (NYSE:DAR) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $38.25, but opened at $36.50. Darling Ingredients shares last traded at $37.97, with a volume of 798,432 shares.

The company reported $0.11 EPS for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.29). Darling Ingredients had a return on equity of 8.38% and a net margin of 6.04%. The business had revenue of $1.42 billion during the quarter, compared to analyst estimates of $1.48 billion. During the same period in the prior year, the firm posted $0.77 EPS. Darling Ingredients’s revenue for the quarter was down 12.5% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on DAR shares. Jefferies Financial Group increased their price objective on shares of Darling Ingredients from $44.00 to $46.00 and gave the stock a “buy” rating in a report on Friday. Scotiabank lowered their price target on shares of Darling Ingredients from $57.00 to $45.00 and set a “sector outperform” rating for the company in a report on Friday, July 12th. TD Cowen dropped their price objective on shares of Darling Ingredients from $45.00 to $43.00 and set a “hold” rating for the company in a research report on Friday, September 13th. Finally, Piper Sandler decreased their price objective on Darling Ingredients from $50.00 to $48.00 and set an “overweight” rating on the stock in a research report on Friday, October 11th. Two equities research analysts have rated the stock with a hold rating, seven have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, Darling Ingredients currently has a consensus rating of “Moderate Buy” and an average price target of $55.90.

Insider Activity

In related news, EVP Robert W. Day purchased 2,532 shares of Darling Ingredients stock in a transaction dated Wednesday, July 31st. The shares were acquired at an average cost of $39.37 per share, for a total transaction of $99,684.84. Following the transaction, the executive vice president now directly owns 12,607 shares of the company’s stock, valued at approximately $496,337.59. This trade represents a 0.00 % increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. 2.62% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Jennison Associates LLC increased its stake in Darling Ingredients by 55.0% in the first quarter. Jennison Associates LLC now owns 1,562,739 shares of the company’s stock valued at $72,683,000 after purchasing an additional 554,512 shares in the last quarter. BNP Paribas Financial Markets increased its position in shares of Darling Ingredients by 34.8% in the 1st quarter. BNP Paribas Financial Markets now owns 114,823 shares of the company’s stock valued at $5,340,000 after buying an additional 29,660 shares in the last quarter. Tidal Investments LLC acquired a new stake in Darling Ingredients during the 1st quarter worth $1,462,000. Nordea Investment Management AB lifted its holdings in Darling Ingredients by 6.1% during the first quarter. Nordea Investment Management AB now owns 668,413 shares of the company’s stock worth $31,188,000 after acquiring an additional 38,618 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in Darling Ingredients by 42.2% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 91,863 shares of the company’s stock valued at $4,273,000 after acquiring an additional 27,243 shares during the period. Institutional investors own 94.44% of the company’s stock.

Darling Ingredients Stock Up 3.6 %

The company has a quick ratio of 0.91, a current ratio of 1.57 and a debt-to-equity ratio of 0.95. The firm has a fifty day simple moving average of $37.60 and a 200-day simple moving average of $39.00. The company has a market capitalization of $6.25 billion, a P/E ratio of 11.71 and a beta of 1.24.

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.