Two Seas Capital LP Invests $28.21 Million in Darling Ingredients Inc. $DAR

Two Seas Capital LP purchased a new stake in shares of Darling Ingredients Inc. (NYSE:DAR) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 516,527 shares of the company’s stock, valued at approximately $28,213,000. Darling Ingredients makes up approximately 0.6% of Two Seas Capital LP’s investment portfolio, making the stock its 24th biggest position.

Several other institutional investors also recently modified their holdings of DAR. SJS Investment Consulting Inc. increased its holdings in Darling Ingredients by 69.9% in the 1st quarter. SJS Investment Consulting Inc. now owns 423 shares of the company’s stock worth $26,000 after buying an additional 174 shares in the last quarter. Allworth Financial LP raised its position in Darling Ingredients by 227.2% in the 4th quarter. Allworth Financial LP now owns 733 shares of the company’s stock worth $26,000 after buying an additional 509 shares during the last quarter. Cedar Mountain Advisors LLC bought a new position in Darling Ingredients during the 1st quarter valued at about $47,000. Litman Gregory Wealth Management LLC bought a new position in Darling Ingredients during the 4th quarter valued at about $29,000. Finally, Danske Bank A S purchased a new stake in shares of Darling Ingredients during the 3rd quarter valued at about $25,000. 94.44% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Darling Ingredients

In related news, EVP Nicholas James Kemphaus sold 1,591 shares of the business’s 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 directly owned 35,087 shares in the company, valued at approximately $2,212,235.35. The trade was a 4.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO Joseph Manzi sold 1,000 shares of the business’s stock in a transaction that occurred 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 sale, the chief accounting officer owned 18,969 shares of the company’s stock, valued at $1,276,044.63. This trade represents a 5.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 10,591 shares of company stock worth $704,303. 1.90% of the stock is owned by corporate insiders.

Key Darling Ingredients News

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.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the stock. Weiss Ratings upgraded shares of Darling Ingredients from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, August 11th. Barclays increased their price objective on shares of Darling Ingredients from $62.00 to $65.00 and gave the company an “equal weight” rating in a research report on Monday, August 3rd. Wall Street Zen upgraded shares of Darling Ingredients from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 15th. JPMorgan Chase & Co. lifted 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. Finally, 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. One research 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.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $69.00.

Darling Ingredients Trading Down 3.4%

Shares of NYSE:DAR opened at $65.56 on Friday. The stock has a market capitalization of $10.35 billion, a price-to-earnings ratio of 17.67 and a beta of 1.02. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.03 and a current ratio of 1.56. The stock’s 50-day simple moving average is $59.86 and its two-hundred day simple moving average is $58.29. Darling Ingredients Inc. has a 52-week low of $29.15 and a 52-week high of $69.98.

Darling Ingredients (NYSE:DAR) last released its quarterly earnings results on Thursday, July 30th. The company reported $2.41 earnings per share (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 business had revenue of $1.72 billion during the quarter, compared to the consensus estimate of $1.71 billion. During the same period in the previous year, the company posted $0.08 EPS. The business’s quarterly revenue was up 16.4% compared to the same quarter last year. Analysts expect that Darling Ingredients Inc. will post 6.98 EPS for the current year.

Darling Ingredients Company 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.