Darling Ingredients Inc. (NYSE:DAR) grew as high as $19.26 on Thursday before closing at $18.76. The -2.6 percent plunge dragged its market cap to $3.09B. The shares went down as low as $18.39 before recovering. Trading activity significantly improved as the volume at ready counter increased to 2,153,591 shares versus 780,410 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 945,054 shares. The stock is now 18.73% above against its bear-market low of $15.8 on November 15, 2017. It has retreated -11.73% since it’s 52-week high of $20.96 reached in August. Now the market price is up 5.45% on the year and up 3.47% YTD.
DAR’s 50 day simple moving average (SMA 50) price is $19.89 and its 200-day simple moving average (SMA 200) price is $18.54. The company’s stock currently has a total float of 162.42M shares. Its weekly volatility is hovering around 2.06% and felt 1.63% volatility in price over a month. On the upside, the share price will test short term resistance at around $19.22. On a downside, the stock is likely to find some support, which begins at $18.35. The failure to get near-term support could push it to $17.93.
The insider holding in Darling Ingredients Inc. (DAR) stood at 1.4% while institutions hold 0%. Southernsun Asset Management, Llc is the largest single holder among mutual funds with ownership of over 10.42M DAR shares as of June 30, with a market value of approx. $207.12M as of today. The second largest holder, Earnest Partners Llc, with 5.45M shares which equates to $108.29M worth of the stock. At third is Barrow, Hanley, Mewhinney & Strauss, which stood pat with 3.71M shares, a 2.39% position in Darling Ingredients Inc., worth $73.81M.
Separately, it has been reported that multiple insider activity took place at Darling Ingredients Inc. (DAR). EVP – CFO Lynch Patrick C acquired 18,337 shares for $147,295 in transaction occurred on 2017/05/23. After making this transaction, the EVP – CFO owns a direct stake of 300,543 shares, worth $2,763,254, as per the last closing price. On 2017/05/19 Lynch Patrick C, EVP – CFO at DAR, purchased 18,820 shares at an average price of $15.93 per share. The new stake is valued at $2,419,252.
EVP – CFO, Lynch Patrick C had invested in 19,710 shares for $110,138 through a trade on 2017/05/17. Following this activity, the insider holds 299,592 shares worth $2,066,189 as of recent close.Wall Street’s most bullish Darling Ingredients Inc. (NYSE:DAR) analysts are predicting the share price to blow past $25 per share during the next 12 months. The current median share price forecast by them is $23, suggesting that the stock could increase 22.6% in that time frame. The average price target of $22.75 calls for a nearly 21.27% increase in the stock price.
It had seen a negative analyst call from Goldman, which downgraded the stock from Buy to Neutral on March 01. Analysts at JP Morgan, shed their positive views on October 06 by lowering it fromOverweight to Neutral. Analysts at Robert W. Baird, made their first call about the stock on March 23, recommending it is Outperform. Goldman analysts came out with bullish views on June 29 when the call was made. They think the stock is now Buy compared to to their prior call for Neutral.
When looking at valuations, Darling Ingredients Inc. (DAR) has a pricey P/E of 21.94x as compared to industry average of 20.78x. Moreover, it trades for 18.97 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.36x price/book and 0.86x price/sales. Compared to others, Darling Ingredients Inc. is in a different league with regards to profitability, having net margins of 5%. To put some perspective around this, the industry’s average net margin is 8%. DAR’s ROE is 8%, which is also considerably worse than the industry’s ROE of 14.84%. It’s also very liquid in the near term, with a current ratio of 1.9. The stock has a debt/capital of 0.75.
Shares of Darling Ingredients Inc. (DAR) have dropped -13.2% since the company’s Sep-18 earnings report. Over the past 12 fiscal quarters, Darling Ingredients Inc. (NYSE:DAR) has topped consensus earnings estimates in 5 quarters (41%), missed earnings in 6 quarters (50%), whereas at 1 occasion EPS met analyst expectations. DAR last reported earnings on August 08, 2018 when it released Jun-18 results that exceeded expectations. The company raked in $0.14 per share, -99.49% change on the same period last year. That was better than consensus for $0.11. Revenue for the recent quarter stood at $846.65 million, down -6% on last year and below the $865.8 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $848 million to $949.7 million, which should be compared with $0 generated last year. EPS is seen in a range of $0.07 to $0.22, against the $0.25 reported a year ago.
This post was originally published on *this site*