Something To Watch Before Buying Darling Ingredients Inc. (NYSE:DAR)

Darling Ingredients Inc. (NYSE:DAR) has a beta of 1.06, a 12-month trailing P/E ratio of 31.25, and a growth ratio of 1.15. The stock’s Relative Strength Index (RSI) is 50.53, with weekly volatility at 3.54% and ATR at 2.99. The DAR stock’s 52-week price range has touched low of $21.93 and a $79.65 high. Its shares traded lower over the last trading session, losing -0.90% on 06/03/21. The shares fell to a low of $68.73 before closing at $70.81. Intraday shares traded counted 1.12 million, which was 30.17% higher than its 30-day average trading volume of 1.60M. DAR’s previous close was $71.45 while the outstanding shares total 163.15M.

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Investors have identified the Packaged Foods company Darling Ingredients Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $11.72 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Darling Ingredients Inc. (DAR) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For DAR, the company has in raw cash 71.38 million on their books with 27.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 940.77 million total, with 637.71 million as their total liabilities.

DAR were able to record 78.05 million as free cash flow during the 08/11/2021 quarter of the year, this saw their quarterly net cash flow reduce by -10.34 million. In cash movements, the company had a total of 138.81 million as operating cash flow.

Potential earnings growth for Darling Ingredients Inc. (DAR)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/11/2021 quarter of the year, Darling Ingredients Inc. recorded a total of 1.05 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 18.52% coming in sequential stages and their sales for the 08/11/2021 quarter increasing by 2.57%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 772.78 million trying to sell their products during the last quarter, with the result yielding a gross income of 273.93 million. This allows shareholders to hold on to 163.15M with the recently reported earning now reading 0.94 cents per share. This is a figure that compared to analyst’s prediction for their 08/11/2021 (0.90 cents a share).

Having a look at the company’s valuation, the company is expected to record 4.24 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on DAR sounds very interesting.

Is the stock of DAR attractive?

In related news, Director, Adair Charles L bought 500 shares of the company’s stock in a transaction that recorded on May 20. The purchase was performed at an average price of 65.84, for a total value of 32,920. As the purchase deal closes, the Director, Kloosterboer Dirk now sold 20,000 shares of the company’s stock, valued at 1,534,200. Also, EVP – Darling US Rendering Ops, Elrod Rick A sold 20,535 shares of the company’s stock in a deal that was recorded on Mar 09. The shares were cost at an average price of 76.72 per share, with a total market value of 1,575,445. Following this completion of disposal, the EVP – Rousselot, Vervoort Jos now holds 10,000 shares of the company’s stock, valued at 760,900. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.30%.

8 out of 11 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Darling Ingredients Inc.. 0 analysts has assigned a Sell rating on the DAR stock. The 12-month mean consensus price target for the company’s shares has been set at $86.90.