Darling Ingredients Inc. (NYSE: DAR) stock jumped 1.41% on Friday to $71.92 against a previous-day closing price of $70.92. With 1.24 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.61 million shares. During the session, the Packaged Foods company that operates in wider Consumer Defensive sector, reached to the highest price of $72.26 whereas the lowest price it dropped to was $70.39. The 52-week range on DAR shows that it touched its highest point at $87.59 and its lowest point at $55.71 during that stretch. It currently has a 1-year price target of $96.00. Beta for the stock currently stands at 1.24.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DAR was up-trending over the past week, with a rise of 13.73%, but this was up by 20.77% over a month. Three-month performance dropped to -5.68% while six-month performance rose 12.50%. The stock gained 3.57% in the past year, while it has gained 3.80% so far this year. A look at the trailing 12-month EPS for DAR yields 4.13 with Next year EPS estimates of 6.65. For the next quarter, that number is 1.27. This implies an EPS growth rate of 119.40% for this year and 26.34% for next year. EPS is expected to grow by 42.99% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 44.50%.
Float and Shares Shorts:
At present, 161.40 million DAR shares are outstanding with a float of 160.09 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.62 million, which was 2.24% higher than short shares on Jun 14, 2022. In addition to EAR as the firm’s Eargo, Inc., DAL serves as its Delta Air Lines, Inc.
Other institutions hold 60.07% of DAR, in contrast to 35.44% held by mutual funds. Shares owned by individuals account for 20.98%. As the largest shareholder in DAR with 9.98% of the stake, The Vanguard Group, Inc. holds 16,113,118 shares worth 16,113,118. A second-largest stockholder of DAR, BlackRock Fund Advisors, holds 12,216,975 shares, controlling over 7.56% of the firm’s shares. T. Rowe Price Associates, Inc. is the third largest shareholder in DAR, holding 9,243,950 shares or 5.72% stake. With a 2.95% stake in DAR, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 4,764,130 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.89% of DAR stock, is the second-largest Mutual Fund holder. It holds 4,659,995 shares valued at 278.67 million. Vanguard Small Cap Index Fund holds 2.53% of the stake in DAR, owning 4,081,382 shares worth 244.07 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DAR since 12 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DAR analysts setting a high price target of $115.00 and a low target of $75.00, the average target price over the next 12 months is $94.83. Based on these targets, DAR could surge 59.9% to reach the target high and rise by 4.28% to reach the target low. Reaching the average price target will result in a growth of 31.85% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DAR will report FY 2022 earnings on 02/28/2023. Analysts have provided yearly estimates in a range of $5.85 being high and $4.91 being low. For DAR, this leads to a yearly average estimate of $5.23. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Darling Ingredients Inc. surprised analysts by $0.04 when it reported $1.14 EPS against a consensus estimate of $1.10. The surprise factor in the prior quarter was -$0.01. Based on analyst estimates, the high estimate for the next quarter is $1.41 and the low estimate is $1.05. The average estimate for the next quarter is thus $1.26.
Summary of Insider Activity:
Insiders traded DAR stock several times over the past three months with 14 Buys and 11 Sells. In these transactions, 87,717 shares were bought while 219,469 shares were sold. The number of buy transactions has increased to 45 while that of sell transactions has risen to 61 over the past year. The total number of shares bought during that period was 811,356 while 1,111,269 shares were sold.