Assessing the Ownership Landscape of Darling Ingredients Inc(DAR)
Darling Ingredients Inc (NYSE:DAR) is a leading developer and manufacturer of sustainable ingredients for customers in the pharmaceutical, food, pet food, fuel, and fertilizer industries. The company collects and transforms all aspects of animal by-product streams into ingredients, including gelatin, fats, proteins, pet food ingredients, fertilizers, and other specialty products. It also recovers and converts used cooking oil and bakery remnants into feed and fuel ingredients. Darling Ingredients Inc operates through three primary business segments: feed ingredients, food ingredients, and fuel ingredients. The company derives the majority of its revenue from customers in North America.
Ownership and Performance Overview
As of the latest available data, Darling Ingredients Inc has an outstanding share count of 159.49 million. Institutional ownership stands at 121.08 million shares, constituting 75.92% of the total shares. Meanwhile, insiders hold 4.55 million shares, accounting for 2.85% of the total share count. The company's recent performance and ownership trends are depicted in the chart below:
Over the past week, Darling Ingredients Inc's stock value has declined by about 2.91%. As of Oct 18, 2023, the stock fell by 0.76%, contrasting with its three-month return of -28.03%. The company's market cap rose to $10.17 billion in the most recent quarter from $9.32 billion in the preceding one, indicating notable market volatility.
Institutional Ownership and Key Players
The company's institutional ownership history reveals the levels of trust and confidence that major players have in the company's future. As of 2023-09-30, Darling Ingredients Inc's institutional ownership level is 75.92%, down from 76.32% as of 2023-06-30, and down from 91.09% from a year ago.
Among the most significant stakeholders, the top fund managers owning chunks of Darling Ingredients Inc's stock are Chris Davis (Trades, Portfolio), Barrow, Hanley, Mewhinney & Strauss (Trades, Portfolio), and Steven Scruggs (Trades, Portfolio), with 2%, 0.6%, and 0.1% of shares outstanding respectively. Recent institutional trading activity paints a vivid picture of the market sentiment.
Delving into Earnings: Past and Future
Over the past three years, Darling Ingredients Inc's Ebitda growth averaged 22.7% per year, outperforming 73.25% of companies in the Consumer Packaged Goods industry. This growth extends to the five-year marker, with a growth of 26.5%. Looking forward, the estimated earnings growth for Darling Ingredients Inc is 0% per year, lower than the earnings growth of 34.1% during the past three years.
Insider Ownership and Activities
Darling Ingredients Inc's insider ownership is approximately 2.85% as of 2023-08-31, compared to insider ownership of 2.7% from a year ago, reflecting the increased faith of those intimately familiar with the company's operations. Recent insider trades provide a nuanced view of this sentiment.
During the past three months, Darling Ingredients Inc had 5 insider sell transactions and 1 insider buy transaction, as detailed below:
Next Steps
In the ever-evolving realm of stocks, understanding the nuances of ownership and earnings is critical. Darling Ingredients Inc's recent dip is a case study in how major players react to market shifts, and their movements offer crucial insights for potential investors. As always, a holistic view, combining both past performance and future projections, remains key to sound investment decisions. Screen for stocks with high Insider Cluster Buys using the following page: https://www.gurufocus.com/insider/cluster.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
