DAR Should I Buy
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Darling Ingredients Inc. (DAR) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock has strong positive catalysts, improving fundamentals, and a favorable analyst outlook, making it a solid long-term investment despite short-term technical overbought signals.
The stock is currently overbought with an RSI of 88.17, indicating potential short-term exhaustion. However, moving averages are bullish (SMA_5 > SMA_20 > SMA_200), and the price is trading above key pivot levels, suggesting an overall upward trend. MACD is negative and expanding downward, signaling short-term caution.
Analysts have raised price targets significantly, with the highest target at $66, indicating strong confidence in future growth.
Hedge funds are neutral, and Palo Duro Investment Partners recently acquired a significant stake, reflecting institutional confidence.
The company reported strong revenue growth (+20.60% YoY) and improving gross margins (+16.83% YoY).
Positive momentum from renewable volume obligations (RVO) and rising fat demand supports growth in key segments.
Insiders are selling, with a 139.80% increase in selling activity over the last month.
Net income and EPS have declined significantly (-44.13% and -44.44% YoY, respectively), raising concerns about profitability.
MACD and RSI indicate potential short-term weakness or overbought conditions.
In Q4 2025, revenue increased by 20.60% YoY to $1.71 billion, and gross margin improved by 16.83% YoY to 16.94%. However, net income dropped by 44.13% YoY to $56.94 million, and EPS declined by 44.44% YoY to $0.35, highlighting profitability challenges despite strong top-line growth.
Analysts are overwhelmingly positive, with multiple firms raising price targets significantly (up to $66) and maintaining Buy or Outperform ratings. Analysts cite strong operational momentum, favorable RVO outcomes, and improving feedstock trends as key drivers of future growth.
