Jefferies: EPA 2026-2027 Biofuel Standards Positive for Darling Ingredients and Archer Daniels
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy DAR?
Jefferies notes that EPA on Friday released its final renewable fuel standard volume mandates for 2026 and 2027, setting the highest biofuel blending requirements in the program's 20-year history. The updated RVO represents "a meaningful tailwind" for Darling Ingredients (DAR) and Archer Daniels (ADM), says the analyst, who also calls the EPA cellulosic RINs news positive for Clean Energy (CLNE) and Gevo (GEVO).
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Analyst Views on DAR
Wall Street analysts forecast DAR stock price to fall
8 Analyst Rating
8 Buy
0 Hold
0 Sell
Strong Buy
Current: 60.370
Low
45.00
Averages
51.88
High
62.00
Current: 60.370
Low
45.00
Averages
51.88
High
62.00
About DAR
Darling Ingredients Inc. is a developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, animal feed, industrial, fuel, bioenergy and fertilizer industries. Its segments include Feed Ingredients, Food Ingredients and Fuel Ingredients. The Feed Ingredients segment includes its global activities related to the collection and processing of beef, poultry and pork animal by-products in North America, Europe and South America into non-food grade oils and protein meals, and others. The Food Ingredients segment includes its global activities related to the purchase and processing of beef and pork bone chips, beef hides, pig skins, and fish skins into collagen, and others. The Fuel Ingredients segment converts fats into renewable fuels/products, organic sludge and food waste into biogas, and fallen stock into low-grade energy sources.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Multiple Companies Set to Report Earnings
- Argan, Inc. Earnings Forecast: Argan, Inc. is expected to report earnings per share of $1.99 for the quarter ending January 31, 2026, reflecting a 10.36% decrease compared to the same quarter last year, indicating volatility in its profitability despite beating expectations in two other quarters over the past year.
- Oxford Industries, Inc. Performance Outlook: Oxford Industries anticipates earnings per share of only $0.05, representing a significant 96.35% decline year-over-year, highlighting severe challenges in the competitive textile industry, although the company has exceeded expectations three times in the past year.
- Veritone, Inc. Earnings Projection: Veritone is forecasting earnings per share of -$0.10, which is a 60.00% increase from the same quarter last year, yet it failed to meet consensus expectations in the first quarter of 2025, reflecting instability in its earnings potential.
- Braskem S.A. Financial Condition: Braskem is projected to report earnings per share of -$0.98, a staggering 151.28% decrease compared to the same quarter last year, indicating ongoing difficulties in the chemical sector, and it missed consensus expectations in the fourth quarter of 2024, underscoring persistent pressure on its profitability.
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Hartree Partners Fully Exits Darling Ingredients Position
- Position Change: On February 17, 2026, Hartree Partners disclosed its complete exit from Darling Ingredients, selling 199,448 shares for approximately $6.16 million, indicating a cautious outlook on the company's future performance.
- Market Performance: Despite Darling Ingredients' stock price surging about 92% over the past year to $54.80, Hartree's exit occurred before much of this rally, suggesting they may have missed out on significant gains.
- Financial Overview: In its latest earnings report, Darling Ingredients reported fourth-quarter revenue of $1.7 billion, up from $1.4 billion a year earlier, although net income plummeted from $278.9 million in 2024 to $62.8 million, highlighting volatility in profitability.
- Strategic Consideration: Hartree Partners' exit may reflect uncertainties regarding Darling Ingredients' future profitability, especially as the CEO noted lower fat prices impacting earnings, potentially prompting them to seek more attractive investment opportunities.
See More
Warning Signs for Consumer Staples Stocks
- Overbought Signals: As of March 13, 2026, Darling Ingredients Inc (NYSE:DAR) and Adecoagro SA (NYSE:AGRO) are identified as overbought in the consumer staples sector, with RSI indicators exceeding 70, indicating potential price correction risks in the short term.
- Momentum Indicator Analysis: The RSI, a momentum indicator that compares the strength of a stock's price increases to its decreases, aids traders in assessing short-term performance, and the current overbought status may influence investor trading decisions.
- Market Warning: In the consumer staples sector, overbought signals typically suggest potential market adjustments, prompting investors to carefully evaluate holding risks to avoid potential losses.
- Industry Dynamics: As market volatility increases, investors should monitor the subsequent performance of these overbought stocks to timely adjust investment strategies and ensure asset safety.
See More
Riot Platforms and Vertiv Options Trading Activity
- Riot Options Volume: Riot Platforms Inc has seen an options trading volume of 117,366 contracts today, representing approximately 11.7 million shares, which accounts for 59.3% of its average daily trading volume over the past month, indicating heightened market interest in the stock.
- High-Frequency Contracts: Among Riot's options, the $15 strike put option is particularly active, with 10,311 contracts traded today, equating to about 1.0 million shares, reflecting investor expectations of a potential price decline in the future.
- Vertiv Options Activity: Vertiv Holdings Co recorded an options trading volume of 41,094 contracts, representing approximately 4.1 million shares, or 58.8% of its average daily trading volume over the past month, showcasing sustained market interest in the company.
- Key Contract Analysis: Within Vertiv's options, the $260 strike call option has seen significant trading, with 4,225 contracts traded today, representing about 422,500 shares, indicating that investors are optimistic about its future performance.
See More
Bullish Thesis on Darling Ingredients Inc. Highlights Growth Potential
- Market Performance: As of February 24, Darling Ingredients Inc. shares traded at $52.68, with trailing and forward P/E ratios of 135.08 and 9.48 respectively, indicating strong market performance and investment appeal.
- Business Model: Darling's effective business model converts animal byproducts into usable products across feed, food, and fuel sectors, maintaining demand under various economic conditions, thereby enhancing its defensive investment characteristics.
- Growth Catalysts: New regulations starting in 2026 will require oil companies to purchase more green fuel credits, driving demand for Darling's biofuel production and core rendering operations, potentially leading to a 30% to 70% stock price increase.
- Investment Opportunities: Investors can capitalize on structured risk/reward opportunities by selling puts at $30 and buying calls at $50–$55, aligning with the upcoming regulatory-driven growth narrative, making it an attractive investment setup.
See More
Consumer Staples Sector Overbought Warning
- Overbought Signals: As of February 27, 2026, Darling Ingredients Inc (NYSE:DAR) and Coca-Cola Consolidated Inc (NASDAQ:COKE) are flagged as overbought stocks in the consumer staples sector, with RSI indicators exceeding 70, indicating potential price correction risks in the short term, prompting caution among investors.
- RSI Indicator Insights: The Relative Strength Index (RSI), a momentum indicator that compares the strength of stock price increases to decreases, assists traders in assessing short-term performance, and an overbought condition may lead to losses for investors buying at high levels.
- Market Reaction: The emergence of overbought signals may prompt investors to reassess the investment value of these two stocks, potentially leading to short-term capital outflows that could affect overall market sentiment and price movements.
- Investment Strategy Adjustments: Given the current overbought conditions, investors may need to adjust their strategies, considering more attractive buying opportunities during price corrections to mitigate potential risks and optimize their portfolios.
See More
Multiple Companies Set to Report Earnings
- Argan, Inc. Earnings Forecast: Argan, Inc. is expected to report earnings per share of $1.99 for the quarter ending January 31, 2026, reflecting a 10.36% decrease compared to the same quarter last year, indicating volatility in its profitability despite beating expectations in two other quarters over the past year.
- Oxford Industries, Inc. Performance Outlook: Oxford Industries anticipates earnings per share of only $0.05, representing a significant 96.35% decline year-over-year, highlighting severe challenges in the competitive textile industry, although the company has exceeded expectations three times in the past year.
- Veritone, Inc. Earnings Projection: Veritone is forecasting earnings per share of -$0.10, which is a 60.00% increase from the same quarter last year, yet it failed to meet consensus expectations in the first quarter of 2025, reflecting instability in its earnings potential.
- Braskem S.A. Financial Condition: Braskem is projected to report earnings per share of -$0.98, a staggering 151.28% decrease compared to the same quarter last year, indicating ongoing difficulties in the chemical sector, and it missed consensus expectations in the fourth quarter of 2024, underscoring persistent pressure on its profitability.
See More
Hartree Partners Fully Exits Darling Ingredients Position
- Position Change: On February 17, 2026, Hartree Partners disclosed its complete exit from Darling Ingredients, selling 199,448 shares for approximately $6.16 million, indicating a cautious outlook on the company's future performance.
- Market Performance: Despite Darling Ingredients' stock price surging about 92% over the past year to $54.80, Hartree's exit occurred before much of this rally, suggesting they may have missed out on significant gains.
- Financial Overview: In its latest earnings report, Darling Ingredients reported fourth-quarter revenue of $1.7 billion, up from $1.4 billion a year earlier, although net income plummeted from $278.9 million in 2024 to $62.8 million, highlighting volatility in profitability.
- Strategic Consideration: Hartree Partners' exit may reflect uncertainties regarding Darling Ingredients' future profitability, especially as the CEO noted lower fat prices impacting earnings, potentially prompting them to seek more attractive investment opportunities.
See More
Warning Signs for Consumer Staples Stocks
- Overbought Signals: As of March 13, 2026, Darling Ingredients Inc (NYSE:DAR) and Adecoagro SA (NYSE:AGRO) are identified as overbought in the consumer staples sector, with RSI indicators exceeding 70, indicating potential price correction risks in the short term.
- Momentum Indicator Analysis: The RSI, a momentum indicator that compares the strength of a stock's price increases to its decreases, aids traders in assessing short-term performance, and the current overbought status may influence investor trading decisions.
- Market Warning: In the consumer staples sector, overbought signals typically suggest potential market adjustments, prompting investors to carefully evaluate holding risks to avoid potential losses.
- Industry Dynamics: As market volatility increases, investors should monitor the subsequent performance of these overbought stocks to timely adjust investment strategies and ensure asset safety.
See More
Riot Platforms and Vertiv Options Trading Activity
- Riot Options Volume: Riot Platforms Inc has seen an options trading volume of 117,366 contracts today, representing approximately 11.7 million shares, which accounts for 59.3% of its average daily trading volume over the past month, indicating heightened market interest in the stock.
- High-Frequency Contracts: Among Riot's options, the $15 strike put option is particularly active, with 10,311 contracts traded today, equating to about 1.0 million shares, reflecting investor expectations of a potential price decline in the future.
- Vertiv Options Activity: Vertiv Holdings Co recorded an options trading volume of 41,094 contracts, representing approximately 4.1 million shares, or 58.8% of its average daily trading volume over the past month, showcasing sustained market interest in the company.
- Key Contract Analysis: Within Vertiv's options, the $260 strike call option has seen significant trading, with 4,225 contracts traded today, representing about 422,500 shares, indicating that investors are optimistic about its future performance.
See More
Bullish Thesis on Darling Ingredients Inc. Highlights Growth Potential
- Market Performance: As of February 24, Darling Ingredients Inc. shares traded at $52.68, with trailing and forward P/E ratios of 135.08 and 9.48 respectively, indicating strong market performance and investment appeal.
- Business Model: Darling's effective business model converts animal byproducts into usable products across feed, food, and fuel sectors, maintaining demand under various economic conditions, thereby enhancing its defensive investment characteristics.
- Growth Catalysts: New regulations starting in 2026 will require oil companies to purchase more green fuel credits, driving demand for Darling's biofuel production and core rendering operations, potentially leading to a 30% to 70% stock price increase.
- Investment Opportunities: Investors can capitalize on structured risk/reward opportunities by selling puts at $30 and buying calls at $50–$55, aligning with the upcoming regulatory-driven growth narrative, making it an attractive investment setup.
See More
Consumer Staples Sector Overbought Warning
- Overbought Signals: As of February 27, 2026, Darling Ingredients Inc (NYSE:DAR) and Coca-Cola Consolidated Inc (NASDAQ:COKE) are flagged as overbought stocks in the consumer staples sector, with RSI indicators exceeding 70, indicating potential price correction risks in the short term, prompting caution among investors.
- RSI Indicator Insights: The Relative Strength Index (RSI), a momentum indicator that compares the strength of stock price increases to decreases, assists traders in assessing short-term performance, and an overbought condition may lead to losses for investors buying at high levels.
- Market Reaction: The emergence of overbought signals may prompt investors to reassess the investment value of these two stocks, potentially leading to short-term capital outflows that could affect overall market sentiment and price movements.
- Investment Strategy Adjustments: Given the current overbought conditions, investors may need to adjust their strategies, considering more attractive buying opportunities during price corrections to mitigate potential risks and optimize their portfolios.
See More
