Palo Duro Acquires 632,050 Shares in Darling Ingredients
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 26 2026
0mins
Source: Fool
- New Investment Move: Palo Duro Investment Partners initiated a position in Darling Ingredients by acquiring 632,050 shares in Q4 2026, with an estimated transaction value of approximately $22.75 million, indicating strong confidence in the company.
- Significant Stake: This acquisition represents 6.8% of Palo Duro's reportable assets under management, highlighting its importance in the investment portfolio and potentially influencing future investment decisions.
- Strong Stock Performance: As of February 25, 2026, Darling's shares were priced at $53.08, reflecting a 34.8% increase over the past year, outperforming the S&P 500 by 19 percentage points, showcasing robust market performance.
- Growth Potential: Darling reported a 21% increase in sales and a 16% rise in adjusted EBITDA in its latest earnings report, indicating that its business model of processing animal by-products and waste streams is sustainable and profitable, attracting investor interest.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy DAR?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 55.180
Low
45.00
Averages
51.88
High
62.00
Current: 55.180
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.
Bullish Thesis on Darling Ingredients Inc. Stock
- Market Performance: As of June 2, Darling Ingredients Inc.'s stock was trading at $60.34, reflecting a robust market performance with a 67.19% appreciation over the past year, indicating strong investor confidence.
- Earnings Driver: The Fuel Ingredients segment, particularly the Diamond Green Diesel joint venture with Valero, is projected to achieve a capacity of approximately 1.2 billion gallons by 2026, driving EBITDA close to $2 billion, showcasing significant profitability potential.
- Policy Impact: The EPA's finalized Set 2 rule on March 27, 2026, will materially tighten the Renewable Fuel Standard, expected to increase RIN prices and enhance Darling's margins, especially given its low-cost production advantages.
- Valuation Upside: Under conservative valuation scenarios, Darling's stock implies a 70% upside to around $100 per share, with potential to reach $120 at historical multiples, highlighting substantial investment appeal.
See More
Darling Ingredients Secures Patent for Nextida GC Collagen Peptide
- Patent Grant: Darling Ingredients and its health brand Rousselot announced that the U.S. Patent and Trademark Office granted Patent No. US12636339 for Nextida GC, a pioneering collagen peptide ingredient aimed at supporting healthy post-meal blood sugar levels, showcasing the company's innovative capabilities in health nutrition.
- Growing Market Demand: As demand for natural, non-pharmaceutical health management solutions rises, Darling Ingredients strengthens its leadership in collagen health ingredients through Nextida GC, which is expected to drive future product line expansion and increase market share.
- International Patent Strategy: Nextida GC has secured patents in Australia, Europe, Japan, and China, with additional applications pending in Brazil, Canada, Colombia, Korea, Mexico, India, and Peru, indicating broad global recognition and potential for the product.
- Company Overview: Darling Ingredients operates over 260 facilities worldwide, processes about 15% of animal agricultural by-products, and produces approximately 30% of the world's collagen, demonstrating its strategic significance in sustainable development through a circular economy model.
See More
Wall Street Bullish on BBWI and Other Stocks Despite Concerns
- BBWI Sales Weakness: Bath and Body Works (BBWI) has experienced declining same-store sales over the past two years, with projected sales down 2.9% over the next year, indicating limited opportunities for new store openings in its core markets, which could impact future profitability.
- DAR Revenue Decline: Darling Ingredients (DAR) has seen a 3.2% annual revenue decline over the past three years, and its low gross margin of 23.8% reflects intense competition and poor unit economics, leading to a 25.6% annual contraction in earnings per share, putting pressure on stock prices.
- NESR Rising Costs: NESR's modest revenue base of $1.43 billion limits its fixed cost leverage, with a gross margin of only 12.7%, and costs have risen faster than revenue over the past five years, causing a 48.4 percentage point decline in EBITDA margin, affecting its investment capacity.
- Market Opportunity Assessment: While Wall Street's price targets suggest potential upside for these stocks, analysts express caution regarding the fundamentals of BBWI, DAR, and NESR, advising investors to consider more promising investment opportunities.
See More
Sky Quarry Signs Multi-Party MOU for Clean Fuel Innovation
- Strategic Collaboration: On May 7, 2026, Sky Quarry signed a non-binding multi-party Memorandum of Understanding with Southern Energy Renewables and DevvStream, aimed at advancing fuel innovation and low-carbon fuel development, with an initial term of three years, indicating the company's strategic positioning in the clean fuel sector.
- Integration Advantage: Sky Quarry's Foreland Refinery, the only operating refinery in Nevada, combined with its 180-million-barrel oil sands resource at PR Spring in Utah, creates a unique upstream and downstream integration capability, potentially evolving into a next-generation fuel production hub.
- Market Reaction: Within the U.S. sustainable aviation fuel investment cycle, Sky Quarry's partnership may shift market perceptions of small-cap operators, especially against the backdrop of larger competitors like Calumet and Gevo, highlighting Sky Quarry's structural advantages.
- Policy Support: The MOU coincides with a shift in U.S. federal energy policy, as the White House supports the development of domestic petroleum refining capacity, providing a favorable policy environment for Sky Quarry's integrated operations and potentially facilitating its future commercialization efforts.
See More
NYSE Issues Daily Pre-Market Advisory
- Market Advisory Issued: The New York Stock Exchange (NYSE) released a daily pre-market advisory on May 11, 2026, aimed at providing investors with market insights before trading begins, thereby assisting them in making informed trading decisions.
- Opening Celebration: At the opening bell, Eli Lilly (NYSE:LLY) celebrates its 150th anniversary, marking the company's long-standing influence and ongoing innovation in the pharmaceutical industry.
- Investor Day Event: Darling Ingredients (NYSE:DAR) showcased its long-term growth path during its Investor Day, emphasizing the company's strategic planning in sustainability and market expansion.
- Market Information Access: Investors can download the NYSE TV app to access daily market dynamics, IPO activities, and opening information, further enhancing their market engagement and information acquisition capabilities.
See More
Darling Ingredients Announces 2026 Investor Day Details
- Investor Day Announcement: Darling Ingredients will host its Investor Day on May 11, 2026, at 10 a.m. ET in New York City, with executive leadership detailing the company's strategic priorities and three-year outlook via a live webcast.
- Strategic Investment Foundation: The company has strengthened its core assets and expanded its capabilities through multi-year strategic investments, establishing a solid foundation for future growth and enhancing its competitive position in the market.
- Business Transformation: Darling has adopted a disciplined approach to execution and capital accountability, driving business transformation and ensuring returns, thereby showcasing its leadership in the industry.
- Growth Platform: The company has developed a scaled and resilient platform positioned to capitalize on long-term growth opportunities, further solidifying its market position in renewable energy and animal agricultural by-products.
See More
Bullish Thesis on Darling Ingredients Inc. Stock
- Market Performance: As of June 2, Darling Ingredients Inc.'s stock was trading at $60.34, reflecting a robust market performance with a 67.19% appreciation over the past year, indicating strong investor confidence.
- Earnings Driver: The Fuel Ingredients segment, particularly the Diamond Green Diesel joint venture with Valero, is projected to achieve a capacity of approximately 1.2 billion gallons by 2026, driving EBITDA close to $2 billion, showcasing significant profitability potential.
- Policy Impact: The EPA's finalized Set 2 rule on March 27, 2026, will materially tighten the Renewable Fuel Standard, expected to increase RIN prices and enhance Darling's margins, especially given its low-cost production advantages.
- Valuation Upside: Under conservative valuation scenarios, Darling's stock implies a 70% upside to around $100 per share, with potential to reach $120 at historical multiples, highlighting substantial investment appeal.
See More
Darling Ingredients Secures Patent for Nextida GC Collagen Peptide
- Patent Grant: Darling Ingredients and its health brand Rousselot announced that the U.S. Patent and Trademark Office granted Patent No. US12636339 for Nextida GC, a pioneering collagen peptide ingredient aimed at supporting healthy post-meal blood sugar levels, showcasing the company's innovative capabilities in health nutrition.
- Growing Market Demand: As demand for natural, non-pharmaceutical health management solutions rises, Darling Ingredients strengthens its leadership in collagen health ingredients through Nextida GC, which is expected to drive future product line expansion and increase market share.
- International Patent Strategy: Nextida GC has secured patents in Australia, Europe, Japan, and China, with additional applications pending in Brazil, Canada, Colombia, Korea, Mexico, India, and Peru, indicating broad global recognition and potential for the product.
- Company Overview: Darling Ingredients operates over 260 facilities worldwide, processes about 15% of animal agricultural by-products, and produces approximately 30% of the world's collagen, demonstrating its strategic significance in sustainable development through a circular economy model.
See More
Wall Street Bullish on BBWI and Other Stocks Despite Concerns
- BBWI Sales Weakness: Bath and Body Works (BBWI) has experienced declining same-store sales over the past two years, with projected sales down 2.9% over the next year, indicating limited opportunities for new store openings in its core markets, which could impact future profitability.
- DAR Revenue Decline: Darling Ingredients (DAR) has seen a 3.2% annual revenue decline over the past three years, and its low gross margin of 23.8% reflects intense competition and poor unit economics, leading to a 25.6% annual contraction in earnings per share, putting pressure on stock prices.
- NESR Rising Costs: NESR's modest revenue base of $1.43 billion limits its fixed cost leverage, with a gross margin of only 12.7%, and costs have risen faster than revenue over the past five years, causing a 48.4 percentage point decline in EBITDA margin, affecting its investment capacity.
- Market Opportunity Assessment: While Wall Street's price targets suggest potential upside for these stocks, analysts express caution regarding the fundamentals of BBWI, DAR, and NESR, advising investors to consider more promising investment opportunities.
See More
Sky Quarry Signs Multi-Party MOU for Clean Fuel Innovation
- Strategic Collaboration: On May 7, 2026, Sky Quarry signed a non-binding multi-party Memorandum of Understanding with Southern Energy Renewables and DevvStream, aimed at advancing fuel innovation and low-carbon fuel development, with an initial term of three years, indicating the company's strategic positioning in the clean fuel sector.
- Integration Advantage: Sky Quarry's Foreland Refinery, the only operating refinery in Nevada, combined with its 180-million-barrel oil sands resource at PR Spring in Utah, creates a unique upstream and downstream integration capability, potentially evolving into a next-generation fuel production hub.
- Market Reaction: Within the U.S. sustainable aviation fuel investment cycle, Sky Quarry's partnership may shift market perceptions of small-cap operators, especially against the backdrop of larger competitors like Calumet and Gevo, highlighting Sky Quarry's structural advantages.
- Policy Support: The MOU coincides with a shift in U.S. federal energy policy, as the White House supports the development of domestic petroleum refining capacity, providing a favorable policy environment for Sky Quarry's integrated operations and potentially facilitating its future commercialization efforts.
See More
NYSE Issues Daily Pre-Market Advisory
- Market Advisory Issued: The New York Stock Exchange (NYSE) released a daily pre-market advisory on May 11, 2026, aimed at providing investors with market insights before trading begins, thereby assisting them in making informed trading decisions.
- Opening Celebration: At the opening bell, Eli Lilly (NYSE:LLY) celebrates its 150th anniversary, marking the company's long-standing influence and ongoing innovation in the pharmaceutical industry.
- Investor Day Event: Darling Ingredients (NYSE:DAR) showcased its long-term growth path during its Investor Day, emphasizing the company's strategic planning in sustainability and market expansion.
- Market Information Access: Investors can download the NYSE TV app to access daily market dynamics, IPO activities, and opening information, further enhancing their market engagement and information acquisition capabilities.
See More
Darling Ingredients Announces 2026 Investor Day Details
- Investor Day Announcement: Darling Ingredients will host its Investor Day on May 11, 2026, at 10 a.m. ET in New York City, with executive leadership detailing the company's strategic priorities and three-year outlook via a live webcast.
- Strategic Investment Foundation: The company has strengthened its core assets and expanded its capabilities through multi-year strategic investments, establishing a solid foundation for future growth and enhancing its competitive position in the market.
- Business Transformation: Darling has adopted a disciplined approach to execution and capital accountability, driving business transformation and ensuring returns, thereby showcasing its leadership in the industry.
- Growth Platform: The company has developed a scaled and resilient platform positioned to capitalize on long-term growth opportunities, further solidifying its market position in renewable energy and animal agricultural by-products.
See More
