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. Despite short-term price fluctuations, the company's strong growth potential, favorable regulatory environment, and positive analyst sentiment make it a compelling long-term investment opportunity.
The stock shows mixed technical signals. The MACD is negatively expanding, indicating bearish momentum. However, the RSI is neutral at 64.952, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key support is at 51.425, and resistance is at 53.962. The current price is near support levels, presenting a potential entry point.
Analysts have consistently raised price targets, with many projecting significant upside (targets range from $57 to $66).
New regulations starting in 2026 are expected to drive increased demand for the company's biofuel production, potentially boosting stock prices by 30%-70%.
The company's business model is defensive, converting animal byproducts into usable products across sectors, which aligns well with long-term sustainability trends.
Insiders are selling shares, with a 139.80% increase in selling activity over the last month.
The company's Q4 financials showed a decline in net income (-44.13% YoY) and EPS (-44.44% YoY), which may concern some investors.
In Q4 2025, revenue increased by 20.60% YoY to $1.71 billion, and gross margin improved to 16.94% (up 16.83% YoY). However, net income dropped to $56.94 million (-44.13% YoY), and EPS fell to $0.35 (-44.44% YoY). While revenue growth is strong, profitability metrics have declined, likely due to higher costs or investments.
Analysts are overwhelmingly positive on DAR, with multiple firms raising price targets significantly (e.g., Jefferies to $66, Piper Sandler to $65, and Baird to $64). The consensus is that the company is well-positioned for growth in 2026, driven by improving margins, favorable regulatory outcomes, and strong operational momentum.
