DAR Should I Buy
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Darling Ingredients Inc (DAR) is not a strong buy for a beginner, long-term investor at this moment. While analysts have raised price targets and maintain positive ratings, the technical indicators and financial performance suggest a neutral stance. The lack of strong trading signals and recent financial challenges further support holding off on immediate investment.
The MACD is below 0 and negatively contracting, indicating bearish momentum. RSI is neutral at 47.804, and moving averages are converging, showing no clear trend. The stock is trading below the pivot level of 61.512, with support at 58.833 and resistance at 64.192. Overall, the technical indicators suggest a neutral to slightly bearish trend.
Analysts have consistently raised price targets, with the most recent targets ranging from $69 to $78, reflecting optimism about the company's future. The renewable volume obligations (RVO) clarity and improving biofuel demand are seen as tailwinds for the company.
The company's Q4 financials show a significant decline in net income (-44.13% YoY) and EPS (-44.44% YoY), despite revenue growth. Additionally, there is no recent news or significant insider or hedge fund activity to act as a catalyst. Technical indicators are not signaling a strong upward trend.
In Q4 2025, revenue grew by 20.60% YoY to $1.71 billion, but net income dropped by 44.13% YoY to $56.94 million, and EPS fell by 44.44% YoY to $0.35. Gross margin improved to 16.94%, up 16.83% YoY, but the decline in profitability is concerning.
Analysts are bullish, with multiple firms raising price targets recently. Jefferies raised the target to $73, Baird to $75, and UBS to $78. The consensus is positive, citing improving fundamentals and favorable RVO outcomes, but the stock's current performance does not yet reflect these expectations.
