Braun Stacey buys $19.76M stake in Darling Ingredients as institutions pile in
What's the deal? Braun Stacey AssociatesDealroom has a profile for this one. Try Dealroom → acquired a new stake in Darling IngredientsDealroom has a profile for this one. Try Dealroom → during the second quarter, buying 361,748 shares worth roughly $19,759,000, according to Holdings Channel. The Texas-based company turns animal by-products and used cooking oil into ingredients and renewable fuels.
The numbers: Shares opened at $64.35 on Friday, up 4.8%, giving DarlingDealroom has a profile for this one. Try Dealroom → a market cap of $10.15 billion. The stock trades on a P/E ratio of 17.35 and sits near its 12-month high of $69.98, well above the low of $29.15.
Why now? Darling beat expectations in its most recent quarter, reporting $2.41 in earnings per share for the period ending July 30. That result has coincided with a wave of institutional interest and analyst upgrades.
Who else is buying? Braun Stacey joins several large investors adding positions. BlackRock took a new stake worth $851,450,000 in the second quarter, Deutsche BankDealroom has a profile for this one. Try Dealroom → added $168,348,000, and Bank of AmericaDealroom has a profile for this one. Try Dealroom → bought $129,371,000. Institutions now own 94.44% of the stock.
What the analysts say: Darling holds a consensus "Moderate Buy" rating and a $69.00 target price, based on MarketBeat data. JPMorganDealroom has a profile for this one. Try Dealroom → lifted its target to $79.00 with an "overweight" rating, while both Wall Street ZenDealroom has a profile for this one. Try Dealroom → and Zacks ResearchDealroom has a profile for this one. Try Dealroom → recently upgraded the stock to "strong-buy."
Insider moves: Executives sent mixed signals. EVP Patrick McNutt sold 8,000 shares at an average $67.09 on August 14, trimming his position 18.27%. Director Charles L. Adair went the other way, buying 1,000 shares at $60.97 on July 31.
The signal: The scale of institutional buying and the cluster of upgrades point to growing conviction in Darling's renewable fuels business. With shares near record highs, the question is how much room remains above the consensus target.
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