A notable shift is occurring in the shareholder base of Darling Ingredients, with major institutional investors significantly expanding their positions. This accumulation coincides with a marked operational improvement at its key joint venture, Diamond Green Diesel (DGD), prompting market observers to consider whether this could provide sustained momentum for the stock.
- Institutional Activity: Universal Beteiligungs- und Servicegesellschaft mbH increased its stake by approximately 440%.
- JV Performance: Diamond Green Diesel reported a Q4 net profit of $55 million USD.
- Analyst Sentiment: The consensus rating among experts is “Moderate Buy.”
Analysts Signal Confidence Amid Operational Shift
Market experts are maintaining a constructive outlook on Darling Ingredients. The consensus rating currently stands at “Moderate Buy,” reflecting cautious optimism. This sentiment has been reinforced by recent analyst actions. In January, Jefferies raised its price target to $50 USD. Shortly after, JPMorgan initiated coverage with an “Overweight” rating and a $46 USD target. The market’s focus is now shifting to upcoming quarterly reports to assess the durability of the profitability recovery, particularly within the renewable energy segment.
Diamond Green Diesel Reports Profitable Quarter
A primary focus for investors is the performance of the Diamond Green Diesel joint venture. After a challenging fiscal 2025 that concluded with a net loss of $68 million USD, the venture’s fourth-quarter results signaled a potential turnaround. DGD recently announced a net profit of $55 million USD for the final three months of the year.
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For the same period, Darling Ingredients reported its share of DGD’s adjusted EBITDA amounted to $58 million USD. This positive development is critical for the company’s broader renewable fuels strategy, as the joint venture is considered a cornerstone of its future earnings structure.
Major Funds Expand Holdings
Recent regulatory filings reveal substantial buying activity from large, professional investors. Universal Beteiligungs- und Servicegesellschaft mbH boosted its holding in Darling Ingredients by 440.3%, bringing its total position to 59,130 shares. This pattern of accumulation is not isolated. Hantz Financial Services reported an increase of about 610%, while EverSource Wealth Advisors expanded its position by nearly 682%. These moves indicate that significant portions of the company’s equity are now held by institutional players.
The market responded to these developments with positive momentum in January. Darling Ingredients currently commands a market capitalization of approximately $7.22 billion USD.
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