Randall C. Stuewe, Chairman and CEO of Darling Ingredients Inc. (NYSE:DAR), recently executed significant stock sales. According to the latest SEC filing, Stuewe sold a total of 25,000 shares over two consecutive days. The transactions, executed on November 18 and 19, 2024, were carried out at prices ranging from $41.95 to $43.00 per share, resulting in a total sale value of approximately $1,049,054.
Following these transactions, Stuewe's direct ownership in the company stands at 693,848 shares. Darling Ingredients, based in Irving, Texas, is known for its operations in the fats and oils industry.
In other recent news, Darling Ingredients has reported mixed Q3 results, with net income decreasing to $16.9 million from $125 million year-over-year, and net sales falling to $1.4 billion from $1.6 billion. Despite these challenges, the company managed to reduce its total debt by approximately $192 million, ending the quarter with $4.246 billion in total debt. The company also reported a combined adjusted EBITDA of $236.7 million in Q3 2024.
TD Cowen maintained its Hold rating on Darling Ingredients with a consistent price target of $43.00, expressing concerns about the company's ability to meet its fourth-quarter and full-year 2025 guidance. The firm also pointed out potential investor hesitation due to the upcoming election and uncertainty surrounding the 45Z tax credit, which is crucial for the company.
Looking ahead, Darling Ingredients remains optimistic for 2025, projecting improved margins and demand, with a combined EBITDA estimated to be between $1.15 billion and $1.175 billion for FY 2024. These are recent developments within the company, reflecting a cautious stance ahead of the election results and a strategic focus on debt reduction.
InvestingPro Insights
In light of CEO Randall C. Stuewe's recent stock sales, it's worth examining Darling Ingredients' current financial position and market performance. According to InvestingPro data, the company's market capitalization stands at $6.66 billion, with a P/E ratio of 25.33. This valuation comes amid a challenging period for the company, as evidenced by a revenue decline of 14.84% over the last twelve months.
Despite the revenue headwinds, Darling Ingredients maintains a solid financial foundation. An InvestingPro Tip highlights that the company's liquid assets exceed its short-term obligations, suggesting a strong liquidity position. This financial stability could provide some reassurance to investors in light of the CEO's stock sales.
Another relevant InvestingPro Tip indicates that analysts expect Darling Ingredients to remain profitable this year, despite anticipating a decline in sales. This projection of continued profitability, even in a challenging market environment, speaks to the company's resilience and operational efficiency.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 7 more tips available for Darling Ingredients. These additional tips could provide valuable context for understanding the company's current position and future prospects in the fats and oils industry.
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