Trade-Ideas LLC identified Darling Ingredients ( DAR) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Darling Ingredients as such a stock due to the following factors:

  • DAR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.0 million.
  • DAR has traded 1.2 million shares today.
  • DAR is trading at 24.05 times the normal volume for the stock at this time of day.
  • DAR is trading at a new high 14.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on DAR:

Darling Ingredients Inc. develops, produces, and sells natural ingredients from edible and inedible bio-nutrients worldwide. It operates in three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients. DAR has a PE ratio of 17. Currently there are 3 analysts that rate Darling Ingredients a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Darling Ingredients has been 1.9 million shares per day over the past 30 days. Darling Ingredients has a market cap of $2.0 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.74 and a short float of 4% with 3.70 days to cover. Shares are down 33% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Darling Ingredients as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins, generally higher debt management risk and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 100.2% when compared to the same quarter one year prior, rising from -$52.80 million to $0.11 million.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.5%. Since the same quarter one year prior, revenues slightly dropped by 7.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The debt-to-equity ratio of 1.13 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, DAR's quick ratio is somewhat strong at 1.08, demonstrating the ability to handle short-term liquidity needs.
  • The gross profit margin for DARLING INGREDIENTS INC is rather low; currently it is at 21.74%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.01% trails that of the industry average.

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