Darling Ingredients (DAR) is Well-Positioned for Significant Margin Expansion

Darling Ingredients Inc. (NYSE:DAR) is a prominent company that converts edible and inedible bio-nutrients into sustainable natural ingredients. In August 2026, the stock closed at $66.94 per share with a market capitalization of $10.56 billion. In February 2026, the company's shares increased by 5.58% within a month, and over the past 52 weeks, they rose by 110.37%.

In the second quarter of 2026, BBH Select Mid Cap ETF, an investment fund, mentioned Darling Ingredients Inc. as one of its holdings. However, the fund also noted that Guidewire Software Inc. (Guidewire) and Darling Ingredients Inc. underperformed compared to other investments. During the quarter, Darling Ingredients Inc. experienced a decline of -11.7%, reducing its weight in the fund to 4.0% after an early quarter reduction due to strength.

Darling Ingredients Inc. is a global leader in rendering animal byproducts and used cooking oil into fats and proteins for various applications, such as animal feed, specialized health products, and renewable diesel. The company formed a joint venture with Valero, known as Diamond Green Diesel (DGD). Despite lower oil prices at the end of the quarter, Darling Ingredients Inc. appears well-positioned for enhanced profitability, as government mandates finalized by the end of the first quarter 2026 will support higher margins at DGD and increased Feed prices.

These positive trends are further boosted by rising prices due to the recent conflict in the Middle East. The benefits of recent developments will become more apparent in the second quarter of 2026. However, Darling Ingredients Inc. is not among the top 40 most popular stocks among hedge funds for 2026. Although 61 hedge funds held Darling Ingredients Inc. at the end of the first quarter, 47 were part of the fund's holdings in the previous quarter.