IRVING, Texas - Darling Ingredients Inc. (NYSE: NYSE:DAR), a global leader in converting edible by-products into sustainable goods, has appointed Randy Hill as an independent director to its board, effective today. Hill will contribute to the board's sustainability and audit committees.
Randy Hill, a partner at Opportune LLP, brings a wealth of experience from his previous roles, including his time as an audit partner at KPMG. His background in financial services and advising on corporate governance, mergers and acquisitions, and complex financial matters is expected to enhance the company's financial analysis and global reporting capabilities.
Chairman and CEO Randall C. Stuewe expressed confidence in Hill's appointment, noting his extensive experience in financial services and his advisory expertise in both domestic and international company operations.
Darling Ingredients operates more than 260 facilities across over 15 countries, processing a significant portion of the world's animal agricultural by-products. The company is also a major producer of collagen and renewable energy. This strategic board appointment comes as the company continues to emphasize sustainability and responsible corporate governance in its operations.
This move is part of Darling Ingredients' ongoing efforts to strengthen its leadership team and corporate strategy. The information regarding Randy Hill's election to the board is based on a press release statement from Darling Ingredients.
In other recent news, Darling Ingredients reported robust second-quarter results, with an EBITDA of $274 million, net income of $78.9 million, and net sales totaling $1.5 billion. The company's joint venture, Diamond Green Diesel (DGD), has secured a contract to supply sustainable aviation fuel to John F. Kennedy International Airport. This significant development aligns with DGD's plans to upgrade nearly half of its 470 million gallon annual production capacity to sustainable aviation fuel by the end of 2024.
Analysts have also been active in evaluating Darling Ingredients. TD Cowen revised its price target on the company's shares to $43.00, maintaining a Hold rating, while Citi reaffirmed its Buy rating with a consistent $48.00 price target. Baird maintained its Outperform rating on the company's shares, with a steady price target of $60.00.
These assessments are based on a variety of factors, including potential legislative changes, the impact of fluctuating commodity prices, and the company's future earnings prospects. For instance, Darling Ingredients has highlighted potential earnings drivers such as California's Low Carbon Fuel Standards, federal carbon-based tax credits, and the introduction of higher margin sustainable aviation fuel.
In other company news, board member Michael E. Rescoe has retired, marking the end of his significant contributions to the company's growth and global expansion. These are all recent developments that investors in Darling Ingredients may want to keep in mind.
InvestingPro Insights
Darling Ingredients Inc. (NYSE: DAR) has made a strategic move by appointing Randy Hill to its board, aiming to bolster its sustainability efforts and financial acumen. The company's commitment to sustainable practices is mirrored in its financial health and market performance, as reflected in recent data from InvestingPro.
As of the last twelve months leading up to Q2 2024, Darling Ingredients has maintained a stable market capitalization of $5.6 billion. This financial stability is supported by a Price to Earnings (P/E) ratio of 15.13, indicating a reasonable valuation compared to earnings. However, looking ahead, analysts have flagged potential concerns, predicting a sales decline and a drop in net income for the current year. Despite these forecasts, the company's profitability remains intact, with a reported net income over the last twelve months and expectations to remain profitable this year.
InvestingPro Tips indicate that Darling Ingredients does not pay dividends, which could be a strategic decision to reinvest earnings into further growth and sustainability initiatives. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a strong liquidity position that could support its operations and strategic goals in the face of anticipated challenges.
For investors seeking a deeper dive into Darling Ingredients' financials and future outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/DAR. Among these are insights into the company's revenue growth, gross profit margins, and operational efficiency, all of which are crucial factors for evaluating the company's long-term prospects.
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