Irving, Texas-based Darling Ingredients (NYSE:DAR) Inc. announced on Monday that its Board of Directors has approved the extension of its share repurchase program. The program, previously set to expire, will continue for an additional two years with a refreshed aggregate amount of up to $500 million of the company's common stock, subject to market conditions.
The extension reflects the company's ongoing commitment to returning value to shareholders and confidence in its financial strength. Darling Ingredients, which operates under the Fats & Oils industry as per the Standard Industrial Classification, will repurchase shares on the New York Stock Exchange (NYSE) where its common stock is listed under the ticker symbol DAR.
The repurchase program's extension was approved on June 21, 2024, and the announcement was made in a filing with the U.S. Securities and Exchange Commission (SEC) today. The company, formerly known as Darling International Inc., has been incorporated in Delaware and has its fiscal year-end on December 28.
The repurchase plan is a common strategy employed by corporations to utilize excess cash to buy back their own shares from the marketplace, which can help increase the value of remaining shares and provide an additional return to shareholders. The decision by Darling Ingredients to extend and refresh its program to the maximum amount signals a positive outlook on its operations and future performance.
InvestingPro Insights
In light of the recent announcement by Darling Ingredients Inc. regarding the extension of its share repurchase program, it's worth noting some key financial metrics and analyst insights that could provide a broader context for investors. With a market capitalization of $5.88 billion and trading at an earnings multiple of 10.88, the company appears to be valued at a lower P/E ratio compared to some of its peers, suggesting potential undervaluation. Despite the recent sales decline, as indicated by a -7.76% revenue growth over the last twelve months as of Q1 2024, the company's gross profit margin remains robust at 23.76%.
Investors should also consider that analysts have revised their earnings downwards for the upcoming period, and a sales decline is anticipated in the current year. However, Darling Ingredients has managed to maintain profitability over the last twelve months and is expected to remain profitable this year, as per InvestingPro Tips. Additionally, the company's liquid assets exceed its short-term obligations, which could be a sign of financial stability. It is also noteworthy that the stock price has experienced a significant decline over the last three months, dropping by 21.24%, and has taken a considerable hit over the last six months with a 27.87% decrease.
For those looking to dive deeper into the financial health and future prospects of Darling Ingredients, InvestingPro offers additional insights and tips. With the use of coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to a wealth of data and analysis to inform investment decisions. Currently, there are 9 additional InvestingPro Tips available for Darling Ingredients, which can be found at https://www.investing.com/pro/DAR.
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