Is Darling Ingredients Inc. (DAR) A Good Stock To Buy?

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Judging by the fact that Darling Ingredients Inc. (NYSE:DAR) has witnessed falling interest from the entirety of the hedge funds we track, it’s easy to see that there is a sect of hedge funds that elected to cut their full holdings in the third quarter. Intriguingly, Matt Sirovich and Jeremy Mindich’s Scopia Capital cut the largest investment of all the hedgies watched by Insider Monkey, worth about $24.2 million in stock. Ken Grossman and Glen Schneider’s fund, SG Capital Management, also dropped its stock, about $10 million worth. These transactions are important to note, as aggregate hedge fund interest dropped by 5 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Darling Ingredients Inc. (NYSE:DAR). These stocks are RSP Permian Inc (NYSE:RSPP), West Corp (NASDAQ:WSTC), OM Asset Management PLC (NYSE:OMAM), and South State Corporation (NASDAQ:SSB). This group of stocks’ market valuations resemble DAR’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RSPP 20 208298 1
WSTC 16 73353 -7
OMAM 13 99404 -1
SSB 12 78091 3

As you can see these stocks had an average of 15.25 hedge funds with bullish positions and the average amount invested in these stocks was $115 million. That figure was $430 million in DAR’s case. RSP Permian Inc (NYSE:RSPP) is the most popular stock in this table. On the other hand South State Corporation (NASDAQ:SSB) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Darling Ingredients Inc. (NYSE:DAR) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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