This Fund Dumped a $6 Million Position in Darling Ingredients. The Stock Has Surged 92% This Past Year

Core Insights - Hartree Partners has fully exited its position in Darling Ingredients, selling 199,448 shares for approximately $6.16 million [1][2] - The market capitalization of Darling Ingredients is reported at $8.7 billion, with a trailing twelve months (TTM) revenue of $6.1 billion and a net income of $62.8 million [4] - Darling Ingredients has seen its share price increase by about 92% over the past year, significantly outperforming the S&P 500's 20% gain during the same period [7] Company Overview - Darling Ingredients specializes in transforming animal by-products into specialty ingredients for various markets, including food, fuel, and industrial sectors [5][8] - The company operates a vertically integrated model, serving diverse customers in pharmaceuticals, food, pet food, feed, fuel, bioenergy, fertilizer, and environmental services [8] Recent Performance - The company reported fourth-quarter revenue of $1.7 billion, an increase from $1.4 billion year-over-year, indicating improving trends in its ingredients and renewable fuels businesses [10] - Despite the revenue growth, net income has been volatile, dropping from $278.9 million in 2024 to $62.8 million in the latest year, attributed partly to lower fat prices [11] - CEO Randall C. Stuewe highlighted solid EBITDA growth and sequential gross margin improvement as positive indicators for the company's future [11] Investment Implications - The timing of Hartree Partners' exit is notable, as it occurred before a significant rally in Darling's stock price, suggesting a potential shift in investment strategy [9][11]