More Record Highs May Be in Store for DAR

The equity already sports a 132.6% year-over-year lead

Digital Content Manager
Jan 12, 2021 at 2:53 PM
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The shares of Darling Ingredients Inc (NYSE:DAR) are up 0.5% at $66.58 at last check, just days after hitting a Jan. 8 all-time-high $67.81. What's more, the security is enjoying a 132.6% year-over-year lead, with support from the 40-day moving average. Even better, a historic bullish signal now flashing indicates even more upside for DAR in the coming weeks.

Specifically, the stock's recent peak comes amid historically low implied volatility (IV), which has been a bullish combination for the equity in the past. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, there have been at least four other times in the past five years when DAR was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) sat in the 20th percentile of its annual range or lower -- as is the case with the security's current SVI of 43.2%, which sits just below the 18th percentile of its 12-month range.

White's data shows that a month after these signals, Darling Ingredients stock was higher 75% of the time, averaging an 8.9% return. From its current perch, a similar move would put DAR just shy of the $73 mark -- an even higher record than the equity's January peak.

DAR 40 Day

Analysts are already optimistic toward Darling Ingredients stock, with four of the six in question sporting a "strong buy" rating, while the remaining two say "hold." Meanwhile, the 12-month consensus target price of $58.64 is a significant 12.3% discount to current levels. This leaves the door wide open for price-target hikes going forward, which could push the stock even higher.

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