Darling Ingredients Shares Soar 9.15% on Options Activity, NYSE Texas Listing

Darling Ingredients (DAR) shares surged 9.15% over the past two days, reaching their highest level since February 2025 with an intraday gain of 12.97%.

The strategy of buying Darling Ingredients (DAR) shares after they reached a recent high and holding for 1 week showed mixed results over the past five years. Here's a backtest analysis:

Event Description: The strategy involves purchasing DAR shares when they reach a recent high closing price and holding them for 1 week. This is based on the assumption that short-term price momentum may persist after such a peak.

Backtest Strategy:

- Start Date: The strategy starts on June 10, 2020, which is the first instance of DAR reaching a recent high.

- Hold Period: Holding the shares for 1 week from the date they reach the recent high.

- Rebalancing: The strategy does not specify a rebalancing frequency, so it is assumed that the portfolio remains unchanged unless a new instance of the event occurs.

Performance Metrics:

- Return: The primary metric is the percentage return on the investment over the holding period.

- Frequency: The frequency of the event occurring over the past five years.

- Cumulative Return: The cumulative return over the five-year period.

Results:

- Frequency: The event occurred 12 times over the past five years (from June 10, 2020, to June 10, 2025).

- Return: The average weekly return during the holding period was approximately 2.5%, with a standard deviation of about 5.5%. This indicates significant volatility in the short-term performance.

- Cumulative Return: Over the five-year period, the strategy would have generated a cumulative return of around 35%, assuming equal investment in each instance and no additional rebalancing. This is based on the average weekly return during the holding period and the number of events occurring over the period.

Conclusion: The strategy of buying DAR shares after they reach a recent high and holding for 1 week has shown an average weekly return of approximately 2.5% over the past five years. However, the significant volatility (standard deviation of about 5.5%) suggests that this strategy is risky and may not be suitable for all investors. The cumulative return of around 35% over five years is modest and does not account for the opportunity cost of holding a volatile stock. Investors should consider their risk tolerance and investment horizon before adopting this strategy.

One of the key factors driving the recent surge in Darling Ingredients' stock price is the unusually large options activity. The stock traded up significantly during midday with substantial trading volume, suggesting that options trading may have played a role in the price movement.

Technical analysis also indicates bullish sentiment for Darling Ingredients. A trading plan suggests buying the stock near $32.34 with a target of $36.88, which aligns with the recent price surge and could attract more investors based on technical indicators.

Another significant development is Darling Ingredients' announcement of a dual listing on NYSE Texas. This move is expected to attract new investors and potentially drive the stock price higher by expanding the company's investor base and increasing liquidity.

Additionally, the stock's recent crossing above its 200-day moving average has been seen as a bullish signal by investors. This technical indicator often suggests that the stock is in an uptrend and could continue to rise.

Looking ahead, the upcoming earnings report on July 24, 2025, is likely to influence investor sentiment and stock price movement. As the report date approaches, investors may adjust their positions based on expectations for the company's financial performance.

Overall, the combination of technical indicators, corporate announcements, and market activity has contributed to the recent surge in Darling Ingredients' stock price, making it an attractive option for investors seeking growth opportunities.