Is This Biodiesel Company in Over Its Head?

By Steve Symington – Dec 12, 2013 at 10:00AM

NYSE: DAR

Darling Ingredients

Market Cap

$7B

Today's Change

(0.76%) $0.35

Current Price

$46.35

Price as of May 10, 2024, 4:00 p.m. ET

Shares of Darling International fell after a Moody's downgrade earlier this week. Here's why one Fool thinks investors shouldn't be worried.

Shares of Darling International (DAR 0.76%) plunged 4% Tuesday after Moody's downgraded the rendering and biodiesel specialist's Corporate Family Rating.

To explain the move, Moody's cited weakened credit metrics and execution risks associated with Darling's pending (and incredibly ambitious) $2.17 billion acquisition of Vion Ingredients.

However, as the Fool's Steve Symington insists in the following video, while Moody's was right to recognize the risk, investors shouldn't misinterpret its cautiousness as a reason to believe Darling has bitten off more than it can chew.

Check out the video to get Steve's full take, then feel free to weigh in regarding whether you think Darling investors should be concerned.

Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Darling International and Moody's. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.