San Francisco-based investment firm No Street acquired 2.25 million shares of Darling Ingredients for $69.5 million in the third quarter, representing 4.6% of their reportable assets. Despite being a significant stake, it is not among their top five holdings. No Street disclosed this new position in an SEC filing on Friday. Darling Ingredients’ stock price was $34.75 at the time, down 15.4% in the past year. The company reported increased net sales and net income in the third quarter, positioning it well for a potential recovery.

No Street’s recent investments show a pattern of targeting undervalued companies like Darling Ingredients. The company’s solid financial performance, with rising net sales and net income, along with its focus on sustainable ingredients and bio-based solutions, make it an attractive investment option. Darling Ingredients’ exposure to renewable fuels and diverse revenue streams also contribute to its potential for long-term value growth.

Read more at NASDAQ.: Why One Fund Bought $70 Milion in Darling Stock Despite a 15% Slide This Past Year