Darden Restaurants (NYSE:DRI) Given “Outperform” Rating at Wedbush

Wedbush restated their outperform rating on shares of Darden Restaurants (NYSE:DRI) in a research note published on Thursday, Benzinga reports. Wedbush currently has a $170.00 price objective on the restaurant operator’s stock.

DRI has been the subject of several other reports. TD Cowen reduced their target price on Darden Restaurants from $190.00 to $170.00 and set a buy rating for the company in a research report on Thursday, June 13th. Barclays cut their price objective on Darden Restaurants from $187.00 to $180.00 and set an overweight rating for the company in a report on Friday, June 14th. Guggenheim lifted their price objective on Darden Restaurants from $180.00 to $185.00 and gave the company a buy rating in a report on Tuesday, March 19th. Bank of America cut their price objective on Darden Restaurants from $194.00 to $180.00 and set a buy rating for the company in a report on Thursday, June 13th. Finally, BMO Capital Markets lifted their price objective on Darden Restaurants from $160.00 to $165.00 and gave the company a market perform rating in a report on Thursday, March 7th. Five equities research analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the company. Based on data from MarketBeat, the company has an average rating of Moderate Buy and a consensus target price of $173.81.

Darden Restaurants Stock Up 1.5 %

Shares of DRI stock opened at $154.29 on Thursday. The stock has a market cap of $18.42 billion, a P/E ratio of 18.09, a price-to-earnings-growth ratio of 1.60 and a beta of 1.29. Darden Restaurants has a one year low of $133.36 and a one year high of $176.84. The stock has a fifty day moving average price of $150.70 and a 200 day moving average price of $159.73. The company has a debt-to-equity ratio of 0.63, a current ratio of 0.39 and a quick ratio of 0.25.

Darden Restaurants (NYSE:DRI) last issued its earnings results on Thursday, March 21st. The restaurant operator reported $2.62 EPS for the quarter, missing the consensus estimate of $2.63 by ($0.01). The firm had revenue of $2.97 billion during the quarter, compared to the consensus estimate of $3.02 billion. Darden Restaurants had a return on equity of 49.94% and a net margin of 9.24%. The firm’s revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period last year, the business earned $2.34 earnings per share. Analysts predict that Darden Restaurants will post 8.85 earnings per share for the current year.

Darden Restaurants Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 15th. Stockholders of record on Thursday, July 11th will be given a dividend of $1.29 per share. This represents a $5.16 annualized dividend and a dividend yield of 3.34%. Darden Restaurants’s payout ratio is currently 61.43%.

Darden Restaurants declared that its board has initiated a stock buyback program on Thursday, March 21st that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the restaurant operator to purchase up to 5% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s management believes its shares are undervalued.

Insider Transactions at Darden Restaurants

In related news, insider Melvin John Martin sold 7,673 shares of the business’s stock in a transaction that occurred on Wednesday, March 27th. The stock was sold at an average price of $165.52, for a total value of $1,270,034.96. Following the completion of the transaction, the insider now directly owns 17,208 shares in the company, valued at approximately $2,848,268.16. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In related news, SVP Matthew R. Broad sold 4,707 shares of the business’s stock in a transaction that occurred on Thursday, April 25th. The stock was sold at an average price of $156.15, for a total value of $734,998.05. Following the completion of the transaction, the senior vice president now directly owns 19,179 shares in the company, valued at approximately $2,994,800.85. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Melvin John Martin sold 7,673 shares of the business’s stock in a transaction that occurred on Wednesday, March 27th. The shares were sold at an average price of $165.52, for a total value of $1,270,034.96. Following the completion of the transaction, the insider now owns 17,208 shares of the company’s stock, valued at $2,848,268.16. The disclosure for this sale can be found here. In the last ninety days, insiders sold 13,599 shares of company stock worth $2,197,891. 0.85% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Darden Restaurants

Several institutional investors and hedge funds have recently modified their holdings of DRI. Westwood Holdings Group Inc. bought a new stake in Darden Restaurants in the 1st quarter valued at approximately $72,901,000. Ameriprise Financial Inc. lifted its stake in Darden Restaurants by 55.9% in the 3rd quarter. Ameriprise Financial Inc. now owns 1,168,604 shares of the restaurant operator’s stock valued at $167,359,000 after acquiring an additional 418,860 shares in the last quarter. Norges Bank bought a new stake in Darden Restaurants in the 4th quarter valued at approximately $58,601,000. California Public Employees Retirement System lifted its stake in Darden Restaurants by 129.6% in the 4th quarter. California Public Employees Retirement System now owns 553,721 shares of the restaurant operator’s stock valued at $90,976,000 after acquiring an additional 312,531 shares in the last quarter. Finally, AEGON ASSET MANAGEMENT UK Plc bought a new stake in Darden Restaurants in the 4th quarter valued at approximately $45,321,000. 93.64% of the stock is currently owned by institutional investors and hedge funds.

Darden Restaurants Company Profile

Darden Restaurants, Inc, together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. It operates under Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V's Prime Seafood, and Capital Burger brand names.