Darden Restaurants (NYSE:DRI) Lifted to “Buy” at BTIG Research

BTIG Research upgraded shares of Darden Restaurants (NYSE:DRI) from a neutral rating to a buy rating in a report issued on Friday, MarketBeat.com reports. They currently have $175.00 price target on the restaurant operator’s stock.

Other equities research analysts have also issued reports about the company. Morgan Stanley cut their target price on Darden Restaurants from $184.00 to $180.00 and set an overweight rating on the stock in a research report on Friday, March 22nd. Oppenheimer decreased their target price on shares of Darden Restaurants from $186.00 to $182.00 and set an outperform rating for the company in a report on Friday, March 22nd. BMO Capital Markets lifted their target price on shares of Darden Restaurants from $160.00 to $165.00 and gave the stock a market perform rating in a research report on Thursday, March 7th. Citigroup reduced their price target on shares of Darden Restaurants from $200.00 to $192.00 and set a buy rating for the company in a research report on Friday, March 22nd. Finally, TD Cowen reiterated a buy rating and set a $190.00 price objective on shares of Darden Restaurants in a research report on Monday, April 22nd. Five equities research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of Moderate Buy and an average target price of $178.67.

Darden Restaurants Stock Performance

Shares of DRI opened at $151.98 on Friday. The firm has a market capitalization of $18.14 billion, a PE ratio of 17.82, a P/E/G ratio of 1.69 and a beta of 1.27. The company has a quick ratio of 0.25, a current ratio of 0.39 and a debt-to-equity ratio of 0.63. The firm has a 50-day moving average price of $158.10 and a 200 day moving average price of $160.50. Darden Restaurants has a 52-week low of $133.36 and a 52-week high of $176.84.

Darden Restaurants (NYSE:DRI) last released its earnings results on Thursday, March 21st. The restaurant operator reported $2.62 earnings per share for the quarter, missing analysts’ consensus estimates of $2.63 by ($0.01). Darden Restaurants had a return on equity of 49.94% and a net margin of 9.24%. The firm had revenue of $2.97 billion during the quarter, compared to analyst estimates of $3.02 billion. During the same quarter last year, the company earned $2.34 earnings per share. The business’s revenue for the quarter was up 6.8% on a year-over-year basis. On average, sell-side analysts anticipate that Darden Restaurants will post 8.85 earnings per share for the current fiscal year.

Darden Restaurants announced that its board has authorized a share repurchase plan on Thursday, March 21st that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the restaurant operator to purchase up to 5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.

Darden Restaurants Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, May 1st. Stockholders of record on Wednesday, April 10th were given a dividend of $1.31 per share. The ex-dividend date was Tuesday, April 9th. This represents a $5.24 annualized dividend and a dividend yield of 3.45%. Darden Restaurants’s dividend payout ratio (DPR) is currently 61.43%.

Insider Activity

In other Darden Restaurants news, insider Melvin John Martin sold 7,673 shares of the company’s stock in a transaction 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 sale, the insider now directly owns 17,208 shares in the company, valued at $2,848,268.16. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. In related news, Director William S. Simon sold 1,219 shares of the firm’s stock in a transaction on Monday, April 8th. The stock was sold at an average price of $158.21, for a total transaction of $192,857.99. Following the completion of the sale, the director now directly owns 6,281 shares of the company’s stock, valued at approximately $993,717.01. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Melvin John Martin sold 7,673 shares of the business’s stock in a transaction 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 disclosure for this sale can be found here. In the last ninety days, insiders have sold 13,599 shares of company stock worth $2,197,891. Company insiders own 0.85% of the company’s stock.

Institutional Trading of Darden Restaurants

Several hedge funds have recently modified their holdings of the stock. Rise Advisors LLC increased its position in Darden Restaurants by 131.3% in the first quarter. Rise Advisors LLC now owns 155 shares of the restaurant operator’s stock worth $26,000 after purchasing an additional 88 shares during the period. ESL Trust Services LLC bought a new stake in shares of Darden Restaurants during the first quarter worth approximately $27,000. Fortitude Family Office LLC acquired a new position in Darden Restaurants in the fourth quarter valued at approximately $29,000. Hartford Financial Management Inc. boosted its stake in Darden Restaurants by 65.1% in the fourth quarter. Hartford Financial Management Inc. now owns 180 shares of the restaurant operator’s stock valued at $30,000 after acquiring an additional 71 shares during the last quarter. Finally, Tennessee Valley Asset Management Partners acquired a new stake in Darden Restaurants during the 4th quarter worth $33,000. 93.64% of the stock is owned by institutional investors.

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.