O Shaughnessy Asset Management LLC Cuts Stake in Darden Restaurants, Inc. (NYSE:DRI)

O Shaughnessy Asset Management LLC reduced its holdings in shares of Darden Restaurants, Inc. (NYSE:DRI) by 16.4% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 30,861 shares of the restaurant operator’s stock after selling 6,044 shares during the period. O Shaughnessy Asset Management LLC’s holdings in Darden Restaurants were worth $5,158,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in the business. Rise Advisors LLC increased its position in shares of Darden Restaurants by 131.3% in the 1st quarter. Rise Advisors LLC now owns 155 shares of the restaurant operator’s stock valued at $26,000 after purchasing an additional 88 shares during the last quarter. ESL Trust Services LLC purchased a new stake in shares of Darden Restaurants in the 1st quarter valued at approximately $27,000. Hartford Financial Management Inc. increased its position in shares of Darden Restaurants by 65.1% in the 4th quarter. Hartford Financial Management Inc. now owns 180 shares of the restaurant operator’s stock valued at $30,000 after purchasing an additional 71 shares during the last quarter. Tennessee Valley Asset Management Partners purchased a new stake in shares of Darden Restaurants in the 4th quarter valued at approximately $33,000. Finally, McGlone Suttner Wealth Management Inc. purchased a new position in shares of Darden Restaurants in the 4th quarter valued at $35,000. 93.64% of the stock is owned by hedge funds and other institutional investors.

Darden Restaurants Stock Performance

Shares of DRI stock traded down $3.40 during mid-day trading on Tuesday, hitting $140.20. The stock had a trading volume of 1,434,940 shares, compared to its average volume of 1,211,066. Darden Restaurants, Inc. has a fifty-two week low of $133.36 and a fifty-two week high of $176.84. The firm has a market cap of $16.73 billion, a PE ratio of 16.56, a PEG ratio of 1.70 and a beta of 1.29. The company has a debt-to-equity ratio of 0.61, a current ratio of 0.38 and a quick ratio of 0.24. The company’s 50-day simple moving average is $148.20 and its 200-day simple moving average is $157.15.

Darden Restaurants (NYSE:DRI) last announced its quarterly earnings results on Thursday, June 20th. The restaurant operator reported $2.65 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.61 by $0.04. The business had revenue of $3 billion during the quarter, compared to the consensus estimate of $2.97 billion. Darden Restaurants had a net margin of 9.02% and a return on equity of 49.82%. The business’s revenue was up 8.3% compared to the same quarter last year. During the same quarter last year, the firm posted $2.58 EPS. Sell-side analysts anticipate that Darden Restaurants, Inc. will post 9.47 earnings per share for the current year.

Darden Restaurants Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 15th. Stockholders of record on Thursday, July 11th will be issued a $1.29 dividend. The ex-dividend date is Wednesday, July 10th. This represents a $5.16 dividend on an annualized basis and a dividend yield of 3.68%. Darden Restaurants’s dividend payout ratio is presently 65.73%.

Insider Activity

In other news, SVP Matthew R. Broad sold 4,707 shares of the stock in a transaction dated Thursday, April 25th. The shares were 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 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 accessible through the SEC website. Insiders own 0.85% of the company’s stock.

Analyst Ratings Changes

DRI has been the topic of a number of recent analyst reports. Stephens reaffirmed an “equal weight” rating and issued a $165.00 target price on shares of Darden Restaurants in a research report on Friday. Bank of America increased their target price on shares of Darden Restaurants from $180.00 to $185.00 and gave the company a “buy” rating in a research report on Friday, June 21st. Stifel Nicolaus dropped their target price on shares of Darden Restaurants from $190.00 to $180.00 and set a “buy” rating on the stock in a research report on Friday, June 21st. Jefferies Financial Group cut shares of Darden Restaurants from a “hold” rating to an “underperform” rating and decreased their price target for the stock from $154.00 to $124.00 in a research note on Thursday, July 11th. Finally, JPMorgan Chase & Co. decreased their price target on shares of Darden Restaurants from $176.00 to $165.00 and set an “overweight” rating for the company in a research note on Tuesday, May 28th. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and sixteen have given a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $170.95.

Darden Restaurants 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.