Darden Restaurants, Inc. (NYSE:DRI) Sees Large Increase in Short Interest

Darden Restaurants, Inc. (NYSE:DRI) saw a significant increase in short interest in the month of November. As of November 15th, there was short interest totalling 6,810,000 shares, an increase of 5.7% from the October 31st total of 6,440,000 shares. Based on an average trading volume of 1,230,000 shares, the days-to-cover ratio is currently 5.5 days. Currently, 5.8% of the shares of the company are short sold.

Darden Restaurants Stock Performance

Shares of NYSE DRI traded down $0.03 during trading on Wednesday, reaching $170.74. 85,917 shares of the company traded hands, compared to its average volume of 1,214,216. The firm’s fifty day simple moving average is $164.82 and its 200 day simple moving average is $155.41. The company has a current ratio of 0.35, a quick ratio of 0.22 and a debt-to-equity ratio of 0.65. Darden Restaurants has a 12-month low of $135.87 and a 12-month high of $177.67. The stock has a market cap of $20.06 billion, a P/E ratio of 19.69, a PEG ratio of 1.98 and a beta of 1.31.

Darden Restaurants (NYSE:DRI) last issued its quarterly earnings results on Thursday, September 19th. The restaurant operator reported $1.75 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.83 by ($0.08). The firm had revenue of $2.76 billion during the quarter, compared to analyst estimates of $2.80 billion. Darden Restaurants had a return on equity of 49.46% and a net margin of 9.11%. The business’s revenue was up 1.0% on a year-over-year basis. During the same period in the prior year, the firm earned $1.78 earnings per share. As a group, research analysts anticipate that Darden Restaurants will post 9.47 earnings per share for the current fiscal year.

Darden Restaurants Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, November 1st. Shareholders of record on Thursday, October 10th were paid a dividend of $1.40 per share. The ex-dividend date of this dividend was Thursday, October 10th. This represents a $5.60 dividend on an annualized basis and a yield of 3.28%. This is a positive change from Darden Restaurants’s previous quarterly dividend of $1.29. Darden Restaurants’s payout ratio is 64.59%.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on DRI. KeyCorp upped their price target on shares of Darden Restaurants from $170.00 to $194.00 and gave the company an “overweight” rating in a research note on Friday, September 20th. Wedbush boosted their target price on shares of Darden Restaurants from $170.00 to $200.00 and gave the company an “outperform” rating in a research note on Friday, September 20th. Bank of America increased their price objective on Darden Restaurants from $184.00 to $195.00 and gave the stock a “buy” rating in a research note on Friday, September 20th. JPMorgan Chase & Co. boosted their price target on shares of Darden Restaurants from $165.00 to $176.00 and gave the company an “overweight” rating in a report on Friday, September 20th. Finally, Piper Sandler lifted their target price on Darden Restaurants from $159.00 to $177.00 and gave the company a “neutral” rating in a research note on Friday, September 20th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and sixteen have assigned a buy rating to the company. Based on data from MarketBeat, Darden Restaurants has a consensus rating of “Moderate Buy” and a consensus price target of $180.13.

Insider Buying and Selling at Darden Restaurants

In related news, SVP Douglas J. Milanes sold 5,705 shares of the company’s stock in a transaction on Monday, September 23rd. The shares were sold at an average price of $172.04, for a total value of $981,488.20. Following the completion of the transaction, the senior vice president now owns 3,834 shares of the company’s stock, valued at approximately $659,601.36. This represents a 59.81 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, SVP Susan M. Connelly sold 3,320 shares of the company’s stock in a transaction that occurred on Tuesday, October 1st. The stock was sold at an average price of $163.43, for a total value of $542,587.60. Following the completion of the transaction, the senior vice president now owns 6,155 shares of the company’s stock, valued at $1,005,911.65. The trade was a 35.04 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 59,265 shares of company stock valued at $10,116,030. 0.58% of the stock is owned by company insiders.

Institutional Investors Weigh In On Darden Restaurants

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Meeder Asset Management Inc. acquired a new position in shares of Darden Restaurants in the 2nd quarter valued at $27,000. Wolff Wiese Magana LLC lifted its stake in Darden Restaurants by 1,690.9% in the third quarter. Wolff Wiese Magana LLC now owns 197 shares of the restaurant operator’s stock worth $32,000 after acquiring an additional 186 shares during the last quarter. Kimelman & Baird LLC purchased a new position in Darden Restaurants in the second quarter valued at $30,000. Innealta Capital LLC acquired a new stake in shares of Darden Restaurants during the 2nd quarter worth about $31,000. Finally, EverSource Wealth Advisors LLC grew its position in shares of Darden Restaurants by 34.8% in the 1st quarter. EverSource Wealth Advisors LLC now owns 279 shares of the restaurant operator’s stock valued at $43,000 after buying an additional 72 shares during the last quarter. 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.