Sheets Smith Wealth Management Makes New $526,000 Investment in Darden Restaurants, Inc. (NYSE:DRI)

Sheets Smith Wealth Management purchased a new position in Darden Restaurants, Inc. (NYSE:DRI) in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 3,145 shares of the restaurant operator’s stock, valued at approximately $526,000.

A number of other hedge funds have also modified their holdings of DRI. Norges Bank bought a new position in shares of Darden Restaurants in the fourth quarter worth approximately $58,601,000. California Public Employees Retirement System boosted its position in shares of Darden Restaurants by 129.6% in the fourth quarter. California Public Employees Retirement System now owns 553,721 shares of the restaurant operator’s stock worth $90,976,000 after purchasing an additional 312,531 shares during the period. AEGON ASSET MANAGEMENT UK Plc bought a new position in shares of Darden Restaurants in the fourth quarter worth approximately $45,321,000. Raymond James & Associates lifted its holdings in shares of Darden Restaurants by 11.9% in the first quarter. Raymond James & Associates now owns 2,202,711 shares of the restaurant operator’s stock worth $368,183,000 after buying an additional 234,410 shares in the last quarter. Finally, Wellington Management Group LLP lifted its holdings in shares of Darden Restaurants by 10.3% in the fourth quarter. Wellington Management Group LLP now owns 1,809,155 shares of the restaurant operator’s stock worth $297,244,000 after buying an additional 169,642 shares in the last quarter. 93.64% of the stock is currently owned by institutional investors.

Insider Activity at Darden Restaurants

In other Darden Restaurants news, SVP Matthew R. Broad sold 4,707 shares of the firm’s stock in a transaction that occurred on Thursday, April 25th. The shares were sold at an average price of $156.15, for a total transaction of $734,998.05. Following the completion of the transaction, the senior vice president now directly owns 19,179 shares of the company’s stock, valued at approximately $2,994,800.85. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 0.85% of the stock is currently owned by insiders.

Darden Restaurants Stock Up 1.4 %

Shares of NYSE:DRI traded up $2.05 during trading on Wednesday, reaching $147.37. The stock had a trading volume of 1,170,961 shares, compared to its average volume of 1,206,328. Darden Restaurants, Inc. has a one year low of $133.36 and a one year high of $176.84. The company has a market capitalization of $17.59 billion, a P/E ratio of 17.37, a PEG ratio of 1.64 and a beta of 1.29. The company has a current ratio of 0.38, a quick ratio of 0.24 and a debt-to-equity ratio of 0.61. The firm’s 50-day simple moving average is $148.50 and its 200 day simple moving average is $157.65.

Darden Restaurants (NYSE:DRI) last announced its quarterly earnings data on Thursday, June 20th. The restaurant operator reported $2.65 EPS for the quarter, beating the consensus estimate of $2.61 by $0.04. The firm had revenue of $3 billion during the quarter, compared to analyst estimates of $2.97 billion. Darden Restaurants had a net margin of 9.02% and a return on equity of 49.82%. Darden Restaurants’s revenue was up 8.3% on a year-over-year basis. During the same period last year, the firm posted $2.58 EPS. As a group, research analysts expect that Darden Restaurants, Inc. will post 9.49 EPS for the current fiscal year.

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

Darden Restaurants Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 15th. Investors of record on Thursday, July 11th will be given a $1.29 dividend. This represents a $5.16 annualized dividend and a dividend yield of 3.50%. The ex-dividend date is Wednesday, July 10th. Darden Restaurants’s payout ratio is currently 65.73%.

Wall Street Analysts Forecast Growth

DRI has been the topic of several research analyst reports. Raymond James boosted their target price on shares of Darden Restaurants from $167.00 to $170.00 and gave the stock an “outperform” rating in a report on Friday, June 21st. Stephens reissued an “equal weight” rating and issued a $165.00 target price on shares of Darden Restaurants in a report on Thursday, June 20th. BTIG Research raised shares of Darden Restaurants from a “neutral” rating to a “buy” rating and set a $175.00 target price on the stock in a report on Friday, May 17th. Argus lowered their target price on shares of Darden Restaurants from $186.00 to $175.00 and set a “buy” rating on the stock in a report on Tuesday, June 25th. Finally, Stifel Nicolaus decreased their price target on shares of Darden Restaurants from $190.00 to $180.00 and set a “buy” rating on the stock in a research note on Friday, June 21st. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and seventeen have given a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $171.95.

About Darden Restaurants

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.