Darden Restaurants, Inc. (NYSE:DRI) Given Average Rating of “Moderate Buy” by Analysts

Darden Restaurants, Inc. (NYSE:DRI) has been assigned an average rating of “Moderate Buy” from the twenty-eight ratings firms that are currently covering the company, MarketBeat.com reports. Ten equities research analysts have rated the stock with a hold recommendation and eighteen have given a buy recommendation to the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $225.9630.

A number of analysts have recently weighed in on DRI shares. BTIG Research cut their price target on shares of Darden Restaurants from $235.00 to $225.00 and set a “buy” rating for the company in a report on Friday, September 19th. Deutsche Bank Aktiengesellschaft dropped their price objective on shares of Darden Restaurants from $239.00 to $220.00 and set a “buy” rating for the company in a research note on Friday, September 19th. Evercore ISI dropped their price objective on shares of Darden Restaurants from $245.00 to $240.00 and set an “outperform” rating for the company in a research note on Friday, September 19th. Wall Street Zen downgraded shares of Darden Restaurants from a “buy” rating to a “hold” rating in a research note on Friday, June 27th. Finally, Melius Research raised shares of Darden Restaurants to a “hold” rating in a research note on Monday, July 14th.

Darden Restaurants Stock Performance

Shares of Darden Restaurants stock opened at $193.40 on Friday. The company has a 50 day moving average of $203.05 and a 200-day moving average of $206.01. Darden Restaurants has a 1-year low of $155.18 and a 1-year high of $228.27. The company has a current ratio of 0.40, a quick ratio of 0.27 and a debt-to-equity ratio of 0.96. The company has a market cap of $22.49 billion, a PE ratio of 20.73, a price-to-earnings-growth ratio of 1.76 and a beta of 0.77.

Darden Restaurants (NYSE:DRI) last issued its quarterly earnings results on Thursday, September 18th. The restaurant operator reported $1.97 earnings per share for the quarter, missing analysts’ consensus estimates of $2.01 by ($0.04). Darden Restaurants had a return on equity of 52.35% and a net margin of 8.90%.The firm had revenue of $3.04 billion for the quarter, compared to the consensus estimate of $3.03 billion. During the same period last year, the company posted $1.75 EPS. The business’s revenue was up 10.4% on a year-over-year basis. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. As a group, equities research analysts forecast that Darden Restaurants will post 9.52 earnings per share for the current fiscal year.

Darden Restaurants Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 3rd. Investors of record on Friday, October 10th will be paid a $1.50 dividend. The ex-dividend date of this dividend is Friday, October 10th. This represents a $6.00 annualized dividend and a yield of 3.1%. Darden Restaurants’s dividend payout ratio is presently 64.31%.

Darden Restaurants declared that its Board of Directors has approved a stock buyback plan on Friday, June 20th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the restaurant operator to buy up to 3.8% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In related news, insider Laura B. Williamson sold 1,157 shares of the stock in a transaction that occurred on Wednesday, July 30th. The shares were sold at an average price of $204.70, for a total value of $236,837.90. Following the completion of the transaction, the insider owned 10,632 shares of the company’s stock, valued at $2,176,370.40. This represents a 9.81% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Over the last ninety days, insiders have sold 2,013 shares of company stock valued at $412,738. 0.49% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Darden Restaurants

Several institutional investors and hedge funds have recently added to or reduced their stakes in DRI. Twin Peaks Wealth Advisors LLC acquired a new position in Darden Restaurants in the 2nd quarter valued at approximately $26,000. Grove Bank & Trust increased its position in shares of Darden Restaurants by 171.4% during the first quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator’s stock worth $28,000 after buying an additional 84 shares during the period. True Wealth Design LLC raised its stake in Darden Restaurants by 419.2% during the second quarter. True Wealth Design LLC now owns 135 shares of the restaurant operator’s stock worth $29,000 after buying an additional 109 shares during the last quarter. Elevation Point Wealth Partners LLC bought a new position in Darden Restaurants during the second quarter worth $29,000. Finally, ORG Partners LLC lifted its holdings in Darden Restaurants by 108.8% in the first quarter. ORG Partners LLC now owns 142 shares of the restaurant operator’s stock valued at $30,000 after buying an additional 74 shares during the period. 93.64% of the stock is currently owned by institutional investors and hedge funds.

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.