Insider Selling: Darden Restaurants (NYSE:DRI) SVP Sells $1,094,837.40 in Stock

Darden Restaurants, Inc. (NYSE:DRI) SVP Matthew Broad sold 5,661 shares of the stock in a transaction dated Monday, October 6th. The stock was sold at an average price of $193.40, for a total transaction of $1,094,837.40. Following the sale, the senior vice president directly owned 13,916 shares in the company, valued at $2,691,354.40. This represents a 28.92% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link.

Darden Restaurants Stock Down 3.0%

Shares of DRI opened at $181.12 on Friday. The stock has a market capitalization of $21.07 billion, a PE ratio of 19.41, a P/E/G ratio of 1.71 and a beta of 0.77. Darden Restaurants, Inc. has a 1 year low of $155.90 and a 1 year high of $228.27. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.27 and a current ratio of 0.40. The company’s 50-day simple moving average is $201.35 and its 200-day simple moving average is $205.61.

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

Darden Restaurants Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Investors of record on Friday, October 10th will be issued 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 3.3%. Darden Restaurants’s dividend payout ratio (DPR) is 64.31%.

Darden Restaurants announced that its Board of Directors has authorized a stock buyback plan on Friday, June 20th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the restaurant operator to reacquire up to 3.8% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on DRI shares. Melius started coverage on shares of Darden Restaurants in a report on Monday, July 14th. They issued a “hold” rating and a $240.00 target price on the stock. JPMorgan Chase & Co. reduced their target price on shares of Darden Restaurants from $240.00 to $230.00 and set an “overweight” rating on the stock in a report on Monday, October 6th. Raymond James Financial reduced their target price on shares of Darden Restaurants from $230.00 to $210.00 and set an “outperform” rating on the stock in a report on Friday, September 19th. Deutsche Bank Aktiengesellschaft reduced their target price on shares of Darden Restaurants from $239.00 to $220.00 and set a “buy” rating on the stock in a report on Friday, September 19th. Finally, Argus dropped their price target on shares of Darden Restaurants from $260.00 to $220.00 and set a “buy” rating on the stock in a research note on Friday, September 19th. Nineteen equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $225.59.

Hedge Funds Weigh In On Darden Restaurants

Hedge funds have recently modified their holdings of the business. Twin Peaks Wealth Advisors LLC purchased a new position in shares of Darden Restaurants during the second quarter worth approximately $26,000. Grove Bank & Trust grew 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 acquiring an additional 84 shares during the last quarter. True Wealth Design LLC grew its position in Darden Restaurants by 419.2% in the 2nd quarter. True Wealth Design LLC now owns 135 shares of the restaurant operator’s stock valued at $29,000 after buying an additional 109 shares during the last quarter. Elevation Point Wealth Partners LLC purchased a new position in Darden Restaurants in the 2nd quarter valued at $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 acquiring an additional 74 shares during the period. 93.64% of the stock is currently owned by hedge funds and other institutional investors.

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.