Darden Restaurants (NYSE:DRI) Rating Reiterated by TD Cowen

Darden Restaurants (NYSE:DRI)‘s stock had its “buy” rating reiterated by investment analysts at TD Cowen in a report released on Monday, Benzinga reports. They currently have a $190.00 price target on the restaurant operator’s stock. TD Cowen’s target price indicates a potential upside of 21.87% from the stock’s previous close.

A number of other brokerages have also issued reports on DRI. Wedbush decreased their target price on shares of Darden Restaurants from $187.00 to $181.00 and set an “outperform” rating on the stock in a research report on Friday, March 22nd. Truist Financial reiterated a “buy” rating and set a $190.00 target price on shares of Darden Restaurants in a research report on Friday, March 22nd. Bank of America raised their target price on shares of Darden Restaurants from $193.00 to $198.00 and gave the stock a “buy” rating in a research report on Monday, March 18th. JPMorgan Chase & Co. increased their price target on shares of Darden Restaurants from $170.00 to $180.00 and gave the stock an “overweight” rating in a research note on Tuesday, March 19th. Finally, BMO Capital Markets boosted their price objective on shares of Darden Restaurants from $160.00 to $165.00 and gave the company a “market perform” rating in a research note on Thursday, March 7th. Five investment analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $178.85.

Darden Restaurants Stock Up 0.9 %

Darden Restaurants stock opened at $155.91 on Monday. The stock’s 50 day moving average price is $164.88 and its 200 day moving average price is $159.13. Darden Restaurants has a 1-year low of $133.36 and a 1-year high of $176.84. The company has a market cap of $18.61 billion, a PE ratio of 18.28, a price-to-earnings-growth ratio of 1.68 and a beta of 1.25. The company has a debt-to-equity ratio of 0.63, a current ratio of 0.39 and a quick ratio of 0.25.

Darden Restaurants (NYSE:DRI) last posted its quarterly earnings results on Thursday, March 21st. The restaurant operator reported $2.62 earnings per share for the quarter, missing analysts’ consensus estimates of $2.63 by ($0.01). Darden Restaurants had a return on equity of 49.94% and a net margin of 9.24%. The company had revenue of $2.97 billion for the quarter, compared to analyst estimates of $3.02 billion. During the same period last year, the company earned $2.34 earnings per share. The business’s revenue for the quarter was up 6.8% compared to the same quarter last year. On average, sell-side analysts predict that Darden Restaurants will post 8.85 EPS for the current fiscal year.

Darden Restaurants announced that its board has authorized a stock repurchase plan on Thursday, March 21st that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the restaurant operator to reacquire up to 5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other news, SVP Matthew R. Broad sold 6,831 shares of the stock in a transaction that occurred on Wednesday, January 31st. The stock was sold at an average price of $163.26, for a total transaction of $1,115,229.06. Following the sale, the senior vice president now directly owns 19,141 shares in the company, valued at approximately $3,124,959.66. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, insider Melvin John Martin sold 7,673 shares of Darden Restaurants stock in a transaction dated Wednesday, March 27th. The stock was sold at an average price of $165.52, for a total transaction of $1,270,034.96. Following the transaction, the insider now directly owns 17,208 shares of the company’s stock, valued at $2,848,268.16. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, SVP Matthew R. Broad sold 6,831 shares of the firm’s stock in a transaction dated Wednesday, January 31st. The shares were sold at an average price of $163.26, for a total transaction of $1,115,229.06. Following the transaction, the senior vice president now owns 19,141 shares of the company’s stock, valued at approximately $3,124,959.66. The disclosure for this sale can be found here. Over the last three months, insiders have sold 15,723 shares of company stock valued at $2,578,122. Company insiders own 0.85% of the company’s stock.

Hedge Funds Weigh In On Darden Restaurants

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Rise Advisors LLC boosted its position in shares of Darden Restaurants by 131.3% in the first quarter. Rise Advisors LLC now owns 155 shares of the restaurant operator’s stock worth $26,000 after buying an additional 88 shares during the period. Fortitude Family Office LLC acquired a new stake in Darden Restaurants during the 4th quarter worth about $29,000. Hartford Financial Management Inc. increased its holdings 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 period. Tennessee Valley Asset Management Partners purchased a new stake in shares of Darden Restaurants in the fourth quarter worth approximately $33,000. Finally, McGlone Suttner Wealth Management Inc. acquired a new stake in shares of Darden Restaurants during the fourth quarter worth approximately $35,000. 93.64% of the stock is currently owned by hedge funds and other institutional investors.

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.