Darden Restaurants (NYSE:DRI) Stock Rating Upgraded by Seaport Research Partners

Darden Restaurants (NYSE:DRI) was upgraded by research analysts at Seaport Research Partners to a “strong-buy” rating in a research report issued on Tuesday, Zacks reports.

Other equities research analysts also recently issued reports about the company. Morgan Stanley lifted their target price on Darden Restaurants from $236.00 to $255.00 and gave the stock an “overweight” rating in a report on Monday. Oppenheimer increased their price target on Darden Restaurants from $235.00 to $245.00 and gave the stock an “outperform” rating in a report on Tuesday. UBS Group reaffirmed a “buy” rating on shares of Darden Restaurants in a research report on Friday, September 11th. Weiss Ratings lowered shares of Darden Restaurants from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, July 28th. Finally, BTIG Research increased their target price on shares of Darden Restaurants from $225.00 to $235.00 and gave the stock a “buy” rating in a research note on Friday, June 26th. Eighteen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $232.00.

Darden Restaurants Price Performance

DRI stock opened at $208.57 on Tuesday. The company has a quick ratio of 0.21, a current ratio of 0.31 and a debt-to-equity ratio of 0.74. The firm has a market cap of $23.79 billion, a price-to-earnings ratio of 20.09, a PEG ratio of 1.97 and a beta of 0.60. The company’s fifty day simple moving average is $210.70 and its 200 day simple moving average is $204.65. Darden Restaurants has a 12-month low of $169.00 and a 12-month high of $229.76.

Darden Restaurants (NYSE:DRI) last posted its quarterly earnings data on Thursday, June 25th. The restaurant operator reported $3.66 earnings per share for the quarter, topping the consensus estimate of $3.63 by $0.03. The firm had revenue of $3.72 billion during the quarter, compared to analyst estimates of $3.73 billion. Darden Restaurants had a return on equity of 57.44% and a net margin of 9.13%.The business’s quarterly revenue was up 13.7% on a year-over-year basis. During the same period last year, the company posted $2.98 EPS. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. On average, analysts expect that Darden Restaurants will post 11.25 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Ricardo Cardenas sold 39,134 shares of the stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $209.06, for a total value of $8,181,354.04. Following the completion of the sale, the chief executive officer directly owned 86,146 shares of the company’s stock, valued at $18,009,682.76. This represents a 31.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Laura B. Williamson sold 1,110 shares of the firm’s stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $204.32, for a total value of $226,795.20. Following the completion of the transaction, the insider owned 10,754 shares in the company, valued at $2,197,257.28. This represents a 9.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 70,185 shares of company stock worth $14,636,984 in the last 90 days. Company insiders own 0.67% of the company’s stock.

Institutional Investors Weigh In On Darden Restaurants

A number of institutional investors and hedge funds have recently bought and sold shares of DRI. Tidal Investments LLC boosted its holdings in Darden Restaurants by 34.9% during the 2nd quarter. Tidal Investments LLC now owns 26,408 shares of the restaurant operator’s stock worth $5,440,000 after acquiring an additional 6,830 shares during the last quarter. National Pension Service grew its stake in shares of Darden Restaurants by 637.5% in the 2nd quarter. National Pension Service now owns 249,346 shares of the restaurant operator’s stock worth $51,368,000 after acquiring an additional 215,537 shares in the last quarter. WINTON GROUP Ltd purchased a new stake in shares of Darden Restaurants in the second quarter valued at about $1,355,000. Cidel Asset Management Inc. raised its holdings in shares of Darden Restaurants by 57.7% in the second quarter. Cidel Asset Management Inc. now owns 64,239 shares of the restaurant operator’s stock valued at $13,234,000 after purchasing an additional 23,502 shares during the last quarter. Finally, Plimoth Trust Co. LLC lifted its position in shares of Darden Restaurants by 1.2% during the second quarter. Plimoth Trust Co. LLC now owns 13,857 shares of the restaurant operator’s stock valued at $2,855,000 after purchasing an additional 171 shares in the last quarter. 93.64% of the stock is owned by hedge funds and other institutional investors.

Darden Restaurants News Roundup

Here are the key news stories impacting Darden Restaurants this week:

• Positive Sentiment: Oppenheimer raised its price target to $245 from $235 and reiterated an “outperform” rating, implying roughly 17.5% upside from the referenced share price. The firm cited an improving earnings trajectory and accelerating Olive Garden trends. Oppenheimer expects Darden stock to rise
• Positive Sentiment: Seaport Global initiated coverage with a “buy” rating, adding a new bullish analyst view to Darden’s investor narrative. Seaport Global initiates coverage
• Positive Sentiment: Morgan Stanley also expects DRI’s stock price to rise, reinforcing the broader analyst optimism around the restaurant operator. Morgan Stanley expects Darden stock to rise
• Positive Sentiment: Options traders are pricing in an approximately 8% potential move around the September 24 earnings release. Darden’s shares were already up 17.2% year to date in the referenced report, reflecting confidence in customer demand and operating trends. Options traders expect an 8 percent move
• Neutral Sentiment: Darden is expected to report quarterly earnings on Thursday, making the upcoming results, comparable sales and fiscal 2027 outlook the next major catalysts for DRI. Darden upcoming quarterly earnings
• Neutral Sentiment: Gordon Haskett raised its price target to $230 from $225 but maintained a “hold” rating, suggesting more limited upside than the bullish targets. Gordon Haskett adjusts Darden price target

About Darden Restaurants

Darden Restaurants, Inc (NYSE: DRI) is a full-service restaurant company headquartered in Orlando, Florida. It operates and franchises a portfolio of dining brands serving a range of cuisines, price points and occasions, with restaurants primarily located in the United States and select international markets.

Its restaurant portfolio includes Olive Garden, an Italian-American dining chain; LongHorn Steakhouse; Cheddar’s Scratch Kitchen; Yard House; The Capital Grille; Seasons 52; Bahama Breeze; Eddie V’s; Ruth’s Chris Steak House; and Chuy’s.