Darden Restaurants (NYSE:DRI) PT Lowered to $180.00 at Barclays

Darden Restaurants (NYSE:DRI) had its target price cut by Barclays from $187.00 to $180.00 in a research report report published on Friday morning, Benzinga reports. They currently have an overweight rating on the restaurant operator’s stock.

A number of other analysts have also commented on the stock. TD Cowen reduced their price target on shares of Darden Restaurants from $190.00 to $170.00 and set a buy rating for the company in a research note on Thursday. BMO Capital Markets boosted their target price 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. Stephens lowered their price target on Darden Restaurants from $170.00 to $165.00 and set an equal weight rating on the stock in a report on Friday. Guggenheim lifted their price objective on Darden Restaurants from $180.00 to $185.00 and gave the stock a buy rating in a report on Tuesday, March 19th. Finally, Oppenheimer lowered their target price on Darden Restaurants from $186.00 to $182.00 and set an outperform rating on the stock in a report on Friday, March 22nd. Five investment analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of Moderate Buy and a consensus price target of $173.81.

Darden Restaurants Price Performance

DRI opened at $148.78 on Friday. Darden Restaurants has a 12-month low of $133.36 and a 12-month high of $176.84. The company has a market cap of $17.76 billion, a price-to-earnings ratio of 17.44, a price-to-earnings-growth ratio of 1.52 and a beta of 1.29. The stock has a fifty day simple moving average of $150.99 and a two-hundred day simple moving average of $159.83. The company has a current ratio of 0.39, a quick ratio of 0.25 and a debt-to-equity ratio of 0.63.

Darden Restaurants (NYSE:DRI) last issued its quarterly earnings results on Thursday, March 21st. The restaurant operator reported $2.62 EPS 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 during the quarter, compared to the consensus estimate of $3.02 billion. During the same period in the prior year, the firm earned $2.34 earnings per share. The business’s revenue for the quarter was up 6.8% compared to the same quarter last year. Research analysts predict that Darden Restaurants will post 8.85 earnings per share for the current fiscal year.

Darden Restaurants Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, May 1st. Investors of record on Wednesday, April 10th were given a $1.31 dividend. The ex-dividend date was Tuesday, April 9th. This represents a $5.24 annualized dividend and a yield of 3.52%. Darden Restaurants’s dividend payout ratio is currently 61.43%.

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

Insider Buying and Selling

In related news, SVP Matthew R. Broad sold 4,707 shares of the stock in a transaction dated Thursday, April 25th. The shares were sold at an average price of $156.15, for a total value of $734,998.05. Following the sale, 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 filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other Darden Restaurants news, Director William S. Simon sold 1,219 shares of the firm’s stock in a transaction on Monday, April 8th. The stock was sold at an average price of $158.21, for a total transaction of $192,857.99. Following the transaction, the director now directly owns 6,281 shares in the company, valued at approximately $993,717.01. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Matthew R. Broad sold 4,707 shares of the 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 transaction, the senior vice president now owns 19,179 shares in the company, valued at $2,994,800.85. The disclosure for this sale can be found here. Insiders sold a total of 13,599 shares of company stock worth $2,197,891 over the last three months. 0.85% of the stock is owned by insiders.

Hedge Funds Weigh In On Darden Restaurants

Hedge funds have recently modified their holdings of the stock. Westwood Holdings Group Inc. purchased a new position in Darden Restaurants in the 1st quarter worth $72,901,000. Ameriprise Financial Inc. boosted its position in Darden Restaurants by 55.9% in the third quarter. Ameriprise Financial Inc. now owns 1,168,604 shares of the restaurant operator’s stock valued at $167,359,000 after buying an additional 418,860 shares during the last quarter. Norges Bank acquired a new position in Darden Restaurants in the 4th quarter worth approximately $58,601,000. Invesco Ltd. increased its holdings in Darden Restaurants by 27.0% in the 3rd quarter. Invesco Ltd. now owns 1,602,543 shares of the restaurant operator’s stock worth $229,516,000 after buying an additional 340,467 shares during the period. Finally, California Public Employees Retirement System lifted its stake in Darden Restaurants by 129.6% during the 4th quarter. California Public Employees Retirement System now owns 553,721 shares of the restaurant operator’s stock valued at $90,976,000 after acquiring an additional 312,531 shares during the period. Institutional investors and hedge funds own 93.64% of the company’s stock.

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.