Stifel Nicolaus Lowers Darden Restaurants (NYSE:DRI) Price Target to $180.00

Darden Restaurants (NYSE:DRI) had its target price decreased by Stifel Nicolaus from $190.00 to $180.00 in a research report released on Friday, Benzinga reports. Stifel Nicolaus currently has a buy rating on the restaurant operator’s stock.

Several other research analysts have also weighed in on the stock. TD Cowen reaffirmed a buy rating and set a $170.00 target price on shares of Darden Restaurants in a research note on Thursday, June 20th. Barclays lowered their target price on shares of Darden Restaurants from $187.00 to $180.00 and set an overweight rating for the company in a research note on Friday, June 14th. Wedbush reaffirmed an outperform rating and set a $170.00 target price on shares of Darden Restaurants in a research note on Thursday, June 20th. Citigroup lowered their target price on shares of Darden Restaurants from $192.00 to $191.00 and set a buy rating for the company in a research note on Wednesday, June 5th. Finally, Guggenheim raised their price objective on shares of Darden Restaurants from $180.00 to $185.00 and gave the company a buy rating in a research note on Tuesday, March 19th. Five investment analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of Moderate Buy and a consensus price target of $174.20.

Darden Restaurants Price Performance

Darden Restaurants stock opened at $154.13 on Friday. Darden Restaurants has a 12-month low of $133.36 and a 12-month high of $176.84. The stock has a market cap of $18.40 billion, a P/E ratio of 18.09, a PEG ratio of 1.63 and a beta of 1.29. The company has a 50-day moving average price of $150.70 and a 200 day moving average price of $159.57. The company has a current ratio of 0.38, a quick ratio of 0.25 and a debt-to-equity ratio of 0.61.

Darden Restaurants (NYSE:DRI) last released its quarterly earnings data on Thursday, June 20th. The restaurant operator reported $2.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.61 by $0.04. Darden Restaurants had a net margin of 9.02% and a return on equity of 49.82%. The firm had revenue of $3 billion during the quarter, compared to analysts’ expectations of $2.97 billion. During the same period last year, the business earned $2.58 earnings per share. Darden Restaurants’s revenue was up 8.3% compared to the same quarter last year. Sell-side analysts anticipate that Darden Restaurants will post 9.5 earnings per share for the current year.

Darden Restaurants announced that its board has authorized a share repurchase program on Thursday, March 21st that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the restaurant operator to buy up to 5% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its shares are undervalued.

Darden Restaurants Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 15th. Shareholders of record on Thursday, July 11th will be issued a dividend of $1.29 per share. The ex-dividend date of this dividend is Wednesday, July 10th. This represents a $5.16 dividend on an annualized basis and a yield of 3.35%. Darden Restaurants’s payout ratio is currently 61.50%.

Insiders Place Their Bets

In other Darden Restaurants news, insider Melvin John Martin sold 7,673 shares of the firm’s stock in a transaction that occurred on Wednesday, March 27th. The shares were sold at an average price of $165.52, for a total transaction of $1,270,034.96. Following the sale, the insider now 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 can be accessed through the SEC website. In other news, SVP Matthew R. Broad sold 4,707 shares of Darden Restaurants stock in a transaction on Thursday, April 25th. The shares were sold at an average price of $156.15, for a total value of $734,998.05. Following the transaction, the senior vice president now directly owns 19,179 shares of the company’s stock, valued at approximately $2,994,800.85. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Melvin John Martin sold 7,673 shares of Darden Restaurants stock in a transaction on Wednesday, March 27th. The shares were sold at an average price of $165.52, for a total transaction of $1,270,034.96. Following the completion of the transaction, the insider now directly owns 17,208 shares in the company, valued at $2,848,268.16. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 13,599 shares of company stock valued at $2,197,891. 0.85% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Darden Restaurants

Institutional investors have recently modified their holdings of the business. Kestra Advisory Services LLC grew its position in Darden Restaurants by 27.2% in the 3rd quarter. Kestra Advisory Services LLC now owns 13,285 shares of the restaurant operator’s stock valued at $1,903,000 after buying an additional 2,839 shares during the last quarter. Rafferty Asset Management LLC grew its position in Darden Restaurants by 6.4% in the 3rd quarter. Rafferty Asset Management LLC now owns 9,878 shares of the restaurant operator’s stock valued at $1,415,000 after buying an additional 598 shares during the last quarter. FMR LLC grew its position in Darden Restaurants by 3.6% in the 3rd quarter. FMR LLC now owns 164,249 shares of the restaurant operator’s stock valued at $23,524,000 after buying an additional 5,703 shares during the last quarter. CI Investments Inc. grew its position in Darden Restaurants by 3.0% in the 3rd quarter. CI Investments Inc. now owns 2,929 shares of the restaurant operator’s stock valued at $419,000 after buying an additional 84 shares during the last quarter. Finally, V Square Quantitative Management LLC purchased a new position in Darden Restaurants in the 3rd quarter valued at $168,000. 93.64% of the stock is owned by institutional investors and hedge funds.

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.