Darden Restaurants (NYSE:DRI) Price Target Lowered to $180.00 at Bank of America

Darden Restaurants (NYSE:DRI) had its price objective reduced by Bank of America from $194.00 to $180.00 in a report released on Thursday, Benzinga reports. They currently have a buy rating on the restaurant operator’s stock.

A number of other equities research analysts also recently issued reports on DRI. Evercore ISI decreased their price objective on Darden Restaurants from $170.00 to $165.00 and set an in-line rating on the stock in a research report on Thursday. TD Cowen reissued a buy rating and issued a $190.00 price objective on shares of Darden Restaurants in a research report on Monday, April 22nd. Stifel Nicolaus raised their price objective on Darden Restaurants from $185.00 to $190.00 and gave the stock a buy rating in a research report on Tuesday, March 19th. Citigroup lowered their price target on Darden Restaurants from $192.00 to $191.00 and set a buy rating for the company in a research report on Wednesday, June 5th. Finally, Stephens assumed coverage on Darden Restaurants in a report on Friday, April 12th. They issued an equal weight rating and a $170.00 price objective for the company. Five research analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company. According to data from MarketBeat, Darden Restaurants currently has a consensus rating of Moderate Buy and a consensus target price of $173.81.

Darden Restaurants Stock Up 0.9 %

Darden Restaurants stock opened at $148.78 on Thursday. The firm has a market cap of $17.76 billion, a price-to-earnings ratio of 17.44, a PEG 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. Darden Restaurants has a 12 month low of $133.36 and a 12 month high of $176.84. 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 announced its quarterly earnings data on Thursday, March 21st. The restaurant operator reported $2.62 EPS for the quarter, missing the consensus estimate of $2.63 by ($0.01). Darden Restaurants had a net margin of 9.24% and a return on equity of 49.94%. The business had revenue of $2.97 billion during the quarter, compared to analysts’ expectations of $3.02 billion. During the same quarter in the previous year, the firm earned $2.34 earnings per share. Darden Restaurants’s revenue was up 6.8% on a year-over-year basis. Equities analysts predict that Darden Restaurants will post 8.85 EPS for the current fiscal year.

Darden Restaurants declared that its board has approved a share repurchase plan on Thursday, March 21st that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the restaurant operator to repurchase up to 5% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board believes its stock is undervalued.

Darden Restaurants Dividend Announcement

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

Insider Activity at Darden Restaurants

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

Hedge Funds Weigh In On Darden Restaurants

Several large investors have recently bought and sold shares of the business. Rise Advisors LLC grew its holdings in shares of Darden Restaurants by 131.3% during the first quarter. Rise Advisors LLC now owns 155 shares of the restaurant operator’s stock worth $26,000 after purchasing an additional 88 shares during the last quarter. ESL Trust Services LLC acquired a new position in Darden Restaurants during the first quarter worth about $27,000. Fortitude Family Office LLC acquired a new position in Darden Restaurants during the fourth quarter worth about $29,000. Hartford Financial Management Inc. grew its position in Darden Restaurants by 65.1% during the fourth quarter. Hartford Financial Management Inc. now owns 180 shares of the restaurant operator’s stock worth $30,000 after buying an additional 71 shares during the period. Finally, Tennessee Valley Asset Management Partners acquired a new position in Darden Restaurants during the fourth quarter worth about $33,000. Hedge funds and other institutional investors 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.