Barclays Forecasts Strong Price Appreciation for Darden Restaurants (NYSE:DRI) Stock

Darden Restaurants (NYSE:DRI) had its price target hoisted by analysts at Barclays from $235.00 to $255.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage presently has an “overweight” rating on the restaurant operator’s stock. Barclays‘s target price indicates a potential upside of 17.99% from the stock’s current price.

DRI has been the topic of a number of other research reports. BMO Capital Markets raised their price objective on Darden Restaurants from $175.00 to $190.00 and gave the company a “market perform” rating in a research note on Friday, March 21st. Jefferies Financial Group raised shares of Darden Restaurants from an “underperform” rating to a “hold” rating and raised their price objective for the stock from $165.00 to $210.00 in a research note on Friday, June 13th. Oppenheimer increased their target price on Darden Restaurants from $230.00 to $250.00 and gave the company an “outperform” rating in a report on Wednesday, June 18th. TD Securities reissued a “hold” rating and issued a $215.00 price target on shares of Darden Restaurants in a report on Friday. Finally, Morgan Stanley increased their price objective on Darden Restaurants from $215.00 to $235.00 and gave the company an “overweight” rating in a research note on Wednesday, June 18th. Nine investment analysts have rated the stock with a hold rating and eighteen have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $217.19.

Darden Restaurants Stock Performance

Shares of DRI stock traded down $9.66 during trading hours on Monday, reaching $216.12. 437,808 shares of the company’s stock were exchanged, compared to its average volume of 1,323,123. The company has a debt-to-equity ratio of 0.92, a current ratio of 0.42 and a quick ratio of 0.28. Darden Restaurants has a 1 year low of $135.87 and a 1 year high of $228.27. The company has a market cap of $25.29 billion, a P/E ratio of 24.20, a price-to-earnings-growth ratio of 2.27 and a beta of 0.75. The company’s 50 day moving average is $208.33 and its two-hundred day moving average is $196.31.

Darden Restaurants (NYSE:DRI) last issued its earnings results on Friday, June 20th. The restaurant operator reported $2.98 EPS for the quarter, topping the consensus estimate of $2.97 by $0.01. Darden Restaurants had a net margin of 8.69% and a return on equity of 51.81%. The company had revenue of $3.27 billion for the quarter, compared to analyst estimates of $3.25 billion. During the same period in the previous year, the firm earned $2.65 EPS. The business’s revenue was up 10.6% on a year-over-year basis. Equities research analysts anticipate that Darden Restaurants will post 9.52 EPS for the current fiscal year.

Darden Restaurants declared that its board has authorized a stock repurchase program on Friday, June 20th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the restaurant operator to purchase up to 3.8% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Insider Transactions at Darden Restaurants

In other Darden Restaurants news, insider Laura B. Williamson sold 2,289 shares of Darden Restaurants stock in a transaction on Wednesday, March 26th. The shares were sold at an average price of $207.26, for a total transaction of $474,418.14. Following the completion of the sale, the insider now owns 10,056 shares of the company’s stock, valued at $2,084,206.56. This trade represents a 18.54% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. 0.58% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Darden Restaurants

Hedge funds have recently modified their holdings of the stock. TCTC Holdings LLC bought a new stake in Darden Restaurants in the fourth quarter worth $28,000. Grove Bank & Trust raised its holdings in Darden Restaurants by 171.4% in the 1st quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator’s stock worth $28,000 after acquiring an additional 84 shares during the period. ORG Partners LLC boosted its holdings in Darden Restaurants by 108.8% during the first quarter. ORG Partners LLC now owns 142 shares of the restaurant operator’s stock valued at $30,000 after acquiring an additional 74 shares during the period. Centennial Bank AR acquired a new stake in shares of Darden Restaurants in the first quarter valued at about $31,000. Finally, Alpine Bank Wealth Management acquired a new position in shares of Darden Restaurants during the 1st quarter worth about $34,000. 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.