Darden Restaurants (NYSE:DRI) Stock Price Expected to Rise, Raymond James Financial Analyst Says

Darden Restaurants (NYSE:DRI) had its price objective raised by stock analysts at Raymond James Financial from $230.00 to $240.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage presently has an “outperform” rating on the restaurant operator’s stock. Raymond James Financial’s price objective would indicate a potential upside of 9.81% from the stock’s current price.

Other analysts have also recently issued reports about the company. UBS Group upped their price target on Darden Restaurants from $225.00 to $245.00 and gave the company a “buy” rating in a research report on Monday, June 16th. Stephens boosted their target price on shares of Darden Restaurants from $200.00 to $212.00 and gave the company an “equal weight” rating in a research note on Monday. Oppenheimer increased their target price on shares of Darden Restaurants from $230.00 to $250.00 and gave the stock an “outperform” rating in a research report on Wednesday, June 18th. Wedbush lifted their price target on shares of Darden Restaurants from $220.00 to $235.00 and gave the company an “outperform” rating in a report on Friday, March 21st. Finally, Wall Street Zen raised shares of Darden Restaurants from a “hold” rating to a “buy” rating in a research note on Saturday, May 24th. Nine equities research analysts have rated the stock with a hold rating and eighteen have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $219.27.

Darden Restaurants Stock Performance

Shares of NYSE DRI traded down $7.23 during mid-day trading on Monday, hitting $218.55. The company had a trading volume of 1,470,465 shares, compared to its average volume of 1,327,383. Darden Restaurants has a 12 month low of $135.87 and a 12 month high of $228.27. The firm has a market cap of $25.58 billion, a P/E ratio of 24.66, a PEG ratio of 2.27 and a beta of 0.75. The business’s 50-day simple moving average is $208.33 and its 200-day simple moving average is $196.31. 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 (NYSE:DRI) last announced its quarterly earnings data on Friday, June 20th. The restaurant operator reported $2.98 EPS for the quarter, topping analysts’ consensus estimates of $2.97 by $0.01. The company had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.25 billion. Darden Restaurants had a return on equity of 51.81% and a net margin of 8.69%. The company’s quarterly revenue was up 10.6% on a year-over-year basis. During the same quarter last year, the company earned $2.65 EPS. As a group, analysts predict that Darden Restaurants will post 9.52 earnings per share 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 buyback $1.00 billion in outstanding shares. This buyback authorization permits the restaurant operator to reacquire up to 3.8% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling at Darden Restaurants

In other Darden Restaurants news, insider Laura B. Williamson sold 2,289 shares of the stock in a transaction dated Wednesday, March 26th. The stock was sold at an average price of $207.26, for a total transaction of $474,418.14. Following the completion of the transaction, the insider now owns 10,056 shares in the company, valued at approximately $2,084,206.56. This represents a 18.54% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.58% of the company’s stock.

Institutional Investors Weigh In On Darden Restaurants

A number of hedge funds and other institutional investors have recently bought and sold shares of DRI. Charles Schwab Investment Management Inc. grew its stake in Darden Restaurants by 6.6% in the first quarter. Charles Schwab Investment Management Inc. now owns 3,998,200 shares of the restaurant operator’s stock valued at $830,666,000 after purchasing an additional 247,542 shares in the last quarter. Raymond James Financial Inc. grew its stake in shares of Darden Restaurants by 4.6% in the first quarter. Raymond James Financial Inc. now owns 3,601,340 shares of the restaurant operator’s stock valued at $748,215,000 after buying an additional 157,305 shares in the last quarter. Geode Capital Management LLC increased its holdings in Darden Restaurants by 1.4% during the fourth quarter. Geode Capital Management LLC now owns 2,845,302 shares of the restaurant operator’s stock worth $530,121,000 after buying an additional 39,189 shares during the last quarter. Earnest Partners LLC increased its holdings in Darden Restaurants by 0.3% during the fourth quarter. Earnest Partners LLC now owns 1,609,329 shares of the restaurant operator’s stock worth $300,446,000 after buying an additional 4,454 shares during the last quarter. Finally, Northern Trust Corp raised its position in Darden Restaurants by 12.3% during the fourth quarter. Northern Trust Corp now owns 1,441,518 shares of the restaurant operator’s stock worth $269,117,000 after acquiring an additional 158,168 shares in the last quarter. Institutional investors and hedge funds own 93.64% of the company’s stock.

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.