Citigroup Issues Pessimistic Forecast for Darden Restaurants (NYSE:DRI) Stock Price

Darden Restaurants (NYSE:DRI) had its price target lowered by stock analysts at Citigroup from $248.00 to $247.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm currently has a “buy” rating on the restaurant operator’s stock. Citigroup’s price objective suggests a potential upside of 25.55% from the stock’s previous close.

DRI has been the subject of several other research reports. Stephens reissued an “equal weight” rating and issued a $220.00 price target on shares of Darden Restaurants in a research report on Friday. Bank of America lifted their target price on Darden Restaurants from $272.00 to $276.00 and gave the company a “buy” rating in a research note on Friday, June 5th. Weiss Ratings raised shares of Darden Restaurants from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, September 17th. BMO Capital Markets cut their price objective on shares of Darden Restaurants from $225.00 to $220.00 and set a “market perform” rating on the stock in a research report on Friday. Finally, Robert W. Baird raised shares of Darden Restaurants from a “neutral” rating to an “outperform” rating and increased their target price for the company from $220.00 to $250.00 in a research report on Monday, August 24th. Eighteen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $232.38.

Darden Restaurants Trading Down 1.5%

Shares of NYSE DRI traded down $3.01 during midday trading on Friday, hitting $196.74. The company’s stock had a trading volume of 579,839 shares, compared to its average volume of 1,340,081. Darden Restaurants has a 12-month low of $169.00 and a 12-month high of $229.76. The company has a current ratio of 0.30, a quick ratio of 0.20 and a debt-to-equity ratio of 0.79. The firm has a market cap of $22.44 billion, a P/E ratio of 19.23, a price-to-earnings-growth ratio of 1.88 and a beta of 0.60. The business’s 50 day moving average is $212.04 and its two-hundred day moving average is $204.74.

Darden Restaurants (NYSE:DRI) last released its quarterly earnings data on Thursday, September 24th. The restaurant operator reported $2.05 earnings per share (EPS) for the quarter, meeting the consensus estimate of $2.05. The company had revenue of $3.20 billion during the quarter, compared to analysts’ expectations of $3.21 billion. Darden Restaurants had a net margin of 8.85% and a return on equity of 58.64%. The firm’s quarterly revenue was up 5.1% on a year-over-year basis. During the same period in the previous year, the company earned $1.97 EPS. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. As a group, equities research analysts expect that Darden Restaurants will post 11.25 EPS for the current year.

Insider Transactions at Darden Restaurants

In other news, CFO Rajesh Vennam sold 8,478 shares of the company’s stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $210.00, for a total transaction of $1,780,380.00. Following the completion of the sale, the chief financial officer owned 8,569 shares of the company’s stock, valued at $1,799,490. This represents a 49.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Susan M. Connelly sold 2,226 shares of the firm’s stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $208.17, for a total transaction of $463,386.42. Following the completion of the transaction, the senior vice president directly owned 4,165 shares in the company, valued at $867,028.05. This trade represents a 34.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 70,185 shares of company stock worth $14,636,984 in the last ninety days. Company insiders own 0.67% of the company’s stock.

Hedge Funds Weigh In On Darden Restaurants

A number of hedge funds have recently modified their holdings of DRI. QRG Capital Management Inc. boosted its stake in shares of Darden Restaurants by 881.2% in the second quarter. QRG Capital Management Inc. now owns 47,136 shares of the restaurant operator’s stock valued at $9,710,000 after purchasing an additional 42,332 shares during the period. Envestnet Portfolio Solutions Inc. grew its position in shares of Darden Restaurants by 118.1% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 6,122 shares of the restaurant operator’s stock valued at $1,261,000 after buying an additional 3,315 shares during the last quarter. Tidal Investments LLC boosted its position in shares of Darden Restaurants by 34.9% in the 2nd quarter. Tidal Investments LLC now owns 26,408 shares of the restaurant operator’s stock valued at $5,440,000 after purchasing an additional 6,830 shares during the period. National Pension Service increased its holdings in shares of Darden Restaurants by 637.5% in the 2nd quarter. National Pension Service now owns 249,346 shares of the restaurant operator’s stock valued at $51,368,000 after acquiring an additional 215,537 shares during the period. Finally, WINTON GROUP Ltd purchased a new position in shares of Darden Restaurants during the second quarter worth about $1,355,000. 93.64% of the stock is currently owned by hedge funds and other institutional investors.

Darden Restaurants Company Profile

Darden Restaurants, Inc (NYSE: DRI) is a full-service restaurant company headquartered in Orlando, Florida. It operates and franchises a portfolio of dining brands serving a range of cuisines, price points and occasions, with restaurants primarily located in the United States and select international markets.

Its restaurant portfolio includes Olive Garden, an Italian-American dining chain; LongHorn Steakhouse; Cheddar’s Scratch Kitchen; Yard House; The Capital Grille; Seasons 52; Bahama Breeze; Eddie V’s; Ruth’s Chris Steak House; and Chuy’s.