Seaport Research Partners Initiates Coverage on Darden Restaurants (NYSE:DRI)

Key Points

• Seaport Research Partners initiated coverage of Darden Restaurants with a “buy” rating and a $240 price target, implying 14.86% upside from the prior close.
• Analyst sentiment is broadly positive: Darden has 18 “buy” ratings and nine “hold” ratings, resulting in a consensus “moderate buy” rating and an average price target of $232.
• Darden recently exceeded quarterly EPS expectations and reported 13.7% year-over-year revenue growth, while insiders sold approximately $14.6 million of stock over the past three months.

Analysts at Seaport Research Partners initiated coverage on shares of Darden Restaurants (NYSE:DRI - Get Free Report) in a research note issued on Wednesday, Benzinga reports. The brokerage set a "buy" rating and a $240.00 price target on the restaurant operator's stock. Seaport Research Partners' target price points to a potential upside of 14.86% from the company's previous close.

Several other brokerages have also issued reports on DRI. Oppenheimer increased their target price on Darden Restaurants from $235.00 to $245.00 and gave the stock an "outperform" rating in a research report on Tuesday. UBS Group restated a "buy" rating on shares of Darden Restaurants in a research report on Friday. BMO Capital Markets reaffirmed a "market perform" rating on shares of Darden Restaurants in a research note on Monday, June 22nd. Guggenheim increased their price objective on Darden Restaurants from $230.00 to $235.00 and gave the stock a "buy" rating in a report on Wednesday, June 24th. Finally, KeyCorp raised their price objective on Darden Restaurants from $228.00 to $237.00 and gave the company an "overweight" rating in a research report on Thursday, August 27th. Eighteen equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat, Darden Restaurants has a consensus rating of "Moderate Buy" and an average target price of $232.00.

Darden Restaurants Stock Down 4.4%

Shares of NYSE DRI opened at $208.96 on Wednesday. The firm has a fifty day simple moving average of $210.56 and a two-hundred day simple moving average of $204.70. 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 0.31, a quick ratio of 0.21 and a debt-to-equity ratio of 0.74. The firm has a market capitalization of $23.84 billion, a PE ratio of 20.13, a price-to-earnings-growth ratio of 2.06 and a beta of 0.60.

Darden Restaurants (NYSE:DRI - Get Free Report) last announced its earnings results on Thursday, June 25th. The restaurant operator reported $3.66 earnings per share for the quarter, beating analysts' consensus estimates of $3.63 by $0.03. Darden Restaurants had a net margin of 9.13% and a return on equity of 57.44%. The firm had revenue of $3.72 billion for the quarter, compared to analyst estimates of $3.73 billion. During the same quarter in the previous year, the firm posted $2.98 EPS. The company's revenue for the quarter was up 13.7% compared to the same quarter last year. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. Equities analysts expect that Darden Restaurants will post 11.25 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Laura Williamson sold 443 shares of the firm's stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $204.89, for a total transaction of $90,766.27. Following the completion of the transaction, the insider owned 5,536 shares of the company's stock, valued at $1,134,271.04. This trade represents a 7.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Rajesh Vennam sold 8,478 shares of Darden Restaurants stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $210.00, for a total value of $1,780,380.00. Following the transaction, the chief financial officer owned 8,569 shares of the company's stock, valued at $1,799,490. The trade was a 49.73% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 70,185 shares of company stock worth $14,636,984 over the last three months. Corporate insiders own 0.67% of the company's stock.

Hedge Funds Weigh In On Darden Restaurants

A number of hedge funds have recently bought and sold shares of the company. Tidal Investments LLC raised its holdings in shares of Darden Restaurants by 34.9% during the second 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 last quarter. National Pension Service boosted its holdings in Darden Restaurants by 637.5% in the second quarter. National Pension Service now owns 249,346 shares of the restaurant operator's stock worth $51,368,000 after purchasing an additional 215,537 shares during the last quarter. WINTON GROUP Ltd bought a new stake in Darden Restaurants in the 2nd quarter worth approximately $1,355,000. Cidel Asset Management Inc. raised its stake in Darden Restaurants by 57.7% during the 2nd quarter. Cidel Asset Management Inc. now owns 64,239 shares of the restaurant operator's stock valued at $13,234,000 after buying an additional 23,502 shares during the last quarter. Finally, Plimoth Trust Co. LLC raised its stake in Darden Restaurants by 1.2% during the 2nd quarter. Plimoth Trust Co. LLC now owns 13,857 shares of the restaurant operator's stock valued at $2,855,000 after buying an additional 171 shares during the last quarter. Institutional investors own 93.64% of the company's stock.

About Darden Restaurants

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.

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