Darden Restaurants (NYSE:DRI) Price Target Cut to $220.00 by Analysts at Argus

Key Points

• Argus has lowered the price target for Darden Restaurants from $260.00 to $220.00, maintaining a "buy" rating, which indicates a potential upside of 14.20% from the company's previous close.
• Darden Restaurants reported a quarterly EPS of $1.97, missing the consensus estimate of $2.01, though it achieved revenue of $3.04 billion, which was above expectations.
• The company has initiated a $1.00 billion share buyback plan, allowing it to repurchase up to 3.8% of its stock, signaling confidence in its undervalued status.

Darden Restaurants (NYSE:DRI - Get Free Report) had its price target reduced by Argus from $260.00 to $220.00 in a report released on Friday,Benzinga reports. The firm currently has a "buy" rating on the restaurant operator's stock. Argus' target price would suggest a potential upside of 19.03% from the stock's previous close.

DRI has been the subject of a number of other reports. TD Cowen reaffirmed a "hold" rating and set a $235.00 target price on shares of Darden Restaurants in a research report on Thursday. Citigroup lifted their target price on Darden Restaurants from $245.00 to $253.00 and gave the company a "buy" rating in a research report on Monday, June 23rd. BTIG Research lowered their target price on Darden Restaurants from $235.00 to $225.00 and set a "buy" rating for the company in a report on Friday. Oppenheimer upped their target price on Darden Restaurants from $230.00 to $250.00 and gave the stock an "outperform" rating in a report on Wednesday, June 18th. Finally, Melius started coverage on Darden Restaurants in a report on Monday, July 14th. They set a "hold" rating and a $240.00 target price for the company. Eighteen equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to MarketBeat.com, Darden Restaurants currently has an average rating of "Moderate Buy" and a consensus price target of $225.96.

Darden Restaurants Stock Down 4.1%

NYSE DRI traded down $7.91 on Friday, reaching $184.83. 3,334,483 shares of the stock traded hands, compared to its average volume of 1,189,895. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.28 and a current ratio of 0.40. The company has a fifty day moving average price of $206.37 and a 200-day moving average price of $206.14. The company has a market cap of $21.55 billion, a price-to-earnings ratio of 19.81, a PEG ratio of 1.69 and a beta of 0.71. Darden Restaurants has a 12 month low of $155.18 and a 12 month high of $228.27.

Darden Restaurants (NYSE:DRI - Get Free Report) last issued its earnings results on Thursday, September 18th. The restaurant operator reported $1.97 earnings per share for the quarter, missing analysts' consensus estimates of $2.01 by ($0.04). The firm had revenue of $3.04 billion for the quarter, compared to the consensus estimate of $3.03 billion. Darden Restaurants had a net margin of 8.90% and a return on equity of 52.35%. The company's revenue for the quarter was up 10.4% on a year-over-year basis. During the same period last year, the firm earned $1.75 earnings per share. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. As a group, research analysts forecast that Darden Restaurants will post 9.52 EPS for the current fiscal year.

Darden Restaurants announced that its Board of Directors has approved a stock repurchase plan on Friday, June 20th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the restaurant operator to buy up to 3.8% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

Insider Activity

In other news, insider Laura B. Williamson sold 523 shares of the stock in a transaction on Wednesday, July 30th. The stock was sold at an average price of $204.65, for a total transaction of $107,031.95. Following the completion of the sale, the insider owned 5,423 shares in the company, valued at approximately $1,109,816.95. This represents a 8.80% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Todd Burrowes sold 13,569 shares of the stock in a transaction on Monday, June 30th. The shares were sold at an average price of $216.45, for a total value of $2,937,010.05. Following the sale, the insider owned 46,327 shares of the company's stock, valued at approximately $10,027,479.15. This represents a 22.65% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 45,727 shares of company stock worth $10,022,232. Company insiders own 0.49% of the company's stock.

Institutional Trading of Darden Restaurants

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Valeo Financial Advisors LLC lifted its holdings in shares of Darden Restaurants by 11.3% during the 2nd quarter. Valeo Financial Advisors LLC now owns 1,328 shares of the restaurant operator's stock valued at $289,000 after purchasing an additional 135 shares during the last quarter. SevenBridge Financial Group LLC lifted its holdings in shares of Darden Restaurants by 56.3% during the 2nd quarter. SevenBridge Financial Group LLC now owns 9,279 shares of the restaurant operator's stock valued at $1,903,000 after purchasing an additional 3,344 shares during the last quarter. Osaic Holdings Inc. lifted its holdings in shares of Darden Restaurants by 28.9% during the 2nd quarter. Osaic Holdings Inc. now owns 42,723 shares of the restaurant operator's stock valued at $9,314,000 after purchasing an additional 9,574 shares during the last quarter. Orion Porfolio Solutions LLC lifted its holdings in shares of Darden Restaurants by 422.8% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 14,330 shares of the restaurant operator's stock valued at $3,124,000 after purchasing an additional 11,589 shares during the last quarter. Finally, Coppell Advisory Solutions LLC purchased a new position in Darden Restaurants in the 2nd quarter worth $4,235,000. 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.