Bank of America Forecasts Strong Price Appreciation for Darden Restaurants (NYSE:DRI) Stock

Darden Restaurants (NYSE:DRI - Get Free Report) had its price objective hoisted by equities research analysts at Bank of America from $252.00 to $253.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage presently has a "buy" rating on the restaurant operator's stock. Bank of America's price objective indicates a potential upside of 11.90% from the stock's current price.

A number of other equities analysts have also recently issued reports on the company. Morgan Stanley upped their price objective on Darden Restaurants from $215.00 to $235.00 and gave the stock an "overweight" rating in a report on Wednesday, June 18th. Robert W. Baird increased their price target on shares of Darden Restaurants from $218.00 to $230.00 and gave the company a "neutral" rating in a research report on Monday. Barclays boosted their price objective on shares of Darden Restaurants from $230.00 to $235.00 and gave the stock an "overweight" rating in a report on Friday, March 21st. TD Securities reaffirmed a "hold" rating and set a $215.00 target price on shares of Darden Restaurants in a report on Friday. Finally, Wedbush boosted their price target on shares of Darden Restaurants from $220.00 to $235.00 and gave the stock an "outperform" rating in a research note on Friday, March 21st. Nine equities research analysts have rated the stock with a hold rating and eighteen have given a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $216.42.

Darden Restaurants Stock Performance

Shares of DRI opened at $226.09 on Monday. The company has a current ratio of 0.42, a quick ratio of 0.28 and a debt-to-equity ratio of 0.92. The stock has a 50-day moving average price of $208.33 and a 200-day moving average price of $196.31. The company has a market cap of $26.46 billion, a PE ratio of 25.46, a price-to-earnings-growth ratio of 2.27 and a beta of 0.75. Darden Restaurants has a 12-month low of $135.87 and a 12-month high of $228.27.

Darden Restaurants (NYSE:DRI - Get Free Report) last released its quarterly earnings results 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 business had revenue of $3.27 billion during the quarter, compared to analysts' expectations of $3.25 billion. Darden Restaurants had a net margin of 8.69% and a return on equity of 51.81%. The business's quarterly revenue was up 10.6% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.65 EPS. As a group, equities analysts forecast that Darden Restaurants will post 9.52 earnings per share for the current fiscal year.

Darden Restaurants declared that its Board of Directors has authorized a stock repurchase plan on Friday, June 20th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the restaurant operator to repurchase up to 3.8% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

Insider Transactions at Darden Restaurants

In other Darden Restaurants news, insider Laura B. Williamson sold 2,289 shares of the firm's stock in a transaction dated 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 directly owns 10,056 shares in the company, valued at approximately $2,084,206.56. This trade represents a 18.54% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.58% of the stock is owned by insiders.

Hedge Funds Weigh In On Darden Restaurants

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Atria Wealth Solutions Inc. boosted its position in shares of Darden Restaurants by 14.2% during the fourth quarter. Atria Wealth Solutions Inc. now owns 3,659 shares of the restaurant operator's stock valued at $683,000 after buying an additional 455 shares during the last quarter. Private Advisor Group LLC lifted its stake in Darden Restaurants by 17.6% during the 4th quarter. Private Advisor Group LLC now owns 8,111 shares of the restaurant operator's stock valued at $1,514,000 after acquiring an additional 1,215 shares during the period. Concurrent Investment Advisors LLC boosted its holdings in shares of Darden Restaurants by 49.3% during the 4th quarter. Concurrent Investment Advisors LLC now owns 3,848 shares of the restaurant operator's stock valued at $718,000 after acquiring an additional 1,270 shares during the last quarter. First Horizon Advisors Inc. grew its stake in shares of Darden Restaurants by 2.5% in the fourth quarter. First Horizon Advisors Inc. now owns 2,418 shares of the restaurant operator's stock worth $451,000 after acquiring an additional 59 shares during the period. Finally, Forvis Mazars Wealth Advisors LLC grew its stake in shares of Darden Restaurants by 5.9% in the fourth quarter. Forvis Mazars Wealth Advisors LLC now owns 18,540 shares of the restaurant operator's stock worth $3,461,000 after acquiring an additional 1,028 shares during the period. 93.64% of the stock is owned by institutional investors.

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.

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