Darden Restaurants (NYSE:DRI) Price Target Lowered to $225.00 at BTIG Research

Key Points

• BTIG Research has decreased its price target for Darden Restaurants (NYSE: DRI) from $235.00 to $225.00, while maintaining a "buy" rating, indicating a potential upside of 16.79% from the current stock price.
• In recent analyst reports, Wall Street Zen has downgraded Darden from a "buy" to a "hold" rating, while Citigroup has increased its target price from $245.00 to $253.00, reinforcing a "buy" rating.
• Darden Restaurants has initiated a $1 billion stock buyback program, signaling management's belief that the stock is undervalued amid mixed analyst ratings.

Darden Restaurants (NYSE:DRI - Get Free Report) had its price target cut by stock analysts at BTIG Research from $235.00 to $225.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the restaurant operator's stock. BTIG Research's price target points to a potential upside of 21.73% from the company's previous close.

Several other equities research analysts have also commented on DRI. Evercore ISI cut their target price on Darden Restaurants from $250.00 to $245.00 and set an "outperform" rating on the stock in a research report on Wednesday, September 10th. Jefferies Financial Group upgraded Darden Restaurants from an "underperform" rating to a "hold" rating and increased their price target for the stock from $165.00 to $210.00 in a report on Friday, June 13th. Morgan Stanley increased their price target on Darden Restaurants from $215.00 to $235.00 and gave the stock an "overweight" rating in a report on Wednesday, June 18th. Wall Street Zen lowered Darden Restaurants from a "buy" rating to a "hold" rating in a report on Friday, June 27th. Finally, Melius assumed coverage on Darden Restaurants in a report on Monday, July 14th. They issued a "hold" rating and a $240.00 price target on the stock. Eighteen 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, the company presently has an average rating of "Moderate Buy" and a consensus price target of $225.96.

Darden Restaurants Trading Down 4.1%

Shares of Darden Restaurants stock traded down $7.91 on Friday, hitting $184.83. 3,334,483 shares of the company's stock traded hands, compared to its average volume of 1,189,895. Darden Restaurants has a one year low of $155.18 and a one year high of $228.27. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.40 and a quick ratio of 0.28. The company has a fifty day moving average of $206.37 and a two-hundred day moving average of $206.14. The company has a market capitalization of $21.55 billion, a price-to-earnings ratio of 19.81, a price-to-earnings-growth ratio of 1.69 and a beta of 0.71.

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

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

Insider Activity at Darden Restaurants

In other Darden Restaurants news, SVP Susan M. Connelly sold 4,735 shares of the firm's stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $223.78, for a total value of $1,059,598.30. Following the completion of the sale, the senior vice president directly owned 4,602 shares of the company's stock, valued at $1,029,835.56. This trade represents a 50.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, SVP Matthew R. Broad sold 733 shares of the firm's stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $218.50, for a total value of $160,160.50. Following the completion of the transaction, the senior vice president directly owned 14,367 shares of the company's stock, valued at $3,139,189.50. The trade was a 4.85% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 45,727 shares of company stock valued at $10,022,232 in the last ninety days. Insiders own 0.49% of the company's stock.

Hedge Funds Weigh In On Darden Restaurants

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DRI. Bowman & Co S.C. boosted its holdings in Darden Restaurants by 0.5% during the second quarter. Bowman & Co S.C. now owns 9,631 shares of the restaurant operator's stock worth $2,099,000 after buying an additional 48 shares in the last quarter. Rise Advisors LLC raised its position in Darden Restaurants by 32.2% during the first quarter. Rise Advisors LLC now owns 201 shares of the restaurant operator's stock worth $42,000 after acquiring an additional 49 shares during the last quarter. Ballentine Partners LLC raised its position in Darden Restaurants by 2.5% during the second quarter. Ballentine Partners LLC now owns 1,975 shares of the restaurant operator's stock worth $430,000 after acquiring an additional 49 shares during the last quarter. GAM Holding AG raised its position in Darden Restaurants by 0.7% during the second quarter. GAM Holding AG now owns 6,975 shares of the restaurant operator's stock worth $1,520,000 after acquiring an additional 51 shares during the last quarter. Finally, SBI Securities Co. Ltd. raised its position in Darden Restaurants by 15.8% during the first quarter. SBI Securities Co. Ltd. now owns 381 shares of the restaurant operator's stock worth $79,000 after acquiring an additional 52 shares during the last quarter. 93.64% of the stock is currently owned by hedge funds and other institutional investors.

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.