Darden Restaurants, Inc. (NYSE:DRI) Given Average Rating of "Moderate Buy" by Analysts

Darden Restaurants, Inc. (NYSE:DRI - Get Free Report) has been given a consensus rating of "Moderate Buy" by the twenty-five research firms that are presently covering the company, MarketBeat.com reports. Nine analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $221.04.

Several research analysts have weighed in on the stock. Robert W. Baird upped their price objective on shares of Darden Restaurants from $218.00 to $230.00 and gave the company a "neutral" rating in a research note on Monday. Guggenheim upped their price target on shares of Darden Restaurants from $205.00 to $220.00 and gave the stock a "buy" rating in a research note on Monday, March 24th. Barclays upped their price target on shares of Darden Restaurants from $235.00 to $255.00 and gave the stock an "overweight" rating in a research note on Monday. Oppenheimer upped their target price on Darden Restaurants from $230.00 to $250.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 18th. Finally, Morgan Stanley upped their target price on Darden Restaurants from $215.00 to $235.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 18th.

Institutional Trading of Darden Restaurants

Hedge funds and other institutional investors have recently bought and sold shares of the stock. First Hawaiian Bank grew its position in Darden Restaurants by 1.6% during the first quarter. First Hawaiian Bank now owns 9,006 shares of the restaurant operator's stock worth $1,871,000 after buying an additional 138 shares in the last quarter. Strs Ohio acquired a new stake in shares of Darden Restaurants during the 1st quarter worth approximately $18,906,000. Jacobi Capital Management LLC grew its holdings in shares of Darden Restaurants by 5.3% during the 1st quarter. Jacobi Capital Management LLC now owns 10,138 shares of the restaurant operator's stock worth $2,106,000 after purchasing an additional 514 shares in the last quarter. Geneos Wealth Management Inc. grew its holdings in shares of Darden Restaurants by 13.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 27,196 shares of the restaurant operator's stock worth $5,650,000 after purchasing an additional 3,218 shares in the last quarter. Finally, IFM Investors Pty Ltd grew its holdings in shares of Darden Restaurants by 2.7% during the 1st quarter. IFM Investors Pty Ltd now owns 22,444 shares of the restaurant operator's stock worth $4,663,000 after purchasing an additional 592 shares in the last quarter. 93.64% of the stock is currently owned by institutional investors and hedge funds.

Darden Restaurants Price Performance

Shares of NYSE:DRI opened at $221.12 on Wednesday. The company's fifty day moving average is $209.20 and its two-hundred day moving average is $196.84. The company has a quick ratio of 0.28, a current ratio of 0.42 and a debt-to-equity ratio of 0.92. Darden Restaurants has a 12-month low of $135.87 and a 12-month high of $228.27. The company has a market cap of $25.88 billion, a P/E ratio of 24.90, a price-to-earnings-growth ratio of 2.22 and a beta of 0.75.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its quarterly earnings results on Friday, June 20th. The restaurant operator reported $2.98 earnings per share for the quarter, beating the consensus estimate of $2.97 by $0.01. The firm had revenue of $3.27 billion for the quarter, compared to analyst estimates of $3.25 billion. Darden Restaurants had a return on equity of 51.81% and a net margin of 8.69%. Darden Restaurants's quarterly revenue was up 10.6% on a year-over-year basis. During the same period in the previous year, the firm earned $2.65 earnings per share. Equities analysts expect that Darden Restaurants will post 9.52 earnings per share for the current fiscal year.

Darden Restaurants Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 1st. Stockholders of record on Thursday, July 10th will be paid a $1.50 dividend. This is an increase from Darden Restaurants's previous quarterly dividend of $1.40. The ex-dividend date of this dividend is Thursday, July 10th. This represents a $6.00 annualized dividend and a dividend yield of 2.71%. Darden Restaurants's dividend payout ratio (DPR) is presently 63.06%.

Darden Restaurants announced that its board has initiated a stock repurchase program on Friday, June 20th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the restaurant operator to purchase up to 3.8% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

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.

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