Darden Restaurants (NYSE:DRI) Reaches New 52-Week High - Should You Buy?

Darden Restaurants, Inc. (NYSE:DRI - Get Free Report) reached a new 52-week high on Monday . The stock traded as high as $215.91 and last traded at $215.33, with a volume of 406866 shares changing hands. The stock had previously closed at $214.21.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the company. Stephens raised their price target on Darden Restaurants from $175.00 to $178.00 and gave the stock an "equal weight" rating in a research report on Friday, March 21st. UBS Group raised their target price on shares of Darden Restaurants from $210.00 to $225.00 and gave the stock a "buy" rating in a report on Friday, March 21st. TD Securities upped their price target on shares of Darden Restaurants from $180.00 to $190.00 and gave the company a "hold" rating in a report on Friday, March 21st. Wall Street Zen upgraded Darden Restaurants from a "hold" rating to a "buy" rating in a research note on Saturday, May 24th. Finally, Bank of America lifted their target price on Darden Restaurants from $230.00 to $238.00 and gave the stock a "buy" rating in a research report on Friday, March 21st. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and eighteen have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $201.38.

Darden Restaurants Stock Performance

The firm has a market cap of $25.13 billion, a price-to-earnings ratio of 24.59, a P/E/G ratio of 2.15 and a beta of 0.75. The company has a debt-to-equity ratio of 1.02, a current ratio of 0.37 and a quick ratio of 0.23. The firm has a fifty day simple moving average of $202.72 and a two-hundred day simple moving average of $191.80.

Darden Restaurants (NYSE:DRI - Get Free Report) last issued its quarterly earnings results on Thursday, March 20th. The restaurant operator reported $2.80 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $2.80. Darden Restaurants had a net margin of 9.01% and a return on equity of 50.12%. The business had revenue of $3.16 billion for the quarter, compared to analyst estimates of $3.22 billion. During the same quarter in the prior year, the business posted $2.60 EPS. Darden Restaurants's revenue for the quarter was up 6.2% compared to the same quarter last year. On average, analysts expect that Darden Restaurants, Inc. will post 9.52 EPS for the current year.

Darden Restaurants Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, May 1st. Shareholders of record on Thursday, April 10th were paid a dividend of $1.40 per share. The ex-dividend date was Thursday, April 10th. This represents a $5.60 dividend on an annualized basis and a dividend yield of 2.61%. Darden Restaurants's payout ratio is currently 63.13%.

Insider Buying and Selling

In related news, insider Laura B. Williamson sold 2,289 shares of the company's stock in a transaction dated Wednesday, March 26th. The stock was sold at an average price of $207.26, for a total value of $474,418.14. Following the completion of the transaction, the insider now owns 10,056 shares of the company's stock, valued at approximately $2,084,206.56. This represents a 18.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP John W. Madonna sold 1,806 shares of the firm's stock in a transaction that occurred on Monday, March 24th. The shares were sold at an average price of $207.88, for a total value of $375,431.28. Following the completion of the sale, the senior vice president now directly owns 7,192 shares in the company, valued at approximately $1,495,072.96. The trade was a 20.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 24,613 shares of company stock valued at $5,121,492. Corporate insiders own 0.58% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Kestra Investment Management LLC purchased a new position in Darden Restaurants during the fourth quarter valued at $25,000. Grove Bank & Trust lifted its stake in Darden Restaurants by 171.4% in the 1st quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator's stock valued at $28,000 after buying an additional 84 shares in the last quarter. ORG Partners LLC boosted its holdings in Darden Restaurants by 108.8% in the 1st quarter. ORG Partners LLC now owns 142 shares of the restaurant operator's stock worth $30,000 after buying an additional 74 shares during the last quarter. Centennial Bank AR purchased a new stake in Darden Restaurants during the 1st quarter worth approximately $31,000. Finally, TCTC Holdings LLC acquired a new position in shares of Darden Restaurants during the fourth quarter valued at approximately $28,000. Hedge funds and other institutional investors own 93.64% of the company's stock.

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.