Darden Restaurants (NYSE:DRI) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

Darden Restaurants (NYSE:DRI - Get Free Report) had its target price increased by analysts at JPMorgan Chase & Co. from $218.00 to $240.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage presently has an "overweight" rating on the restaurant operator's stock. JPMorgan Chase & Co.'s price objective points to a potential upside of 10.29% from the company's previous close.

A number of other brokerages have also recently issued reports on DRI. 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. Citigroup upped their price objective on Darden Restaurants from $245.00 to $253.00 and gave the company a "buy" rating in a research note on Monday. Barclays lifted their target price on shares of Darden Restaurants from $235.00 to $255.00 and gave the stock an "overweight" rating in a research report on Monday. Stephens upped their price target on shares of Darden Restaurants from $200.00 to $212.00 and gave the company an "equal weight" rating in a research report on Monday. Finally, Bank of America raised their price target on shares of Darden Restaurants from $252.00 to $253.00 and gave the company a "buy" rating in a research note on Monday. Nine analysts have rated the stock with a hold rating and eighteen have given a buy rating to the company. According to data from MarketBeat.com, Darden Restaurants currently has an average rating of "Moderate Buy" and an average target price of $221.73.

Darden Restaurants Price Performance

Shares of Darden Restaurants stock traded down $3.22 during midday trading on Wednesday, hitting $217.62. 259,156 shares of the company traded hands, compared to its average volume of 1,328,319. The firm's fifty day moving average price is $209.20 and its 200-day moving average price is $196.84. The stock has a market cap of $25.47 billion, a price-to-earnings ratio of 24.55, a PEG ratio of 2.22 and a beta of 0.75. Darden Restaurants has a 12 month low of $135.87 and a 12 month high of $228.27. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.28 and a current ratio of 0.42.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its earnings results on Friday, June 20th. The restaurant operator reported $2.98 earnings per share for the quarter, topping analysts' consensus estimates of $2.97 by $0.01. The firm had revenue of $3.27 billion for 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 company's revenue was up 10.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.65 earnings per share. As a group, sell-side analysts forecast that Darden Restaurants will post 9.52 earnings per share for the current year.

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

Hedge Funds Weigh In On Darden Restaurants

A number of large investors have recently modified their holdings of DRI. Charles Schwab Investment Management Inc. raised its holdings in shares of Darden Restaurants by 6.6% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 3,998,200 shares of the restaurant operator's stock worth $830,666,000 after acquiring an additional 247,542 shares during the last quarter. Raymond James Financial Inc. increased its holdings in Darden Restaurants by 4.6% during the 1st quarter. Raymond James Financial Inc. now owns 3,601,340 shares of the restaurant operator's stock worth $748,215,000 after purchasing an additional 157,305 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of Darden Restaurants by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 2,845,302 shares of the restaurant operator's stock worth $530,121,000 after purchasing an additional 39,189 shares during the last quarter. Earnest Partners LLC lifted its holdings in shares of Darden Restaurants by 0.3% in the fourth quarter. Earnest Partners LLC now owns 1,609,329 shares of the restaurant operator's stock valued at $300,446,000 after purchasing an additional 4,454 shares in the last quarter. Finally, Northern Trust Corp lifted its holdings in shares of Darden Restaurants by 12.3% in the fourth quarter. Northern Trust Corp now owns 1,441,518 shares of the restaurant operator's stock valued at $269,117,000 after purchasing an additional 158,168 shares in the last quarter. 93.64% of the stock is currently owned by 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.

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