Darden Restaurants (NYSE:DRI) SVP Sells $1,094,837.40 in Stock

Key Points

• Darden Restaurants' SVP Matthew Broad sold 5,661 shares of the company at an average price of $193.40, totaling $1,094,837.40, resulting in a 28.92% decrease in his ownership.
• The company's stock has fallen 1.7%, trading at $188.31, and analysts have set new price targets ranging from $200.00 to $255.00.
• Darden Restaurants declared a quarterly dividend of $1.50 per share, representing a 3.2% yield, with an annualized dividend payout ratio of 64.31%.

Darden Restaurants, Inc. (NYSE:DRI - Get Free Report) SVP Matthew Broad sold 5,661 shares of Darden Restaurants stock in a transaction that occurred on Monday, October 6th. The stock was sold at an average price of $193.40, for a total transaction of $1,094,837.40. Following the transaction, the senior vice president owned 13,916 shares in the company, valued at approximately $2,691,354.40. The trade was a 28.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link.

Darden Restaurants Stock Down 1.7%

NYSE:DRI traded down $3.24 during trading hours on Wednesday, reaching $188.31. The company's stock had a trading volume of 743,613 shares, compared to its average volume of 1,321,431. The company has a market cap of $21.90 billion, a price-to-earnings ratio of 20.18, a price-to-earnings-growth ratio of 1.77 and a beta of 0.77. Darden Restaurants, Inc. has a one year low of $155.18 and a one year high of $228.27. The business's 50-day moving average is $202.41 and its 200-day moving average is $206.07. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.40 and a quick ratio of 0.27.

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

Darden Restaurants Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 3rd. Investors of record on Friday, October 10th will be given a $1.50 dividend. This represents a $6.00 annualized dividend and a yield of 3.2%. The ex-dividend date of this dividend is Friday, October 10th. Darden Restaurants's dividend payout ratio is 64.31%.

Darden Restaurants announced that its Board of Directors has authorized a stock buyback program on Friday, June 20th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the restaurant operator to purchase up to 3.8% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's management believes its shares are undervalued.

Analysts Set New Price Targets

Several research firms have weighed in on DRI. Barclays cut their target price on shares of Darden Restaurants from $255.00 to $230.00 and set an "overweight" rating on the stock in a report on Friday, September 19th. Stephens restated an "equal weight" rating and set a $215.00 price objective on shares of Darden Restaurants in a report on Thursday, September 18th. Robert W. Baird dropped their price objective on shares of Darden Restaurants from $230.00 to $208.00 and set a "neutral" rating on the stock in a report on Friday, September 19th. Wells Fargo & Company dropped their price objective on shares of Darden Restaurants from $225.00 to $200.00 and set an "equal weight" rating on the stock in a report on Friday, September 19th. Finally, UBS Group raised their price objective on shares of Darden Restaurants from $225.00 to $245.00 and gave the stock a "buy" rating in a report on Monday, June 16th. Nineteen analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. Based on data from MarketBeat, Darden Restaurants currently has a consensus rating of "Moderate Buy" and an average price target of $225.59.

Institutional Trading of Darden Restaurants

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Wealth Enhancement Advisory Services LLC raised its stake in Darden Restaurants by 31.8% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 15,230 shares of the restaurant operator's stock worth $3,164,000 after purchasing an additional 3,677 shares in the last quarter. Choreo LLC raised its position in shares of Darden Restaurants by 46.0% in the 1st quarter. Choreo LLC now owns 16,248 shares of the restaurant operator's stock valued at $3,376,000 after buying an additional 5,119 shares in the last quarter. Principal Financial Group Inc. raised its position in shares of Darden Restaurants by 5.1% in the 1st quarter. Principal Financial Group Inc. now owns 162,340 shares of the restaurant operator's stock valued at $33,728,000 after buying an additional 7,902 shares in the last quarter. Golden State Wealth Management LLC raised its position in shares of Darden Restaurants by 12.4% in the 1st quarter. Golden State Wealth Management LLC now owns 924 shares of the restaurant operator's stock valued at $192,000 after buying an additional 102 shares in the last quarter. Finally, GAMMA Investing LLC raised its position in shares of Darden Restaurants by 124.2% in the 1st quarter. GAMMA Investing LLC now owns 4,471 shares of the restaurant operator's stock valued at $929,000 after buying an additional 2,477 shares in the last quarter. Institutional investors own 93.64% of the company's stock.

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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