Deutsche Bank Aktiengesellschaft Lowers Darden Restaurants (NYSE:DRI) Price Target to $220.00

Key Points

• Deutsche Bank Aktiengesellschaft has lowered its price target for Darden Restaurants from $239.00 to $220.00, while maintaining a "buy" rating on the stock, indicating a potential upside of 17.86% from the previous close.
• Despite the recent downgrade, analyst ratings remain generally positive, with a consensus target price of $224.21 and 18 analysts rating the stock as a Buy.
• Darden Restaurants recently reported a quarterly earnings miss, with earnings per share of $1.97 compared to expectations of $2.01, alongside a revenue increase of 10.4% year-over-year.

Darden Restaurants (NYSE:DRI - Get Free Report) had its price objective decreased by equities researchers at Deutsche Bank Aktiengesellschaft from $239.00 to $220.00 in a report issued on Friday,Benzinga reports. The firm currently has a "buy" rating on the restaurant operator's stock. Deutsche Bank Aktiengesellschaft's price target would suggest a potential upside of 17.86% from the stock's previous close.

Several other equities analysts also recently commented on the company. Jefferies Financial Group upgraded Darden Restaurants from an "underperform" rating to a "hold" rating and boosted their price objective for the company from $165.00 to $210.00 in a research report on Friday, June 13th. Melius began coverage on Darden Restaurants in a research report on Monday, July 14th. They issued a "hold" rating and a $240.00 price objective on the stock. Argus reduced their target price on Darden Restaurants from $260.00 to $220.00 and set a "buy" rating on the stock in a report on Friday. Morgan Stanley lifted their target price on Darden Restaurants from $235.00 to $238.00 and gave the stock an "overweight" rating in a report on Friday. Finally, Citigroup increased their price objective on Darden Restaurants from $245.00 to $253.00 and gave the stock a "buy" rating in a research note on Monday, June 23rd. Eighteen analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $224.21.

Darden Restaurants Stock Down 3.2%

DRI stock traded down $6.08 on Friday, reaching $186.66. 1,583,373 shares of the company traded hands, compared to its average volume of 1,315,782. 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 0.92, a current ratio of 0.42 and a quick ratio of 0.28. The company has a market cap of $21.76 billion, a P/E ratio of 21.07, a price-to-earnings-growth ratio of 1.91 and a beta of 0.71. The firm has a fifty day simple moving average of $206.86 and a 200-day simple moving average of $206.12.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its quarterly earnings data 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). Darden Restaurants had a net margin of 8.69% and a return on equity of 51.81%. The company had revenue of $3.04 billion for the quarter, compared to the consensus estimate of $3.03 billion. During the same period last year, the business earned $1.75 EPS. The firm's quarterly revenue was up 10.4% on a year-over-year basis. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. Research analysts anticipate that Darden Restaurants will post 9.52 earnings per share for the current year.

Darden Restaurants announced that its board has authorized a stock buyback plan on Friday, June 20th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the restaurant operator to buy up to 3.8% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other news, SVP Susan M. Connelly sold 4,735 shares of the company's stock in a transaction dated Tuesday, June 24th. The shares were 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 approximately $1,029,835.56. This represents a 50.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Douglas J. Milanes sold 11,948 shares of the company's stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $222.08, for a total transaction of $2,653,411.84. Following the completion of the sale, the senior vice president directly owned 147 shares of the company's stock, valued at $32,645.76. The trade was a 98.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 45,727 shares of company stock valued at $10,022,232 over the last ninety days. Company insiders own 0.49% of the company's stock.

Institutional Trading of Darden Restaurants

Several large investors have recently modified their holdings of DRI. Twin Peaks Wealth Advisors LLC acquired a new position in shares of Darden Restaurants in the 2nd quarter valued at $26,000. Grove Bank & Trust increased its stake in Darden Restaurants by 171.4% during the 1st quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator's stock worth $28,000 after buying an additional 84 shares during the period. True Wealth Design LLC increased its stake in Darden Restaurants by 419.2% during the 2nd quarter. True Wealth Design LLC now owns 135 shares of the restaurant operator's stock worth $29,000 after buying an additional 109 shares during the period. Elevation Point Wealth Partners LLC acquired a new position in Darden Restaurants during the 2nd quarter worth $29,000. Finally, ORG Partners LLC grew its holdings in Darden Restaurants by 108.8% during the 1st quarter. ORG Partners LLC now owns 142 shares of the restaurant operator's stock worth $30,000 after acquiring an additional 74 shares in the last quarter. 93.64% of the stock is currently owned by institutional investors and hedge funds.

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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