Aigen Investment Management LP Makes New Investment in Darden Restaurants, Inc. (NYSE:DRI)

Key Points

• Aigen Investment Management LP has acquired a new stake in Darden Restaurants, purchasing 8,683 shares valued at approximately $1.8 million.
• Institutional investors collectively own 93.64% of Darden Restaurants, with several firms increasing their holdings significantly in recent quarters.
• Darden Restaurants has recently boosted its quarterly dividend to $1.50 per share, representing a 3.0% yield for shareholders.

Aigen Investment Management LP acquired a new stake in Darden Restaurants, Inc. (NYSE:DRI - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 8,683 shares of the restaurant operator's stock, valued at approximately $1,804,000.

A number of other hedge funds also recently added to or reduced their stakes in the business. Grove Bank & Trust lifted its position in shares of Darden Restaurants by 171.4% in the 1st quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator's stock worth $28,000 after purchasing an additional 84 shares during the period. ORG Partners LLC lifted its holdings in Darden Restaurants by 108.8% during the first 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 period. Centennial Bank AR bought a new stake in Darden Restaurants during the 1st quarter valued at $31,000. Alpine Bank Wealth Management purchased a new position in shares of Darden Restaurants in the 1st quarter valued at $34,000. Finally, Whipplewood Advisors LLC raised its position in shares of Darden Restaurants by 296.0% in the 1st quarter. Whipplewood Advisors LLC now owns 198 shares of the restaurant operator's stock worth $41,000 after acquiring an additional 148 shares in the last quarter. 93.64% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of brokerages recently weighed in on DRI. Melius Research raised Darden Restaurants to a "hold" rating in a research report on Monday, July 14th. Wells Fargo & Company lifted their price objective on shares of Darden Restaurants from $200.00 to $225.00 and gave the stock an "equal weight" rating in a research report on Tuesday, June 17th. Citigroup increased their target price on shares of Darden Restaurants from $245.00 to $253.00 and gave the company a "buy" rating in a research report on Monday, June 23rd. JPMorgan Chase & Co. lifted their price target on shares of Darden Restaurants from $218.00 to $240.00 and gave the stock an "overweight" rating in a report on Wednesday, June 25th. Finally, UBS Group upped their price target on Darden Restaurants from $225.00 to $245.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Twelve analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $225.19.

Darden Restaurants Price Performance

NYSE DRI traded down $0.14 during trading hours on Thursday, reaching $206.78. The company's stock had a trading volume of 385,797 shares, compared to its average volume of 1,330,304. The firm has a market capitalization of $24.11 billion, a price-to-earnings ratio of 23.28, a P/E/G ratio of 1.89 and a beta of 0.75. The company's 50-day moving average is $212.54 and its two-hundred day moving average is $203.90. The company has a debt-to-equity ratio of 0.92, a current ratio of 0.42 and a quick ratio of 0.28. Darden Restaurants, Inc. has a 1-year low of $141.82 and a 1-year high of $228.27.

Darden Restaurants (NYSE:DRI - Get Free Report) last announced its earnings results on Friday, June 20th. The restaurant operator reported $2.98 earnings per share for the quarter, topping the consensus estimate of $2.97 by $0.01. The business had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.25 billion. Darden Restaurants had a return on equity of 51.81% and a net margin of 8.69%. The business's quarterly revenue was up 10.6% on a year-over-year basis. During the same period in the prior year, the company posted $2.65 EPS. On average, equities analysts predict that Darden Restaurants, Inc. will post 9.52 EPS for the current year.

Darden Restaurants Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 1st. Investors of record on Thursday, July 10th were paid a $1.50 dividend. The ex-dividend date of this dividend was Thursday, July 10th. This represents a $6.00 dividend on an annualized basis and a yield of 2.9%. This is a boost from Darden Restaurants's previous quarterly dividend of $1.40. Darden Restaurants's dividend payout ratio is 67.57%.

Darden Restaurants announced that its Board of Directors has initiated a stock repurchase plan on Friday, June 20th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the restaurant operator to buy up to 3.8% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its shares are undervalued.

Insider Transactions at Darden Restaurants

In related news, SVP Susan M. Connelly sold 4,735 shares of Darden Restaurants stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $223.78, for a total value of $1,059,598.30. Following the sale, the senior vice president directly owned 4,602 shares in the company, valued at approximately $1,029,835.56. The trade was a 50.71% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Todd Burrowes sold 13,569 shares of the firm's stock in a transaction that occurred on Monday, June 30th. The shares were sold at an average price of $216.45, for a total value of $2,937,010.05. Following the completion of the transaction, the insider owned 46,327 shares in the company, valued at approximately $10,027,479.15. This trade represents a 22.65% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 45,727 shares of company stock worth $10,022,232 in the last three months. 0.49% of the stock is owned by corporate insiders.

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.