Aptus Capital Advisors LLC Takes $901,000 Position in Darden Restaurants, Inc. $DRI

Key Points

• Aptus Capital Advisors LLC invested approximately $901,000 in Darden Restaurants by purchasing 4,335 shares during the first quarter.
• Darden Restaurants announced a $1 billion share repurchase program to buy back up to 3.8% of its stock, indicating management's belief in the stock's undervaluation.
• The company increased its quarterly dividend to $1.50 per share, up from $1.40, representing an annualized dividend yield of 2.9% and a payout ratio of 67.57%.

Aptus Capital Advisors LLC acquired a new stake in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) during the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 4,335 shares of the restaurant operator's stock, valued at approximately $901,000.

A number of other institutional investors and hedge funds have also modified their holdings of the company. Grove Bank & Trust grew its position in Darden Restaurants by 171.4% in the first quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator's stock valued at $28,000 after acquiring an additional 84 shares during the period. ORG Partners LLC grew its position in Darden Restaurants by 108.8% in the first quarter. ORG Partners LLC now owns 142 shares of the restaurant operator's stock valued at $30,000 after acquiring an additional 74 shares during the period. Centennial Bank AR bought a new stake in Darden Restaurants in the first quarter valued at $31,000. Alpine Bank Wealth Management bought a new stake in Darden Restaurants in the first quarter valued at $34,000. Finally, SouthState Corp bought a new stake in Darden Restaurants in the first quarter valued at $36,000. 93.64% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several brokerages have recently commented on DRI. Raymond James Financial increased their target price on Darden Restaurants from $230.00 to $240.00 and gave the stock an "outperform" rating in a report on Monday, June 23rd. Wall Street Zen lowered Darden Restaurants from a "buy" rating to a "hold" rating in a research note on Friday, June 27th. Bank of America increased their target price on Darden Restaurants from $252.00 to $253.00 and gave the company a "buy" rating in a research note on Monday, June 23rd. Oppenheimer raised their price target on Darden Restaurants from $230.00 to $250.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 18th. Finally, Wells Fargo & Company raised their price target on Darden Restaurants from $200.00 to $225.00 and gave the stock an "equal weight" rating in a research report on Tuesday, June 17th. Sixteen research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $225.19.

Darden Restaurants Stock Performance

Shares of DRI traded down $3.1920 during mid-day trading on Monday, reaching $205.3880. The company's stock had a trading volume of 995,227 shares, compared to its average volume of 1,317,413. Darden Restaurants, Inc. has a 1-year low of $153.98 and a 1-year high of $228.27. The stock has a market cap of $23.95 billion, a P/E ratio of 23.13, a PEG ratio of 1.92 and a beta of 0.75. The business has a 50-day simple moving average of $211.11 and a two-hundred day simple moving average of $204.51. The company has a current ratio of 0.42, a quick ratio of 0.28 and a debt-to-equity ratio of 0.92.

Darden Restaurants (NYSE:DRI - Get Free Report) last released its quarterly earnings data on Friday, June 20th. The restaurant operator reported $2.98 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.97 by $0.01. Darden Restaurants had a return on equity of 51.81% and a net margin of 8.69%.The company had revenue of $3.27 billion during the quarter, compared to analysts' expectations of $3.25 billion. During the same period last year, the firm posted $2.65 earnings per share. The business's revenue was up 10.6% on a year-over-year basis. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. As a group, equities research analysts anticipate that Darden Restaurants, Inc. will post 9.52 earnings per share for the current fiscal year.

Darden Restaurants Increases Dividend

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

Darden Restaurants declared that its Board of Directors 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 repurchase up to 3.8% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at Darden Restaurants

In related news, CFO Rajesh Vennam sold 5,780 shares of Darden Restaurants stock in a transaction that occurred on Tuesday, June 24th. The stock was sold at an average price of $222.22, for a total transaction of $1,284,431.60. Following the completion of the sale, the chief financial officer directly owned 4,555 shares of the company's stock, valued at approximately $1,012,212.10. This trade represents a 55.93% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, SVP Susan M. Connelly sold 4,735 shares of Darden Restaurants stock in a transaction on 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 transaction, the senior vice president directly owned 4,602 shares of the company's stock, valued at $1,029,835.56. This represents a 50.71% decrease in their ownership of the stock. 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 90 days. Company insiders own 0.49% 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.