Charles Schwab Investment Management Inc. Has $830.67 Million Holdings in Darden Restaurants, Inc. (NYSE:DRI)

Key Points

• Charles Schwab Investment Management Inc. increased its stake in Darden Restaurants by 6.6%, acquiring an additional 247,542 shares, bringing their total ownership to 3,998,200 shares valued at approximately $830 million.
• Darden Restaurants announced a $1 billion stock repurchase plan, allowing the company to buy back up to 3.8% of its shares, indicating management's belief that the stock is undervalued.
• The company also raised its quarterly dividend from $1.40 to $1.50 per share, resulting in an annualized dividend yield of 2.9%, while maintaining a payout ratio of 67.57%.

Charles Schwab Investment Management Inc. boosted its holdings in Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 6.6% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 3,998,200 shares of the restaurant operator's stock after purchasing an additional 247,542 shares during the quarter. Charles Schwab Investment Management Inc. owned about 3.42% of Darden Restaurants worth $830,666,000 at the end of the most recent quarter.

Several other institutional investors have also recently bought and sold shares of DRI. GAMMA Investing LLC increased its position in shares of Darden Restaurants by 46,484.5% during the first quarter. GAMMA Investing LLC now owns 928,895 shares of the restaurant operator's stock worth $192,987,000 after acquiring an additional 926,901 shares in the last quarter. Junto Capital Management LP purchased a new position in Darden Restaurants in the fourth quarter worth $48,919,000. Royal Bank of Canada increased its position in shares of Darden Restaurants by 145.2% during the 4th quarter. Royal Bank of Canada now owns 385,029 shares of the restaurant operator's stock valued at $71,883,000 after purchasing an additional 227,977 shares during the last quarter. Bank of Montreal Can increased its position in shares of Darden Restaurants by 184.3% during the 4th quarter. Bank of Montreal Can now owns 297,938 shares of the restaurant operator's stock valued at $55,622,000 after purchasing an additional 193,134 shares during the last quarter. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main bought a new stake in shares of Darden Restaurants during the 4th quarter worth $34,798,000. Institutional investors and hedge funds own 93.64% of the company's stock.

Darden Restaurants Stock Down 2.2%

Shares of DRI traded down $4.50 during mid-day trading on Friday, hitting $202.16. 1,027,660 shares of the company's stock were exchanged, compared to its average volume of 1,124,525. 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, Inc. has a fifty-two week low of $140.50 and a fifty-two week high of $228.27. The company has a market cap of $23.57 billion, a price-to-earnings ratio of 22.77, a P/E/G ratio of 1.86 and a beta of 0.75. The stock's 50-day moving average is $213.27 and its 200-day moving average is $203.65.

Darden Restaurants (NYSE:DRI - Get Free Report) last announced its quarterly earnings data on Friday, June 20th. The restaurant operator reported $2.98 EPS for the quarter, topping analysts' consensus estimates of $2.97 by $0.01. Darden Restaurants had a net margin of 8.69% and a return on equity of 51.81%. The company had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.25 billion. During the same quarter in the prior year, the firm earned $2.65 EPS. Darden Restaurants's quarterly revenue was up 10.6% on a year-over-year basis. On average, sell-side 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 given a dividend of $1.50 per share. The ex-dividend date of this dividend was Thursday, July 10th. This represents a $6.00 annualized dividend and a dividend yield of 3.0%. This is an increase from Darden Restaurants's previous quarterly dividend of $1.40. Darden Restaurants's dividend payout ratio is currently 67.57%.

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

Analysts Set New Price Targets

Several brokerages have weighed in on DRI. BMO Capital Markets increased their price objective on Darden Restaurants from $190.00 to $215.00 and gave the company a "market perform" rating in a report on Wednesday, June 25th. Wells Fargo & Company upped their target price on Darden Restaurants from $200.00 to $225.00 and gave the stock an "equal weight" rating in a research note on Tuesday, June 17th. Bank of America upped their price objective on Darden Restaurants from $252.00 to $253.00 and gave the stock a "buy" rating in a report on Monday, June 23rd. Citigroup raised their price objective on Darden Restaurants from $245.00 to $253.00 and gave the company a "buy" rating in a report on Monday, June 23rd. Finally, Robert W. Baird boosted their price target on shares of Darden Restaurants from $218.00 to $230.00 and gave the stock a "neutral" rating in a research note on Monday, June 23rd. Twelve equities research analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $225.19.

Insider Buying and Selling at Darden Restaurants

In other Darden Restaurants news, CFO Rajesh Vennam sold 5,780 shares of the business's stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $222.22, for a total value of $1,284,431.60. Following the transaction, the chief financial officer owned 4,555 shares in the company, valued at $1,012,212.10. The trade was a 55.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Matthew R. Broad sold 733 shares of the company's stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $218.50, for a total value of $160,160.50. Following the sale, the senior vice president directly owned 14,367 shares of the company's stock, valued at $3,139,189.50. The trade was a 4.85% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 45,727 shares of company stock worth $10,022,232. 0.58% of the stock is owned by insiders.

Darden Restaurants 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.