Darden Restaurants, Inc. $DRI Shares Acquired by UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC

Key Points

• UBS Asset Management increased its stake in Darden Restaurants by 6.4%, owning 625,449 shares valued at approximately $129.9 million.
• Darden Restaurants recently increased its quarterly dividend to $1.50 per share, representing a 2.8% dividend yield.
• Several brokerages raised their price targets for Darden Restaurants, with Citigroup setting the highest target at $253.00 and Morgan Stanley at $235.00.

UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 6.4% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 625,449 shares of the restaurant operator's stock after purchasing an additional 37,878 shares during the quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC owned about 0.53% of Darden Restaurants worth $129,943,000 as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. Grove Bank & Trust raised 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 buying an additional 84 shares during the period. ORG Partners LLC raised its position in shares of Darden Restaurants by 108.8% in the 1st 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 purchased a new position in shares of Darden Restaurants in the 1st quarter worth $31,000. Alpine Bank Wealth Management purchased a new position in shares of Darden Restaurants in the 1st quarter worth $34,000. Finally, SouthState Corp purchased a new position in shares of Darden Restaurants in the 1st quarter worth $36,000. 93.64% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several brokerages recently weighed in on DRI. Citigroup increased their target price on Darden Restaurants from $245.00 to $253.00 and gave the stock a "buy" rating in a research report on Monday, June 23rd. Oppenheimer increased their target price on Darden Restaurants from $230.00 to $250.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 18th. Morgan Stanley increased their target price on Darden Restaurants from $215.00 to $235.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 18th. Truist Financial reissued a "buy" rating and issued a $252.00 price objective on shares of Darden Restaurants in a research report on Tuesday, September 2nd. Finally, TD Securities reissued a "hold" rating and issued a $215.00 price objective on shares of Darden Restaurants in a research report on Friday, June 20th. Sixteen equities research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $224.92.

Insider Buying and Selling at Darden Restaurants

In related news, SVP Matthew R. Broad sold 733 shares of Darden Restaurants stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $218.50, for a total value of $160,160.50. Following the completion of the transaction, the senior vice president directly owned 14,367 shares in the company, valued at approximately $3,139,189.50. This trade represents a 4.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Laura B. Williamson sold 523 shares of Darden Restaurants stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $204.65, for a total value of $107,031.95. Following the completion of the transaction, the insider owned 5,423 shares of the company's stock, valued at $1,109,816.95. This trade represents a 8.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 45,727 shares of company stock valued at $10,022,232. Company insiders own 0.49% of the company's stock.

Darden Restaurants Trading Down 0.4%

NYSE:DRI opened at $212.62 on Friday. Darden Restaurants, Inc. has a 12 month low of $155.18 and a 12 month high of $228.27. The firm has a market capitalization of $24.79 billion, a PE ratio of 23.94, a price-to-earnings-growth ratio of 1.96 and a beta of 0.71. 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 business's 50-day moving average is $207.63 and its two-hundred day moving average is $205.85.

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 (EPS) for the quarter, topping 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 business had revenue of $3.27 billion for the quarter, compared to analyst estimates of $3.25 billion. During the same period in the previous year, the company earned $2.65 earnings per share. The company's revenue for the quarter was up 10.6% compared to the same quarter last year. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. Research analysts predict that Darden Restaurants, Inc. will post 9.52 earnings per share for the current fiscal year.

Darden Restaurants Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 1st. Stockholders 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 is a positive change from Darden Restaurants's previous quarterly dividend of $1.40. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.8%. Darden Restaurants's dividend payout ratio is presently 67.57%.

Darden Restaurants declared that its board has approved a stock buyback plan on Friday, June 20th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the restaurant operator to purchase up to 3.8% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's management believes its shares are undervalued.

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.

Want to see what other hedge funds are holding DRI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Darden Restaurants, Inc. (NYSE:DRI - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.