Hsbc Holdings PLC Acquires 70,035 Shares of Darden Restaurants, Inc. $DRI

Key Points

• Hsbc Holdings PLC increased its stake in Darden Restaurants, Inc. by 28.0%, owning approximately 0.27% of the company worth around $66.4 million following the purchase of 70,035 additional shares.
• Darden Restaurants reported a quarterly EPS of $2.98, exceeding analysts' estimates, and achieved a 10.6% increase in revenue compared to the same period last year.
• The company has authorized a $1 billion share buyback plan and increased its quarterly dividend to $1.50, showcasing confidence in its stock value.

Hsbc Holdings PLC raised its stake in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 28.0% in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 320,402 shares of the restaurant operator's stock after buying an additional 70,035 shares during the quarter. Hsbc Holdings PLC owned about 0.27% of Darden Restaurants worth $66,439,000 at the end of the most recent reporting period.

A number of other large investors have also recently modified their holdings of DRI. First Trust Advisors LP boosted its position in shares of Darden Restaurants by 33.2% during the 4th quarter. First Trust Advisors LP now owns 143,947 shares of the restaurant operator's stock valued at $26,873,000 after acquiring an additional 35,894 shares during the last quarter. MML Investors Services LLC boosted its position in shares of Darden Restaurants by 1.0% during the 4th quarter. MML Investors Services LLC now owns 29,449 shares of the restaurant operator's stock valued at $5,498,000 after acquiring an additional 278 shares during the last quarter. Tower Research Capital LLC TRC boosted its position in shares of Darden Restaurants by 86.9% during the 4th quarter. Tower Research Capital LLC TRC now owns 8,819 shares of the restaurant operator's stock valued at $1,646,000 after acquiring an additional 4,101 shares during the last quarter. Fuller & Thaler Asset Management Inc. boosted its position in shares of Darden Restaurants by 55.8% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 6,305 shares of the restaurant operator's stock valued at $1,177,000 after acquiring an additional 2,257 shares during the last quarter. Finally, Kovitz Investment Group Partners LLC bought a new stake in shares of Darden Restaurants during the 4th quarter valued at about $540,000. Institutional investors own 93.64% of the company's stock.

Darden Restaurants Price Performance

NYSE:DRI traded down $3.1920 during mid-day trading on Monday, reaching $205.3880. The stock had a trading volume of 995,227 shares, compared to its average volume of 1,317,413. 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 one year low of $153.98 and a one year high of $228.27. The firm has a 50 day moving average price of $211.11 and a two-hundred day moving average price of $204.51. The stock has a market capitalization of $23.95 billion, a P/E ratio of 23.13, a P/E/G ratio of 1.92 and a beta of 0.75.

Darden Restaurants (NYSE:DRI - Get Free Report) last announced its quarterly earnings data on Friday, June 20th. The restaurant operator reported $2.98 earnings per share for the quarter, beating the consensus estimate of $2.97 by $0.01. Darden Restaurants had a return on equity of 51.81% and a net margin of 8.69%.The firm had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.25 billion. During the same quarter in the previous year, the company 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, analysts expect that Darden Restaurants, Inc. will post 9.52 earnings per share for the current year.

Darden Restaurants Increases Dividend

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

Darden Restaurants declared that its Board of Directors has approved a share 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 stock through open market purchases. Stock buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on DRI shares. Raymond James Financial lifted their price target on Darden Restaurants from $230.00 to $240.00 and gave the company an "outperform" rating in a research report on Monday, June 23rd. Melius started coverage on Darden Restaurants in a research report on Monday, July 14th. They set a "hold" rating and a $240.00 price target for the company. Evercore ISI lifted their price target on Darden Restaurants from $230.00 to $250.00 and gave the company an "outperform" rating in a research report on Monday, June 16th. Bank of America boosted their target price on Darden Restaurants from $252.00 to $253.00 and gave the stock a "buy" rating in a research report on Monday, June 23rd. Finally, Robert W. Baird boosted their target price on Darden Restaurants from $218.00 to $230.00 and gave the stock a "neutral" rating in a research report on Monday, June 23rd. Sixteen analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $225.19.

Insider Transactions at Darden Restaurants

In related news, CFO Rajesh Vennam sold 5,780 shares of the company's 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 transaction, the chief financial officer owned 4,555 shares in the company, valued at $1,012,212.10. This represents a 55.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Matthew R. Broad sold 733 shares of the company's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $218.50, for a total value of $160,160.50. Following the transaction, the senior vice president owned 14,367 shares of the company's stock, valued at approximately $3,139,189.50. This represents a 4.85% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 45,727 shares of company stock valued at $10,022,232. Insiders own 0.49% of the company's stock.

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.