Darden Restaurants, Inc. $DRI Stock Position Raised by IFP Advisors Inc

Key Points

• IFP Advisors Inc increased its stake in Darden Restaurants, Inc. by 122.6% during the second quarter, owning 7,906 shares valued at approximately $1.72 million.
• Darden Restaurants reported a quarterly EPS of $1.97, missing estimates by $0.04, while its revenue rose by 10.4% year-over-year to $3.04 billion.
• The company announced a quarterly dividend of $1.50 per share, which translates to a 3.3% yield and will be paid on November 3rd to investors of record.

IFP Advisors Inc lifted its holdings in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 122.6% in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 7,906 shares of the restaurant operator's stock after buying an additional 4,355 shares during the period. IFP Advisors Inc's holdings in Darden Restaurants were worth $1,723,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the business. Bowman & Co S.C. grew its position in shares of Darden Restaurants by 0.5% during the 2nd quarter. Bowman & Co S.C. now owns 9,631 shares of the restaurant operator's stock valued at $2,099,000 after buying an additional 48 shares during the last quarter. Rise Advisors LLC grew its position in shares of Darden Restaurants by 32.2% during the 1st quarter. Rise Advisors LLC now owns 201 shares of the restaurant operator's stock valued at $42,000 after buying an additional 49 shares during the last quarter. Ballentine Partners LLC grew its position in shares of Darden Restaurants by 2.5% during the 2nd quarter. Ballentine Partners LLC now owns 1,975 shares of the restaurant operator's stock valued at $430,000 after buying an additional 49 shares during the last quarter. SBI Securities Co. Ltd. boosted its stake in Darden Restaurants by 15.8% during the 1st quarter. SBI Securities Co. Ltd. now owns 381 shares of the restaurant operator's stock valued at $79,000 after purchasing an additional 52 shares during the period. Finally, Fiduciary Financial Group LLC increased its stake in shares of Darden Restaurants by 3.2% in the second quarter. Fiduciary Financial Group LLC now owns 1,663 shares of the restaurant operator's stock valued at $365,000 after purchasing an additional 52 shares during the period. Institutional investors own 93.64% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. Evercore ISI dropped their price target on shares of Darden Restaurants from $245.00 to $240.00 and set an "outperform" rating on the stock in a research note on Friday, September 19th. Wells Fargo & Company dropped their price target on shares of Darden Restaurants from $225.00 to $200.00 and set an "equal weight" rating on the stock in a research note on Friday, September 19th. Weiss Ratings restated a "buy (b)" rating on shares of Darden Restaurants in a research note on Wednesday. Citigroup raised their price target on shares of Darden Restaurants from $245.00 to $253.00 and gave the company a "buy" rating in a research note on Monday, June 23rd. Finally, Barclays dropped their price target on shares of Darden Restaurants from $255.00 to $230.00 and set an "overweight" rating on the stock in a research note on Friday, September 19th. Nineteen equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $225.59.

Insider Buying and Selling

In related news, insider Laura B. Williamson sold 523 shares of the firm's stock in a transaction that occurred on Wednesday, July 30th. The shares were sold at an average price of $204.65, for a total transaction of $107,031.95. Following the completion of the sale, the insider directly owned 5,423 shares in the company, valued at approximately $1,109,816.95. This trade represents a 8.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Matthew R. Broad sold 5,661 shares of the firm's stock in a transaction that occurred on Monday, October 6th. The stock was sold at an average price of $193.40, for a total transaction of $1,094,837.40. Following the sale, the senior vice president owned 13,916 shares of the company's stock, valued at $2,691,354.40. The trade was a 28.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 7,674 shares of company stock valued at $1,507,575 over the last 90 days. 0.49% of the stock is currently owned by insiders.

Darden Restaurants Trading Down 3.0%

Darden Restaurants stock opened at $181.12 on Friday. The firm has a 50 day simple moving average of $201.35 and a 200-day simple moving average of $205.60. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.40 and a quick ratio of 0.27. The stock has a market capitalization of $21.07 billion, a PE ratio of 19.41, a price-to-earnings-growth ratio of 1.66 and a beta of 0.77. Darden Restaurants, Inc. has a 12-month low of $155.90 and a 12-month high of $228.27.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its quarterly earnings data on Thursday, September 18th. The restaurant operator reported $1.97 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.01 by ($0.04). The company had revenue of $3.04 billion during the quarter, compared to the consensus estimate of $3.03 billion. Darden Restaurants had a net margin of 8.90% and a return on equity of 52.35%. The company's revenue was up 10.4% on a year-over-year basis. During the same quarter last year, the business earned $1.75 earnings per share. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. As a group, equities research analysts expect that Darden Restaurants, Inc. will post 9.52 EPS for the current fiscal year.

Darden Restaurants Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Investors of record on Friday, October 10th will be issued a dividend of $1.50 per share. This represents a $6.00 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date is Friday, October 10th. Darden Restaurants's dividend payout ratio (DPR) is presently 64.31%.

Darden Restaurants announced that its Board of Directors has authorized a share buyback program on Friday, June 20th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the restaurant operator to purchase up to 3.8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its stock is 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.

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