Darden Restaurants, Inc. $DRI Stock Position Trimmed by Congress Asset Management Co.

Key Points

• Congress Asset Management Co. reduced its stake in Darden Restaurants by 19.2%, owning 10,728 shares worth approximately $2.34 million after selling 2,542 shares.
• Wall Street analysts have mixed opinions on Darden, with 18 rated as Buy and 10 as Hold, while the stock has an average price target of $225.96.
• Darden Restaurants announced a quarterly dividend of $1.50 per share, with an annualized yield of 3.2%, and launched a stock repurchase program of up to $1 billion.

Congress Asset Management Co. trimmed its holdings in Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 19.2% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 10,728 shares of the restaurant operator's stock after selling 2,542 shares during the quarter. Congress Asset Management Co.'s holdings in Darden Restaurants were worth $2,338,000 at the end of the most recent reporting period.

A number of other institutional investors also recently added to or reduced their stakes in the business. Grove Bank & Trust raised its position in shares of Darden Restaurants by 171.4% during 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 in the last quarter. ORG Partners LLC lifted 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 worth $30,000 after purchasing an additional 74 shares during the period. Centennial Bank AR bought a new stake in shares of Darden Restaurants in the 1st quarter worth $31,000. Alpine Bank Wealth Management acquired a new stake in shares of Darden Restaurants in the first quarter valued at $34,000. Finally, SouthState Corp bought a new position in Darden Restaurants during the first quarter valued at about $36,000. Institutional investors and hedge funds own 93.64% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on DRI. Morgan Stanley raised their price objective on shares of Darden Restaurants from $235.00 to $238.00 and gave the company an "overweight" rating in a research report on Friday, September 19th. Bank of America increased their price objective on Darden Restaurants from $253.00 to $254.00 and gave the company a "buy" rating in a research report on Tuesday, September 16th. Wall Street Zen lowered Darden Restaurants from a "buy" rating to a "hold" rating in a research report on Friday, June 27th. Truist Financial decreased their price target on Darden Restaurants from $252.00 to $240.00 and set a "buy" rating for the company in a research report on Friday, September 19th. Finally, Robert W. Baird reduced their price objective on shares of Darden Restaurants from $230.00 to $208.00 and set a "neutral" rating for the company in a research note on Friday, September 19th. Eighteen analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $225.96.

Insider Buying and Selling

In other news, insider Todd Burrowes sold 13,569 shares of the firm's stock in a transaction dated Monday, June 30th. The shares were sold at an average price of $216.45, for a total transaction of $2,937,010.05. Following the completion of the transaction, the insider directly owned 46,327 shares of the company's stock, valued at approximately $10,027,479.15. This trade represents a 22.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Laura B. Williamson sold 1,157 shares of Darden Restaurants stock in a transaction that occurred on Wednesday, July 30th. The shares were sold at an average price of $204.70, for a total value of $236,837.90. Following the sale, the insider directly owned 10,632 shares in the company, valued at $2,176,370.40. The trade was a 9.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 23,264 shares of company stock valued at $5,024,790 over the last ninety days. 0.49% of the stock is owned by company insiders.

Darden Restaurants Stock Performance

Shares of DRI opened at $188.49 on Friday. The firm has a market cap of $21.98 billion, a price-to-earnings ratio of 20.20, a price-to-earnings-growth ratio of 1.72 and a beta of 0.71. The company's fifty day moving average is $204.23 and its 200-day moving average is $205.95. The company has a quick ratio of 0.27, a current ratio of 0.40 and a debt-to-equity ratio of 0.96. Darden Restaurants, Inc. has a 12 month low of $155.18 and a 12 month high of $228.27.

Darden Restaurants (NYSE:DRI - Get Free Report) last released its quarterly earnings results on Thursday, September 18th. The restaurant operator reported $1.97 EPS for the quarter, missing analysts' consensus estimates of $2.01 by ($0.04). The firm 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 for the quarter was up 10.4% compared to the same quarter last year. During the same period in the prior year, the business earned $1.75 EPS. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. Equities analysts expect that Darden Restaurants, Inc. will post 9.52 EPS for the current fiscal year.

Darden Restaurants Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Investors of record on Friday, October 10th will be paid a $1.50 dividend. This represents a $6.00 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Friday, October 10th. Darden Restaurants's dividend payout ratio is presently 64.31%.

Darden Restaurants declared that its board has initiated a stock repurchase program on Friday, June 20th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the restaurant operator to buy up to 3.8% of its shares through open market purchases. Shares buyback programs are often an indication that the company's board believes its shares are undervalued.

About Darden Restaurants

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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