Darden Restaurants, Inc. (NYSE:DRI) Shares Purchased by Avantax Advisory Services Inc.

Key Points

• Avantax Advisory Services Inc. increased its stake in Darden Restaurants, owning 10,619 shares valued at $2.2 million, reflecting a 16.8% growth during the 1st quarter.
• Darden Restaurants has announced a $1 billion stock repurchase plan, signaling confidence in its stock value, alongside a dividend increase to $1.50 per share.
• Analysts have raised Darden's price targets, with the average consensus now at $225.19, indicating a generally positive outlook on the stock.

Avantax Advisory Services Inc. increased its stake in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 16.8% during the first quarter, according to its most recent filing with the SEC. The institutional investor owned 10,619 shares of the restaurant operator's stock after purchasing an additional 1,527 shares during the period. Avantax Advisory Services Inc.'s holdings in Darden Restaurants were worth $2,206,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of the business. Grove Bank & Trust grew its position in 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 acquiring an additional 84 shares during the last quarter. ORG Partners LLC raised its stake in Darden Restaurants by 108.8% during the first quarter. ORG Partners LLC now owns 142 shares of the restaurant operator's stock valued at $30,000 after buying an additional 74 shares during the last quarter. Centennial Bank AR purchased a new position in Darden Restaurants during the first quarter valued at $31,000. Alpine Bank Wealth Management purchased a new position in shares of Darden Restaurants in the first quarter worth $34,000. Finally, Whipplewood Advisors LLC raised its stake in shares of Darden Restaurants by 296.0% in the first quarter. Whipplewood Advisors LLC now owns 198 shares of the restaurant operator's stock worth $41,000 after purchasing an additional 148 shares during the last quarter. Hedge funds and other institutional investors own 93.64% of the company's stock.

Insider Buying and Selling at Darden Restaurants

In other news, SVP Matthew R. Broad sold 6,949 shares of the company's stock in a transaction dated Monday, June 30th. The stock was sold at an average price of $218.00, for a total transaction of $1,514,882.00. Following the completion of the transaction, the senior vice president directly owned 14,367 shares of the company's stock, valued at approximately $3,132,006. This represents a 32.60% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Rajesh Vennam sold 5,780 shares of the company'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 directly owned 4,555 shares of the company's stock, valued at approximately $1,012,212.10. This represents a 55.93% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 45,727 shares of company stock worth $10,022,232. Corporate insiders own 0.58% of the company's stock.

Darden Restaurants Trading Up 0.9%

DRI traded up $1.85 during trading hours on Friday, reaching $203.52. The company's stock had a trading volume of 1,158,409 shares, compared to its average volume of 1,092,358. Darden Restaurants, Inc. has a fifty-two week low of $140.10 and a fifty-two week high of $228.27. The stock has a market cap of $23.82 billion, a PE ratio of 22.92, a P/E/G ratio of 1.86 and a beta of 0.75. The business's 50-day moving average is $214.00 and its 200-day moving average is $202.76. The company has a debt-to-equity ratio of 0.92, a current ratio of 0.42 and a quick ratio of 0.28.

Darden Restaurants (NYSE:DRI - Get Free Report) last released its quarterly earnings results on Friday, June 20th. The restaurant operator reported $2.98 EPS for the quarter, topping the consensus estimate of $2.97 by $0.01. The business had revenue of $3.27 billion during the quarter, compared to analyst estimates of $3.25 billion. Darden Restaurants had a return on equity of 51.81% and a net margin of 8.69%. The company's quarterly revenue was up 10.6% on a year-over-year basis. During the same period last year, the business posted $2.65 earnings per share. As a group, equities research analysts predict that Darden Restaurants, Inc. will post 9.52 earnings per share for the current fiscal year.

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

Darden Restaurants Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 1st. Stockholders of record on Thursday, July 10th will be given a dividend of $1.50 per share. The ex-dividend date of this dividend is Thursday, July 10th. This represents a $6.00 annualized dividend and a dividend yield of 2.9%. This is an increase from Darden Restaurants's previous quarterly dividend of $1.40. Darden Restaurants's payout ratio is currently 67.57%.

Wall Street Analysts Forecast Growth

DRI has been the subject of several research analyst reports. Robert W. Baird lifted their price objective on Darden Restaurants from $218.00 to $230.00 and gave the stock a "neutral" rating in a report on Monday, June 23rd. Raymond James Financial increased their price objective on Darden Restaurants from $230.00 to $240.00 and gave the stock an "outperform" rating in a research note on Monday, June 23rd. Truist Financial raised their price objective on Darden Restaurants from $230.00 to $252.00 and gave the stock a "buy" rating in a research report on Wednesday, June 18th. 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. Finally, Melius Research upgraded Darden Restaurants to a "hold" rating in a research note on Monday, July 14th. Twelve equities research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company's stock. According to data from MarketBeat.com, Darden Restaurants presently has an average rating of "Moderate Buy" and an average target price of $225.19.

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.