DAVENPORT & Co LLC Buys 2,163 Shares of Darden Restaurants, Inc. $DRI

Key Points

• DAVENPORT & Co LLC increased its stake in Darden Restaurants by 120.4%, purchasing an additional 2,163 shares, bringing its total holdings to 3,959 shares worth $863,000.
• Darden Restaurants recently reported a quarterly earnings EPS of $1.97, missing expectations, but revenue for the quarter rose 10.4% year over year, totaling $3.04 billion.
• The company's board has authorized a $1 billion stock repurchase program, reflecting confidence in the stock's valuation as the firm declares a quarterly dividend of $1.50 per share.

DAVENPORT & Co LLC raised its holdings in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 120.4% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 3,959 shares of the restaurant operator's stock after buying an additional 2,163 shares during the period. DAVENPORT & Co LLC's holdings in Darden Restaurants were worth $863,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Grove Bank & Trust raised its stake in shares of Darden Restaurants by 171.4% during the first quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator's stock valued at $28,000 after acquiring an additional 84 shares in the last quarter. ORG Partners LLC lifted its holdings in Darden Restaurants by 108.8% during the first 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 stake in Darden Restaurants during the first quarter worth $31,000. Alpine Bank Wealth Management purchased a new stake in Darden Restaurants during the first quarter worth $34,000. Finally, SouthState Corp purchased a new stake in Darden Restaurants during the first quarter worth $36,000. Institutional investors own 93.64% of the company's stock.

Darden Restaurants Price Performance

NYSE:DRI opened at $181.12 on Friday. Darden Restaurants, Inc. has a one year low of $155.90 and a one year high of $228.27. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.27 and a current ratio of 0.40. The firm has a market cap of $21.07 billion, a price-to-earnings ratio of 19.41, a PEG ratio of 1.66 and a beta of 0.77. The firm's fifty day moving average is $201.35 and its two-hundred day moving average is $205.60.

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

Darden Restaurants announced 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 purchase up to 3.8% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Darden Restaurants Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 3rd. Shareholders of record on Friday, October 10th will be issued a $1.50 dividend. This represents a $6.00 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Friday, October 10th. Darden Restaurants's dividend payout ratio is presently 64.31%.

Insider Buying and Selling at Darden Restaurants

In other news, insider Laura B. Williamson sold 523 shares of the stock in a transaction dated Wednesday, July 30th. The shares were sold at an average price of $204.65, for a total transaction of $107,031.95. Following the sale, the insider directly owned 5,423 shares of the company's stock, valued at $1,109,816.95. This represents a 8.80% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Matthew R. Broad sold 5,661 shares of the stock in a transaction dated 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 directly owned 13,916 shares in the company, valued at approximately $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. Over the last ninety days, insiders sold 7,674 shares of company stock worth $1,507,575. 0.49% of the stock is owned by corporate insiders.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Robert W. Baird reduced their price target on Darden Restaurants from $230.00 to $208.00 and set a "neutral" rating on the stock in a research report on Friday, September 19th. Oppenheimer upped their price target on Darden Restaurants from $230.00 to $250.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 18th. Bank of America upped their price target on Darden Restaurants from $253.00 to $254.00 and gave the stock a "buy" rating in a research report on Tuesday, September 16th. JPMorgan Chase & Co. reduced their price target on Darden Restaurants from $240.00 to $230.00 and set an "overweight" rating on the stock in a research report on Monday, October 6th. Finally, Guggenheim upped their price target on Darden Restaurants from $220.00 to $235.00 and gave the stock a "buy" rating in a research report on Wednesday, September 17th. Nineteen investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $225.59.

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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