Darden Restaurants, Inc. (NYSE:DRI) Stock Position Decreased by Deutsche Bank AG

Key Points

• Deutsche Bank AG reduced its stake in Darden Restaurants by 7.2% in Q1, owning approximately 549,045 shares valued at $114.07 million.
• Darden Restaurants raised its quarterly dividend from $1.40 to $1.50, leading to an annualized dividend yield of 3.0% and a payout ratio of 67.57%.
• Over 93.64% of Darden's shares are held by institutional investors, reflecting strong financial interest from large investment firms.

Deutsche Bank AG trimmed its holdings in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 7.2% during the first quarter, according to its most recent Form 13F filing with the SEC. The firm owned 549,045 shares of the restaurant operator's stock after selling 42,623 shares during the period. Deutsche Bank AG owned 0.47% of Darden Restaurants worth $114,070,000 as of its most recent SEC filing.

A number of other large investors also recently modified their holdings of the business. Chicago Partners Investment Group LLC raised its stake in Darden Restaurants by 5.4% during the first quarter. Chicago Partners Investment Group LLC now owns 5,347 shares of the restaurant operator's stock worth $1,059,000 after acquiring an additional 276 shares during the period. Charles Schwab Investment Management Inc. grew its holdings in shares of Darden Restaurants by 6.6% during the first quarter. Charles Schwab Investment Management Inc. now owns 3,998,200 shares of the restaurant operator's stock valued at $830,666,000 after purchasing an additional 247,542 shares during the last quarter. ASR Vermogensbeheer N.V. acquired a new stake in shares of Darden Restaurants during the 1st quarter worth approximately $3,792,000. MGB Wealth Management LLC raised its position in shares of Darden Restaurants by 9.0% during the 1st quarter. MGB Wealth Management LLC now owns 4,414 shares of the restaurant operator's stock worth $912,000 after purchasing an additional 364 shares during the period. Finally, West Michigan Advisors LLC bought a new stake in shares of Darden Restaurants in the 1st quarter worth approximately $204,000. 93.64% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of research analysts recently commented on the company. Wall Street Zen downgraded Darden Restaurants from a "buy" rating to a "hold" rating in a research note on Friday, June 27th. Morgan Stanley boosted their price target on shares of Darden Restaurants from $215.00 to $235.00 and gave the company an "overweight" rating in a report on Wednesday, June 18th. Evercore ISI increased their price objective on shares of Darden Restaurants from $230.00 to $250.00 and gave the stock an "outperform" rating in a report on Monday, June 16th. BMO Capital Markets lifted their price objective on shares of Darden Restaurants from $190.00 to $215.00 and gave the company a "market perform" rating in a research report on Wednesday, June 25th. Finally, Truist Financial upped their target price on shares of Darden Restaurants from $230.00 to $252.00 and gave the stock a "buy" rating in a research report on Wednesday, June 18th. Twelve analysts have rated the stock with a hold rating and sixteen have given a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $225.19.

Insiders Place Their Bets

In other Darden Restaurants news, CFO Rajesh Vennam sold 5,780 shares of the company's stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $222.22, for a total transaction of $1,284,431.60. Following the completion of the sale, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Douglas J. Milanes sold 11,948 shares of Darden Restaurants stock in a transaction that occurred on Tuesday, June 24th. The stock was sold at an average price of $222.08, for a total transaction of $2,653,411.84. Following the completion of the transaction, the senior vice president directly owned 147 shares in the company, valued at approximately $32,645.76. This trade represents a 98.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 45,727 shares of company stock worth $10,022,232 over the last three months. Company insiders own 0.49% of the company's stock.

Darden Restaurants Price Performance

Shares of DRI traded down $0.48 during mid-day trading on Thursday, hitting $206.44. The company's stock had a trading volume of 305,431 shares, compared to its average volume of 1,329,845. The company has a debt-to-equity ratio of 0.92, a current ratio of 0.42 and a quick ratio of 0.28. The firm has a 50-day moving average price of $212.54 and a 200 day moving average price of $203.90. Darden Restaurants, Inc. has a fifty-two week low of $141.82 and a fifty-two week high of $228.27. The stock has a market capitalization of $24.07 billion, a price-to-earnings ratio of 23.25, a PEG ratio of 1.89 and a beta of 0.75.

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

Darden Restaurants Increases Dividend

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

Darden Restaurants declared that its Board of Directors has authorized a share repurchase plan on Friday, June 20th that allows the company to buyback $1.00 billion in outstanding 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 usually a sign that the company's management believes its stock is 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.