DoubleLine ETF Adviser LP Makes New Investment in Darden Restaurants, Inc. $DRI

Key Points

• DoubleLine ETF Adviser LP has made a new investment in Darden Restaurants, acquiring 2,839 shares valued at approximately $590,000.
• Insider transactions revealed that senior vice president Douglas J. Milanes sold over 11,000 shares of Darden stock, leading to a 98.78% decrease in his ownership.
• Darden Restaurants recently initiated a $1.00 billion stock buyback program, allowing for the reacquisition of up to 3.8% of its shares, indicating management's belief in the stock's undervaluation.

DoubleLine ETF Adviser LP bought a new position in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 2,839 shares of the restaurant operator's stock, valued at approximately $590,000.

Other institutional investors have also recently added to or reduced their stakes in the company. Alliancebernstein L.P. lifted its position in Darden Restaurants by 9.3% during the 1st quarter. Alliancebernstein L.P. now owns 164,308 shares of the restaurant operator's stock worth $34,137,000 after acquiring an additional 14,045 shares during the period. AQR Capital Management LLC grew its stake in shares of Darden Restaurants by 144.8% in the 1st quarter. AQR Capital Management LLC now owns 212,874 shares of the restaurant operator's stock valued at $43,692,000 after purchasing an additional 125,907 shares during the last quarter. Adage Capital Partners GP L.L.C. purchased a new position in shares of Darden Restaurants in the 1st quarter valued at approximately $17,315,000. Perbak Capital Partners LLP purchased a new position in shares of Darden Restaurants in the 1st quarter valued at approximately $211,000. Finally, Chiron Capital Management LLC purchased a new position in shares of Darden Restaurants in the 1st quarter valued at approximately $208,000. Institutional investors and hedge funds own 93.64% of the company's stock.

Darden Restaurants Price Performance

Darden Restaurants stock traded up $0.65 during mid-day trading on Monday, hitting $210.79. 1,199,014 shares of the company were exchanged, compared to its average volume of 802,231. Darden Restaurants, Inc. has a 12-month low of $153.98 and a 12-month high of $228.27. The company has a market capitalization of $24.58 billion, a P/E ratio of 23.74, a PEG ratio of 1.93 and a beta of 0.71. The business's 50 day simple moving average is $208.22 and its two-hundred day simple moving average is $205.53. 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 posted its quarterly earnings data on Friday, June 20th. The restaurant operator reported $2.98 EPS for the quarter, topping analysts' consensus estimates of $2.97 by $0.01. The firm had revenue of $3.27 billion during the quarter, compared to analysts' expectations of $3.25 billion. Darden Restaurants had a return on equity of 51.81% and a net margin of 8.69%.The firm's quarterly revenue was up 10.6% compared to the same quarter last year. During the same quarter last year, the business posted $2.65 EPS. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. Analysts forecast that Darden Restaurants, Inc. will post 9.52 earnings per share for the current fiscal year.

Darden Restaurants announced that its board has initiated a stock repurchase 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 typically an indication that the company's leadership believes its shares are undervalued.

Darden Restaurants Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 1st. Shareholders of record on Thursday, July 10th were paid a $1.50 dividend. This represents a $6.00 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend was Thursday, July 10th. This is an increase from Darden Restaurants's previous quarterly dividend of $1.40. Darden Restaurants's dividend payout ratio is presently 67.57%.

Insider Transactions at Darden Restaurants

In other Darden Restaurants news, SVP Susan M. Connelly sold 4,735 shares of Darden Restaurants stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $223.78, for a total value of $1,059,598.30. Following the completion of the sale, the senior vice president directly owned 4,602 shares of the company's stock, valued at approximately $1,029,835.56. The trade was a 50.71% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Rajesh Vennam sold 5,780 shares of the business's stock in a transaction that occurred on 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 owned 4,555 shares of the company's stock, valued at approximately $1,012,212.10. The trade was a 55.93% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 45,727 shares of company stock worth $10,022,232 in the last three months. 0.49% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on DRI. Morgan Stanley lifted their target price on Darden Restaurants from $215.00 to $235.00 and gave the company an "overweight" rating in a research note on Wednesday, June 18th. Melius initiated coverage on shares of Darden Restaurants in a report on Monday, July 14th. They issued a "hold" rating and a $240.00 target price on the stock. Raymond James Financial lifted their target price on shares of Darden Restaurants from $230.00 to $240.00 and gave the company an "outperform" rating in a report on Monday, June 23rd. KeyCorp lifted their target price on shares of Darden Restaurants from $230.00 to $245.00 and gave the company an "overweight" rating in a report on Monday, June 23rd. Finally, Robert W. Baird lifted their target price on shares of Darden Restaurants from $218.00 to $230.00 and gave the company a "neutral" rating in a report on Monday, June 23rd. Sixteen research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $225.19.

Darden Restaurants 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.