Fuller & Thaler Asset Management Inc. Sells 2,305 Shares of Darden Restaurants, Inc. $DRI

Key Points

• Fuller & Thaler Asset Management Inc. reduced its holdings in Darden Restaurants by 36.6%, bringing its share count down to 4,000 and value to $831,000 as of the latest SEC filing.
• Darden Restaurants has initiated a $1 billion share buyback program, indicating confidence in its stock valuation as it allows the company to repurchase up to 3.8% of its shares.
• The company also raised its quarterly dividend from $1.40 to $1.50, reflecting a 2.9% dividend yield and a payout ratio of 67.57%.

Fuller & Thaler Asset Management Inc. reduced its position in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 36.6% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 4,000 shares of the restaurant operator's stock after selling 2,305 shares during the period. Fuller & Thaler Asset Management Inc.'s holdings in Darden Restaurants were worth $831,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in DRI. Grove Bank & Trust raised its stake in Darden Restaurants by 171.4% during the first 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 period. 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 worth $30,000 after acquiring an additional 74 shares during the period. Centennial Bank AR acquired a new stake in Darden Restaurants during the first quarter worth about $31,000. Alpine Bank Wealth Management acquired a new stake in Darden Restaurants during the first quarter worth about $34,000. Finally, SouthState Corp acquired a new stake in Darden Restaurants during the first quarter worth about $36,000. 93.64% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on DRI shares. BMO Capital Markets raised their price target on shares of Darden Restaurants from $190.00 to $215.00 and gave the company a "market perform" rating in a research note on Wednesday, June 25th. Bank of America increased their price target on Darden Restaurants from $252.00 to $253.00 and gave the stock a "buy" rating in a research note on Monday, June 23rd. Citigroup increased their price target on Darden Restaurants from $245.00 to $253.00 and gave the stock a "buy" rating in a research note on Monday, June 23rd. Evercore ISI increased their price target on Darden Restaurants from $230.00 to $250.00 and gave the stock an "outperform" rating in a research note on Monday, June 16th. Finally, Jefferies Financial Group upgraded shares of Darden Restaurants from an "underperform" rating to a "hold" rating and raised their price objective for the company from $165.00 to $210.00 in a research note on Friday, June 13th. Sixteen equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. According to MarketBeat.com, Darden Restaurants currently has an average rating of "Moderate Buy" and an average price target of $225.19.

Darden Restaurants Trading Down 1.4%

Shares of NYSE:DRI traded down $2.9590 during midday trading on Monday, reaching $205.6210. The company had a trading volume of 521,529 shares, compared to its average volume of 1,314,242. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.28 and a current ratio of 0.42. Darden Restaurants, Inc. has a 1-year low of $153.98 and a 1-year high of $228.27. The firm has a market cap of $23.98 billion, a price-to-earnings ratio of 23.17, a price-to-earnings-growth ratio of 1.92 and a beta of 0.75. The company has a fifty day simple moving average of $211.11 and a two-hundred day simple moving average of $204.51.

Darden Restaurants (NYSE:DRI - Get Free Report) last released its quarterly earnings results on Friday, June 20th. The restaurant operator reported $2.98 earnings per share for the quarter, beating analysts' consensus estimates of $2.97 by $0.01. Darden Restaurants had a return on equity of 51.81% and a net margin of 8.69%.The business had revenue of $3.27 billion during the quarter, compared to analyst estimates of $3.25 billion. During the same quarter last year, the company posted $2.65 EPS. Darden Restaurants's revenue for the quarter was up 10.6% on a year-over-year basis. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. Research analysts predict that Darden Restaurants, Inc. will post 9.52 earnings per share for the current year.

Darden Restaurants Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 1st. Shareholders of record on Thursday, July 10th were paid a dividend of $1.50 per share. This is an increase from Darden Restaurants's previous quarterly dividend of $1.40. The ex-dividend date of this dividend 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 (DPR) is 67.57%.

Darden Restaurants declared that its Board of Directors has approved a share buyback plan on Friday, June 20th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the restaurant operator to reacquire up to 3.8% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its shares are undervalued.

Insider Activity at Darden Restaurants

In other Darden Restaurants news, insider Todd Burrowes sold 13,569 shares of Darden Restaurants stock in a transaction on 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 sale, the insider owned 46,327 shares of the company's stock, valued at $10,027,479.15. This trade represents a 22.65% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Rajesh Vennam sold 5,780 shares of the firm'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 sale, the chief financial officer directly owned 4,555 shares of the company's stock, valued at $1,012,212.10. This trade represents a 55.93% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 45,727 shares of company stock worth $10,022,232. 0.49% of the stock is currently owned by company insiders.

Darden Restaurants Company 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.