Fulton Bank N.A. Cuts Stock Holdings in Darden Restaurants, Inc. $DRI

Key Points

• Fulton Bank N.A. has reduced its stake in Darden Restaurants by 13.2%, selling 2,973 shares to hold a total of 19,592 shares valued at approximately $4.27 million.
• Darden Restaurants reported $2.98 EPS for the recent quarter, beating estimates and showing a 10.6% year-over-year revenue increase to $3.27 billion.
• The company has initiated a $1 billion stock buyback plan and increased its quarterly dividend from $1.40 to $1.50 per share, indicating confidence in its stock value.

Fulton Bank N.A. decreased its position in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 13.2% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 19,592 shares of the restaurant operator's stock after selling 2,973 shares during the period. Fulton Bank N.A.'s holdings in Darden Restaurants were worth $4,270,000 at the end of the most recent quarter.

Other large investors have also bought and sold shares of the company. Rafferty Asset Management LLC raised its stake in Darden Restaurants by 12.1% in the 4th quarter. Rafferty Asset Management LLC now owns 10,933 shares of the restaurant operator's stock worth $2,041,000 after purchasing an additional 1,180 shares in the last quarter. Royal Bank of Canada lifted its position in Darden Restaurants by 145.2% during the fourth quarter. Royal Bank of Canada now owns 385,029 shares of the restaurant operator's stock valued at $71,883,000 after buying an additional 227,977 shares during the period. Teza Capital Management LLC bought a new position in shares of Darden Restaurants during the 4th quarter valued at approximately $205,000. Tidal Investments LLC boosted its stake in Darden Restaurants by 6.5% during the fourth quarter. Tidal Investments LLC now owns 3,622 shares of the restaurant operator's stock worth $676,000 after buying an additional 222 shares during the period. Finally, Vident Advisory LLC boosted its holdings in Darden Restaurants by 4.5% in the fourth quarter. Vident Advisory LLC now owns 2,511 shares of the restaurant operator's stock worth $469,000 after acquiring an additional 109 shares in the last quarter. 93.64% of the stock is currently owned by institutional investors and hedge funds.

Darden Restaurants Trading Down 4.1%

DRI stock traded down $7.91 during trading on Friday, reaching $184.83. The company had a trading volume of 3,334,483 shares, compared to its average volume of 1,189,895. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.40 and a quick ratio of 0.28. Darden Restaurants, Inc. has a 52 week low of $155.18 and a 52 week high of $228.27. The company has a market cap of $21.55 billion, a P/E ratio of 19.81, a PEG ratio of 1.69 and a beta of 0.71. The business has a 50 day moving average of $206.37 and a 200 day moving average of $206.14.

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

Darden Restaurants declared that its board has authorized 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 buy up to 3.8% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board believes its stock is undervalued.

Darden Restaurants Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 3rd. Shareholders of record on Friday, October 10th will be issued a dividend of $1.50 per share. This represents a $6.00 annualized dividend and a yield of 3.2%. The ex-dividend date is Friday, October 10th. Darden Restaurants's payout ratio is presently 67.57%.

Insider Buying and Selling

In other Darden Restaurants news, SVP Susan M. Connelly sold 4,735 shares of the business's stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $223.78, for a total value of $1,059,598.30. Following the transaction, the senior vice president 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Rajesh Vennam sold 5,780 shares of the company'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 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 $1,012,212.10. The trade was a 55.93% decrease in their position. The disclosure for this sale can be found here. Insiders sold 45,727 shares of company stock valued at $10,022,232 in the last ninety days. Company insiders own 0.49% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Wells Fargo & Company cut their target price on Darden Restaurants from $225.00 to $200.00 and set an "equal weight" rating on the stock in a research report on Friday. Melius started coverage on Darden Restaurants in a report on Monday, July 14th. They set a "hold" rating and a $240.00 target price on the stock. UBS Group increased their price target on Darden Restaurants from $225.00 to $245.00 and gave the company a "buy" rating in a research note on Monday, June 16th. Evercore ISI lowered their price target on shares of Darden Restaurants from $245.00 to $240.00 and set an "outperform" rating for the company in a report on Friday. Finally, Guggenheim increased their price objective on shares of Darden Restaurants from $220.00 to $235.00 and gave the company a "buy" rating in a research note on Wednesday. Eighteen investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Darden Restaurants has an average rating of "Moderate Buy" and an average price target of $225.96.

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.