Generali Asset Management SPA SGR Boosts Stock Position in Darden Restaurants, Inc. $DRI

Key Points

• Generali Asset Management SPA SGR increased its stake in Darden Restaurants by 515.0% in the second quarter, now owning a total of 9,853 shares worth $2,148,000.
• Darden announced a quarterly dividend of $1.50 per share with a dividend yield of 3.2%, to be paid on November 3rd.
• Despite having reported quarterly revenue of $3.04 billion, Darden missed earnings expectations with $1.97 earnings per share, below the estimated $2.01.

Generali Asset Management SPA SGR raised its stake in Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 515.0% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 9,853 shares of the restaurant operator's stock after purchasing an additional 8,251 shares during the period. Generali Asset Management SPA SGR's holdings in Darden Restaurants were worth $2,148,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Bowman & Co S.C. lifted its holdings in shares of Darden Restaurants by 0.5% during the second quarter. Bowman & Co S.C. now owns 9,631 shares of the restaurant operator's stock worth $2,099,000 after purchasing an additional 48 shares during the period. Rise Advisors LLC lifted its holdings in Darden Restaurants by 32.2% in the first quarter. Rise Advisors LLC now owns 201 shares of the restaurant operator's stock valued at $42,000 after acquiring an additional 49 shares during the period. Ballentine Partners LLC lifted its holdings in Darden Restaurants by 2.5% in the second quarter. Ballentine Partners LLC now owns 1,975 shares of the restaurant operator's stock valued at $430,000 after acquiring an additional 49 shares during the period. SBI Securities Co. Ltd. lifted its holdings in Darden Restaurants by 15.8% in the first quarter. SBI Securities Co. Ltd. now owns 381 shares of the restaurant operator's stock valued at $79,000 after acquiring an additional 52 shares during the period. Finally, Fiduciary Financial Group LLC lifted its holdings in Darden Restaurants by 3.2% in the second quarter. Fiduciary Financial Group LLC now owns 1,663 shares of the restaurant operator's stock valued at $365,000 after acquiring an additional 52 shares during the period. Hedge funds and other institutional investors own 93.64% of the company's stock.

Darden Restaurants Trading Down 0.6%

Shares of DRI stock opened at $187.28 on Friday. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.40 and a quick ratio of 0.27. The company has a market cap of $21.78 billion, a price-to-earnings ratio of 20.07, a PEG ratio of 1.72 and a beta of 0.77. The stock has a 50 day simple moving average of $199.89 and a 200-day simple moving average of $205.06. Darden Restaurants, Inc. has a 1-year low of $157.89 and a 1-year high of $228.27.

Darden Restaurants (NYSE:DRI - Get Free Report) last announced its earnings results on Thursday, September 18th. The restaurant operator reported $1.97 earnings per share for the quarter, missing the consensus estimate of $2.01 by ($0.04). Darden Restaurants had a return on equity of 52.35% and a net margin of 8.90%.The business had revenue of $3.04 billion for the quarter, compared to analyst estimates of $3.03 billion. During the same period in the previous year, the company earned $1.75 earnings per share. The company's quarterly revenue 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. On average, equities research analysts expect that Darden Restaurants, Inc. will post 9.52 EPS for the current fiscal year.

Darden Restaurants announced that its Board of Directors has approved a stock buyback program on Friday, June 20th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the restaurant operator to purchase up to 3.8% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board believes its shares are undervalued.

Darden Restaurants Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, November 3rd. Investors of record on Friday, October 10th will be given a dividend of $1.50 per share. This represents a $6.00 annualized dividend and a dividend yield of 3.2%. The ex-dividend date is Friday, October 10th. Darden Restaurants's payout ratio is presently 64.31%.

Insider Activity at Darden Restaurants

In related news, SVP Matthew R. Broad sold 5,661 shares of the business's stock in a transaction that occurred on 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 completion of 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Laura B. Williamson sold 523 shares of the business's stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $204.65, for a total value of $107,031.95. Following the sale, the insider owned 5,423 shares of the company's stock, valued at $1,109,816.95. The trade was a 8.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 7,674 shares of company stock valued at $1,507,575 over the last quarter. 0.49% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. Bank of America boosted their price target on Darden Restaurants from $253.00 to $254.00 and gave the company a "buy" rating in a report on Tuesday, September 16th. TD Securities reissued a "hold" rating and issued a $215.00 price target on shares of Darden Restaurants in a report on Friday, June 20th. Citigroup boosted their price target on Darden Restaurants from $245.00 to $253.00 and gave the company a "buy" rating in a report on Monday, June 23rd. Deutsche Bank Aktiengesellschaft decreased their price target on Darden Restaurants from $239.00 to $220.00 and set a "buy" rating for the company in a report on Friday, September 19th. Finally, BMO Capital Markets reduced their target price on Darden Restaurants from $215.00 to $205.00 and set a "market perform" rating for the company in a research note on Friday, September 19th. Nineteen analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $225.59.

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.

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