Ieq Capital LLC Acquires 12,242 Shares of Darden Restaurants, Inc. $DRI

Key Points

• Ieq Capital LLC significantly increased its holdings in Darden Restaurants by 786.8% during the first quarter, owning 13,798 shares valued at approximately $2.87 million.
• Darden Restaurants reported earnings of $2.98 per share for a recent quarter, slightly exceeding analysts' expectations, with a 10.6% year-over-year revenue increase to $3.27 billion.
• The company initiated a $1 billion share buyback program and raised its quarterly dividend from $1.40 to $1.50, reflecting confidence in its stock value and enhancing shareholder returns.

Ieq Capital LLC grew its stake in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 786.8% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 13,798 shares of the restaurant operator's stock after buying an additional 12,242 shares during the period. Ieq Capital LLC's holdings in Darden Restaurants were worth $2,867,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Grove Bank & Trust increased its position in shares of Darden Restaurants by 171.4% during the first quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator's stock valued at $28,000 after buying an additional 84 shares during the period. ORG Partners LLC increased its position in shares of Darden Restaurants by 108.8% during the first quarter. ORG Partners LLC now owns 142 shares of the restaurant operator's stock valued at $30,000 after buying an additional 74 shares during the period. Centennial Bank AR bought a new stake in shares of Darden Restaurants during the first quarter valued at about $31,000. Alpine Bank Wealth Management bought a new stake in shares of Darden Restaurants during the first quarter valued at about $34,000. Finally, SouthState Corp bought a new stake in shares of Darden Restaurants during the first quarter valued at about $36,000. 93.64% of the stock is currently owned by institutional investors.

Darden Restaurants Trading Up 0.5%

Shares of NYSE:DRI traded up $1.06 during trading on Tuesday, reaching $208.00. 783,248 shares of the company traded hands, compared to its average volume of 846,046. The firm has a market capitalization of $24.25 billion, a price-to-earnings ratio of 23.42, a P/E/G ratio of 1.90 and a beta of 0.71. Darden Restaurants, Inc. has a 52-week low of $153.98 and a 52-week high of $228.27. The company has a current ratio of 0.42, a quick ratio of 0.28 and a debt-to-equity ratio of 0.92. The business's fifty day moving average is $208.78 and its 200-day moving average is $205.04.

Darden Restaurants (NYSE:DRI - Get Free Report) last released its quarterly earnings data 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. The firm had revenue of $3.27 billion during the quarter, compared to analyst estimates of $3.25 billion. Darden Restaurants had a return on equity of 51.81% and a net margin of 8.69%.The business's quarterly revenue was up 10.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.65 earnings per share. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. As a group, analysts forecast that Darden Restaurants, Inc. will post 9.52 EPS for the current year.

Darden Restaurants Increases Dividend

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

Darden Restaurants declared that its Board of Directors has approved a share repurchase plan on Friday, June 20th that allows the company to buyback $1.00 billion in 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 typically an indication that the company's leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on DRI shares. Jefferies Financial Group raised Darden Restaurants from an "underperform" rating to a "hold" rating and boosted their price objective for the stock from $165.00 to $210.00 in a report on Friday, June 13th. Melius Research raised Darden Restaurants to a "hold" rating in a report on Monday, July 14th. KeyCorp boosted their price objective on Darden Restaurants from $230.00 to $245.00 and gave the stock an "overweight" rating in a report on Monday, June 23rd. Robert W. Baird boosted their price objective on Darden Restaurants from $218.00 to $230.00 and gave the stock a "neutral" rating in a report on Monday, June 23rd. Finally, Barclays boosted their price objective on Darden Restaurants from $235.00 to $255.00 and gave the stock an "overweight" rating in a report on Monday, June 23rd. Sixteen research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $225.19.

Insider Activity

In other news, CFO Rajesh Vennam sold 5,780 shares of the stock in a transaction that occurred on Tuesday, June 24th. The stock was 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. This represents a 55.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Susan M. Connelly sold 4,735 shares of the 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 sale, the senior vice president directly owned 4,602 shares of the company's stock, valued at approximately $1,029,835.56. This trade represents a 50.71% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 45,727 shares of company stock valued at $10,022,232. Corporate insiders own 0.49% of the company's stock.

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.