Knights of Columbus Asset Advisors LLC Raises Stock Holdings in Darden Restaurants, Inc. $DRI

Key Points

• Knights of Columbus Asset Advisors LLC increased its stake in Darden Restaurants, Inc. by 11.5%, holding a total of 43,630 shares valued at $9.51 million.
• Darden reported $1.97 EPS for the last quarter, missing estimates by $0.04, despite revenue of $3.04 billion, exceeding expectations.
• The company approved a $1 billion share buyback plan, reflecting confidence in its stock's value, alongside a quarterly dividend of $1.50 to be paid on November 3rd.

Knights of Columbus Asset Advisors LLC increased its stake in Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 11.5% during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 43,630 shares of the restaurant operator's stock after purchasing an additional 4,485 shares during the period. Knights of Columbus Asset Advisors LLC's holdings in Darden Restaurants were worth $9,510,000 as of its most recent SEC filing.

Several other hedge funds have also bought and sold shares of DRI. Grove Bank & Trust increased its holdings in shares of Darden Restaurants by 171.4% in the 1st quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator's stock worth $28,000 after buying an additional 84 shares during the last quarter. ORG Partners LLC grew its position in Darden Restaurants by 108.8% in 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 in the last quarter. Centennial Bank AR bought a new position in Darden Restaurants in the first quarter valued at $31,000. Alpine Bank Wealth Management purchased a new stake in Darden Restaurants during the first quarter valued at about $34,000. Finally, SouthState Corp bought a new stake in Darden Restaurants during the first quarter worth about $36,000. 93.64% of the stock is currently owned by institutional investors.

Darden Restaurants Price Performance

Shares of Darden Restaurants stock opened at $193.33 on Monday. The business has a 50 day moving average of $202.83 and a 200 day moving average of $206.22. 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 $22.49 billion, a PE ratio of 20.72, a P/E/G ratio of 1.77 and a beta of 0.77. The company has a quick ratio of 0.27, a current ratio of 0.40 and a debt-to-equity ratio of 0.96.

Darden Restaurants (NYSE:DRI - Get Free Report) last issued 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). Darden Restaurants had a net margin of 8.90% and a return on equity of 52.35%. The company had revenue of $3.04 billion for the quarter, compared to analysts' expectations of $3.03 billion. During the same period in the previous year, the firm posted $1.75 earnings per share. The firm's revenue for the quarter 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. As a group, equities research analysts forecast that Darden Restaurants, Inc. will post 9.52 earnings per share for the current year.

Darden Restaurants declared that its board has approved a share buyback plan on Friday, June 20th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the restaurant operator to buy up to 3.8% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Darden Restaurants Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, November 3rd. Investors of record on Friday, October 10th will be paid a $1.50 dividend. This represents a $6.00 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend is Friday, October 10th. Darden Restaurants's dividend payout ratio is presently 64.31%.

Insider Buying and Selling

In other Darden Restaurants news, insider Laura B. Williamson sold 523 shares of Darden Restaurants stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $204.65, for a total transaction of $107,031.95. Following the sale, the insider directly owned 5,423 shares of the company's stock, valued at approximately $1,109,816.95. The trade was a 8.80% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders have sold 2,013 shares of company stock valued at $412,738 in the last ninety days. Company insiders own 0.49% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on DRI shares. BMO Capital Markets reduced their price target on shares of Darden Restaurants from $215.00 to $205.00 and set a "market perform" rating on the stock in a research report on Friday, September 19th. Bank of America increased their target price on shares of Darden Restaurants from $253.00 to $254.00 and gave the company a "buy" rating in a report on Tuesday, September 16th. Guggenheim lifted their target price on shares of Darden Restaurants from $220.00 to $235.00 and gave the stock a "buy" rating in a research report on Wednesday, September 17th. TD Securities restated a "hold" rating and set a $215.00 price target on shares of Darden Restaurants in a research report on Friday, June 20th. Finally, Barclays reduced their price objective on Darden Restaurants from $255.00 to $230.00 and set an "overweight" rating on the stock in a research note on Friday, September 19th. Nineteen analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, Darden Restaurants presently has an average rating of "Moderate Buy" and a consensus price target of $225.96.

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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