Kovitz Investment Group Partners LLC Trims Stock Position in Darden Restaurants, Inc. $DRI

Key Points

• Kovitz Investment Group Partners cut its Darden Restaurants stake by 73.2% in the fourth quarter, selling 41,958 shares and leaving it with 15,335 shares valued at about $2.82 million.
• Darden posted solid quarterly results, with EPS of $2.95 beating estimates by a penny and revenue of $3.35 billion topping expectations, while revenue rose 5.9% year over year.
• Analyst sentiment remains broadly positive: several firms have raised or reiterated buy/outperform ratings, and MarketBeat shows a consensus rating of Moderate Buy with a price target of $227.04, though some firms remain cautious.

Kovitz Investment Group Partners LLC lessened its position in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 73.2% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 15,335 shares of the restaurant operator's stock after selling 41,958 shares during the period. Kovitz Investment Group Partners LLC's holdings in Darden Restaurants were worth $2,822,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Wellington Management Group LLP grew its position in shares of Darden Restaurants by 81.0% during the 4th quarter. Wellington Management Group LLP now owns 8,077,567 shares of the restaurant operator's stock valued at $1,486,434,000 after purchasing an additional 3,613,781 shares in the last quarter. JPMorgan Chase & Co. raised its position in shares of Darden Restaurants by 78.4% in the third quarter. JPMorgan Chase & Co. now owns 2,666,919 shares of the restaurant operator's stock worth $507,675,000 after buying an additional 1,171,890 shares in the last quarter. Norges Bank purchased a new stake in shares of Darden Restaurants in the fourth quarter worth $144,483,000. Alyeska Investment Group L.P. purchased a new stake in shares of Darden Restaurants in the fourth quarter worth $113,301,000. Finally, Invesco Ltd. boosted its stake in Darden Restaurants by 42.6% during the fourth quarter. Invesco Ltd. now owns 1,884,339 shares of the restaurant operator's stock valued at $346,756,000 after buying an additional 563,237 shares during the period. 93.64% of the stock is currently owned by hedge funds and other institutional investors.

Darden Restaurants Trading Up 0.1%

NYSE DRI opened at $213.58 on Friday. The company has a quick ratio of 0.25, a current ratio of 0.39 and a debt-to-equity ratio of 1.02. The stock's 50-day simple moving average is $200.17 and its two-hundred day simple moving average is $199.70. Darden Restaurants, Inc. has a twelve month low of $169.00 and a twelve month high of $228.27. The company has a market capitalization of $24.46 billion, a price-to-earnings ratio of 22.60, a PEG ratio of 1.91 and a beta of 0.60.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its quarterly earnings data on Thursday, March 19th. The restaurant operator reported $2.95 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.94 by $0.01. The firm had revenue of $3.35 billion during the quarter, compared to analysts' expectations of $3.33 billion. Darden Restaurants had a return on equity of 53.54% and a net margin of 8.66%.The company's revenue for the quarter was up 5.9% compared to the same quarter last year. During the same period in the prior year, the business earned $2.80 EPS. Research analysts forecast that Darden Restaurants, Inc. will post 10.62 EPS for the current fiscal year.

Insider Buying and Selling

In other Darden Restaurants news, SVP Lindsay L. Koren sold 300 shares of the stock in a transaction that occurred on Tuesday, April 7th. The shares were sold at an average price of $194.32, for a total transaction of $58,296.00. Following the transaction, the senior vice president directly owned 1,617 shares in the company, valued at $314,215.44. This trade represents a 15.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Douglas J. Milanes sold 3,620 shares of Darden Restaurants stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $202.16, for a total transaction of $731,819.20. Following the transaction, the senior vice president directly owned 274 shares in the company, valued at $55,391.84. This trade represents a 92.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.49% of the company's stock.

Key Darden Restaurants News

Here are the key news stories impacting Darden Restaurants this week:

• Positive Sentiment: Oppenheimer reaffirmed an Outperform rating and raised its price target to $235, suggesting meaningful upside from current levels. Benzinga
• Positive Sentiment: Wall Street expects earnings growth in Darden’s upcoming quarterly report, and Zacks said the company appears positioned for a potential earnings beat, which can support the stock ahead of results. Zacks
• Neutral Sentiment: MarketWatch noted Darden’s shares rose in Thursday trading, but the stock still lagged the broader market, indicating only modest momentum rather than a clear catalyst-driven move. MarketWatch
• Neutral Sentiment: Several recent analyst and preview articles highlight that investors are awaiting Darden’s fiscal Q4 results and are focused on operating metrics beyond revenue and EPS, but these pieces are more about positioning than a new fundamental development. The Globe and Mail
• Negative Sentiment: Stephens reaffirmed an Equal Weight rating with a $210 target, implying limited downside/upside from current levels and reflecting a more cautious stance than bullish peers. Tickerreport.com

Wall Street Analyst Weigh In

Several research firms recently commented on DRI. BTIG Research restated a "buy" rating and set a $225.00 target price on shares of Darden Restaurants in a research report on Friday, March 20th. Oppenheimer reaffirmed an "outperform" rating and issued a $235.00 price target on shares of Darden Restaurants in a report on Thursday. Deutsche Bank Aktiengesellschaft lifted their price target on Darden Restaurants from $222.00 to $230.00 and gave the company a "buy" rating in a research report on Friday, March 20th. Robert W. Baird boosted their price objective on Darden Restaurants from $208.00 to $215.00 and gave the stock a "neutral" rating in a report on Friday, March 20th. Finally, Stephens reaffirmed an "equal weight" rating and issued a $210.00 target price on shares of Darden Restaurants in a research note on Thursday. Eighteen equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $227.04.

About Darden Restaurants

Darden Restaurants, Inc is a multi-brand, full-service restaurant company headquartered in Orlando, Florida. The company owns and operates a portfolio of casual and fine-dining concepts that together serve millions of guests through company-owned and franchised locations. Its well-known brands include Olive Garden and LongHorn Steakhouse, alongside other dining concepts that span Italian, American, steakhouse and upscale casual formats.

Darden's restaurants provide a range of guest-facing services including dine-in, takeout, delivery and catering, and feature menus tailored to each brand's positioning—Italian-American fare at Olive Garden, steaks and grilled items at LongHorn, and more premium steakhouse and chef-driven offerings at its upscale concepts.

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