Levin Capital Strategies L.P. Purchases New Holdings in Darden Restaurants, Inc. $DRI

Key Points

• Levin Capital Strategies opened a new position in Darden Restaurants during Q1, buying 30,909 shares valued at about $6.06 million.
• Darden reported better-than-expected quarterly earnings, with EPS of $3.66 versus estimates of $3.63, and revenue up 13.7% year over year to $3.72 billion.
• The company also raised its quarterly dividend to $1.62 per share, and Wall Street remains cautiously optimistic with a consensus Moderate Buy rating and an average price target of $228.88.

Levin Capital Strategies L.P. purchased a new position in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm purchased 30,909 shares of the restaurant operator's stock, valued at approximately $6,059,000.

Several other hedge funds and other institutional investors have also bought and sold shares of the business. Torren Management LLC bought a new stake in shares of Darden Restaurants during the 4th quarter worth $26,000. Union Savings Bank purchased a new position in shares of Darden Restaurants in the 4th quarter worth about $28,000. Thurston Springer Miller Herd & Titak Inc. grew its position in Darden Restaurants by 926.7% during the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 154 shares of the restaurant operator's stock valued at $28,000 after buying an additional 139 shares during the period. BOK Financial Private Wealth Inc. bought a new position in Darden Restaurants during the fourth quarter valued at about $29,000. Finally, DV Equities LLC purchased a new stake in Darden Restaurants during the fourth quarter worth about $30,000. Hedge funds and other institutional investors own 93.64% of the company's stock.

Insider Activity

In related news, SVP Susan M. Connelly sold 9,930 shares of the business's stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $206.21, for a total transaction of $2,047,665.30. Following the sale, the senior vice president directly owned 4,165 shares in the company, valued at approximately $858,864.65. The trade was a 70.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.49% of the company's stock.

Wall Street Analysts Forecast Growth

DRI has been the topic of a number of research analyst reports. Guggenheim boosted their target price on shares of Darden Restaurants from $230.00 to $235.00 and gave the company a "buy" rating in a research note on Wednesday, June 24th. BMO Capital Markets reaffirmed a "market perform" rating on shares of Darden Restaurants in a report on Monday, June 22nd. Bank of America lifted their price target on shares of Darden Restaurants from $272.00 to $276.00 and gave the stock a "buy" rating in a report on Friday, June 5th. Robert W. Baird upped their price objective on Darden Restaurants from $210.00 to $220.00 and gave the company a "neutral" rating in a research note on Friday, June 26th. Finally, BTIG Research increased their price objective on Darden Restaurants from $225.00 to $235.00 and gave the company a "buy" rating in a report on Friday, June 26th. Seventeen analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $228.88.

Darden Restaurants Price Performance

DRI opened at $193.91 on Thursday. The firm has a 50-day moving average price of $202.77 and a 200-day moving average price of $202.93. Darden Restaurants, Inc. has a twelve month low of $169.00 and a twelve month high of $220.65. The company has a quick ratio of 0.21, a current ratio of 0.31 and a debt-to-equity ratio of 0.74. The company has a market capitalization of $22.21 billion, a price-to-earnings ratio of 18.68, a PEG ratio of 1.92 and a beta of 0.60.

Darden Restaurants (NYSE:DRI - Get Free Report) last announced its quarterly earnings results on Thursday, June 25th. The restaurant operator reported $3.66 EPS for the quarter, beating analysts' consensus estimates of $3.63 by $0.03. Darden Restaurants had a net margin of 9.13% and a return on equity of 57.44%. The company had revenue of $3.72 billion for the quarter, compared to analysts' expectations of $3.73 billion. During the same period in the prior year, the company posted $2.98 EPS. Darden Restaurants's revenue was up 13.7% compared to the same quarter last year. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. Equities analysts expect that Darden Restaurants, Inc. will post 11.28 EPS for the current year.

Darden Restaurants Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be given a $1.62 dividend. This represents a $6.48 annualized dividend and a dividend yield of 3.3%. This is a boost from Darden Restaurants's previous quarterly dividend of $1.50. The ex-dividend date is Friday, July 10th. Darden Restaurants's dividend payout ratio (DPR) is presently 62.43%.

Darden Restaurants Profile

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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