Livforsakringsbolaget Skandia Omsesidigt Raises Position in Darden Restaurants, Inc. $DRI

Key Points

• Livforsakringsbolaget Skandia Omsesidigt increased its stake in Darden Restaurants by 195.7%, owning a total of 69,731 shares valued at $15.2 million following the purchase of 46,150 shares.
• Darden Restaurants announced a $1 billion share buyback plan on June 20th, indicating management's belief that the stock is undervalued.
• The company recently raised its quarterly dividend from $1.40 to $1.50 per share, reflecting a 2.8% yield and a dividend payout ratio of 67.57%.

Livforsakringsbolaget Skandia Omsesidigt raised its position in Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 195.7% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 69,731 shares of the restaurant operator's stock after purchasing an additional 46,150 shares during the quarter. Livforsakringsbolaget Skandia Omsesidigt owned 0.06% of Darden Restaurants worth $15,199,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently made changes to their positions in DRI. Grove Bank & Trust grew its holdings in Darden Restaurants by 171.4% during the 1st quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator's stock worth $28,000 after acquiring an additional 84 shares during the last quarter. ORG Partners LLC increased its holdings in Darden Restaurants by 108.8% in the first quarter. ORG Partners LLC now owns 142 shares of the restaurant operator's stock valued at $30,000 after purchasing an additional 74 shares during the period. Centennial Bank AR bought a new position in Darden Restaurants during the 1st quarter worth $31,000. Alpine Bank Wealth Management acquired a new position in Darden Restaurants during the 1st quarter worth about $34,000. Finally, SouthState Corp bought a new stake in shares of Darden Restaurants in the 1st quarter valued at about $36,000. Institutional investors and hedge funds own 93.64% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on DRI shares. Morgan Stanley raised their price objective on Darden Restaurants from $235.00 to $238.00 and gave the stock an "overweight" rating in a research report on Friday. Argus reduced their price objective on shares of Darden Restaurants from $260.00 to $220.00 and set a "buy" rating on the stock in a research note on Friday. Barclays lowered their target price on shares of Darden Restaurants from $255.00 to $230.00 and set an "overweight" rating for the company in a research note on Friday. Guggenheim upped their price target on shares of Darden Restaurants from $220.00 to $235.00 and gave the company a "buy" rating in a research report on Wednesday. Finally, KeyCorp dropped their price objective on Darden Restaurants from $240.00 to $225.00 and set an "overweight" rating on the stock in a research note on Friday. Eighteen equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $224.21.

Insider Buying and Selling

In related news, CFO Rajesh Vennam sold 5,780 shares of the stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $222.22, for a total transaction of $1,284,431.60. Following the completion of the transaction, the chief financial officer owned 4,555 shares in the company, 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 filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Matthew R. Broad sold 6,949 shares of the business's stock in a transaction dated Monday, June 30th. The shares were sold at an average price of $218.00, for a total transaction of $1,514,882.00. Following the completion of the transaction, the senior vice president owned 14,367 shares in the company, valued at approximately $3,132,006. The trade was a 32.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 45,727 shares of company stock worth $10,022,232 in the last ninety days. Corporate insiders own 0.49% of the company's stock.

Darden Restaurants Stock Down 4.1%

NYSE DRI traded down $7.91 during trading hours on Friday, hitting $184.83. The company's stock had a trading volume of 3,333,949 shares, compared to its average volume of 1,326,084. 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 company's 50-day simple moving average is $206.86 and its two-hundred day simple moving average is $206.12. The company has a market capitalization of $21.55 billion, a PE ratio of 20.81, a price-to-earnings-growth ratio of 1.91 and a beta of 0.71. Darden Restaurants, Inc. has a 52 week low of $155.18 and a 52 week high of $228.27.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its earnings results on Thursday, September 18th. The restaurant operator reported $1.97 earnings per share for the quarter, missing analysts' consensus estimates of $2.01 by ($0.04). The company had revenue of $3.04 billion during the quarter, compared to the consensus estimate of $3.03 billion. Darden Restaurants had a net margin of 8.69% and a return on equity of 51.81%. The firm's revenue for the quarter was up 10.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.75 EPS. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. Research analysts anticipate that Darden Restaurants, Inc. will post 9.52 EPS for the current fiscal year.

Darden Restaurants Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 3rd. Shareholders 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 3.2%. The ex-dividend date is Friday, October 10th. Darden Restaurants's dividend payout ratio is 67.57%.

Darden Restaurants announced that its Board of Directors has approved a share buyback plan on Friday, June 20th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the restaurant operator to purchase up to 3.8% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

About Darden Restaurants

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.