Magnetar Financial LLC Acquires New Holdings in Darden Restaurants, Inc. $DRI

Key Points

• Magnetar Financial LLC has acquired a new stake in Darden Restaurants, purchasing 11,973 shares valued at approximately $2.49 million.
• Darden Restaurants reported a 10.6% year-over-year revenue increase to $3.27 billion and earnings per share of $2.98, exceeding analyst expectations.
• The company announced a $1 billion share repurchase plan, set to buy back up to 3.8% of its outstanding shares, signaling confidence in its stock valuation.

Magnetar Financial LLC purchased a new stake in Darden Restaurants, Inc. (NYSE:DRI - Free Report) during the first quarter, according to the company in its most recent filing with the SEC. The firm purchased 11,973 shares of the restaurant operator's stock, valued at approximately $2,488,000.

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

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on DRI. UBS Group lifted their target price on shares of Darden Restaurants from $225.00 to $245.00 and gave the company a "buy" rating in a report on Monday, June 16th. Citigroup boosted their price objective on shares of Darden Restaurants from $245.00 to $253.00 and gave the company a "buy" rating in a research report on Monday, June 23rd. Raymond James Financial boosted their target price on shares of Darden Restaurants from $230.00 to $240.00 and gave the company an "outperform" rating in a research note on Monday, June 23rd. Stephens increased their target price on shares of Darden Restaurants from $200.00 to $212.00 and gave the company an "equal weight" rating in a research note on Monday, June 23rd. Finally, Bank of America increased their target price on shares of Darden Restaurants from $252.00 to $253.00 and gave the company a "buy" rating in a research note on Monday, June 23rd. Sixteen equities research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $225.19.

Darden Restaurants Stock Performance

Darden Restaurants stock traded up $1.06 during mid-day trading on Tuesday, reaching $208.00. The company had a trading volume of 783,248 shares, compared to its average volume of 1,300,107. The company has a quick ratio of 0.28, a current ratio of 0.42 and a debt-to-equity ratio of 0.92. Darden Restaurants, Inc. has a 52 week low of $153.98 and a 52 week high of $228.27. The company has a 50 day moving average of $209.05 and a 200-day moving average of $205.02. The firm has a market cap of $24.25 billion, a price-to-earnings ratio of 23.42, a PEG ratio of 1.90 and a beta of 0.71.

Darden Restaurants (NYSE:DRI - Get Free Report) last issued its quarterly earnings results 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. Darden Restaurants had a net margin of 8.69% and a return on equity of 51.81%. The firm had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.25 billion. During the same period in the prior year, the firm earned $2.65 EPS. The business's revenue was up 10.6% on a year-over-year basis. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. On average, sell-side analysts expect that Darden Restaurants, Inc. will post 9.52 EPS for the current fiscal year.

Darden Restaurants Increases Dividend

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

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

Insider Transactions at Darden Restaurants

In other news, insider Laura B. Williamson sold 523 shares of Darden Restaurants stock in a transaction that occurred on Wednesday, July 30th. The shares were sold at an average price of $204.65, for a total transaction of $107,031.95. Following the completion of the sale, the insider owned 5,423 shares in the company, valued at $1,109,816.95. The trade was a 8.80% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, SVP Matthew R. Broad sold 733 shares of Darden Restaurants stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $218.50, for a total transaction of $160,160.50. Following the sale, the senior vice president owned 14,367 shares of the company's stock, valued at approximately $3,139,189.50. This represents a 4.85% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 45,727 shares of company stock worth $10,022,232. Corporate insiders own 0.49% of the company's stock.

Darden Restaurants 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.