Mirae Asset Global Investments Co. Ltd. Buys 11,212 Shares of Darden Restaurants, Inc. $DRI

Key Points

• Mirae Asset Global Investments Co. Ltd. increased its stake in Darden Restaurants by 10.2% during the second quarter, acquiring an additional 11,212 shares, bringing its total ownership to approximately 121,542 shares valued at $26.5 million.
• Darden Restaurants announced a quarterly dividend of $1.50 per share, with a planned payout set for November 3rd, and initiated a $1 billion stock buyback program indicating management’s belief that the shares are undervalued.
• Analysts have a consensus rating of "Moderate Buy" for Darden Restaurants, with an average target price of $225.96, reflecting positive sentiment among investment analysts regarding the company’s stock.

Mirae Asset Global Investments Co. Ltd. raised its stake in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 10.2% in the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 121,542 shares of the restaurant operator's stock after acquiring an additional 11,212 shares during the quarter. Mirae Asset Global Investments Co. Ltd. owned approximately 0.10% of Darden Restaurants worth $26,493,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Wealth Enhancement Advisory Services LLC lifted its holdings in shares of Darden Restaurants by 31.8% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 15,230 shares of the restaurant operator's stock valued at $3,164,000 after acquiring an additional 3,677 shares during the period. Choreo LLC lifted its holdings in shares of Darden Restaurants by 46.0% during the first quarter. Choreo LLC now owns 16,248 shares of the restaurant operator's stock valued at $3,376,000 after acquiring an additional 5,119 shares during the period. Principal Financial Group Inc. raised its holdings in shares of Darden Restaurants by 5.1% in the first quarter. Principal Financial Group Inc. now owns 162,340 shares of the restaurant operator's stock valued at $33,728,000 after buying an additional 7,902 shares during the last quarter. Golden State Wealth Management LLC raised its holdings in shares of Darden Restaurants by 12.4% in the first quarter. Golden State Wealth Management LLC now owns 924 shares of the restaurant operator's stock valued at $192,000 after buying an additional 102 shares during the last quarter. Finally, GAMMA Investing LLC raised its holdings in shares of Darden Restaurants by 124.2% in the first quarter. GAMMA Investing LLC now owns 4,471 shares of the restaurant operator's stock valued at $929,000 after buying an additional 2,477 shares during the last quarter. 93.64% of the stock is owned by institutional investors.

Analyst Ratings Changes

DRI has been the subject of a number of research analyst reports. Melius initiated coverage on Darden Restaurants in a report on Monday, July 14th. They issued a "hold" rating and a $240.00 price target for the company. TD Securities reaffirmed a "hold" rating and issued a $215.00 price target on shares of Darden Restaurants in a report on Friday, June 20th. Guggenheim lifted their price target on Darden Restaurants from $220.00 to $235.00 and gave the company a "buy" rating in a report on Wednesday, September 17th. Jefferies Financial Group raised Darden Restaurants from an "underperform" rating to a "hold" rating and lifted their price target for the company from $165.00 to $210.00 in a report on Friday, June 13th. Finally, Oppenheimer lifted their price target on Darden Restaurants from $230.00 to $250.00 and gave the company an "outperform" rating in a report on Wednesday, June 18th. Nineteen investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $225.96.

Insider Activity

In other news, insider Laura B. Williamson sold 1,157 shares of the business's stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $204.70, for a total transaction of $236,837.90. Following the completion of the transaction, the insider directly owned 10,632 shares in the company, valued at approximately $2,176,370.40. The trade was a 9.81% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In the last three months, insiders sold 2,013 shares of company stock worth $412,738. 0.49% of the stock is currently owned by insiders.

Darden Restaurants Price Performance

Shares of DRI stock opened at $193.33 on Friday. The stock has a 50-day moving average price of $202.83 and a 200 day moving average price of $206.04. The company has a quick ratio of 0.27, a current ratio of 0.40 and a debt-to-equity ratio of 0.96. The firm has a market cap of $22.49 billion, a price-to-earnings ratio of 20.72, a PEG ratio of 1.77 and a beta of 0.77. Darden Restaurants, Inc. has a 12 month low of $155.18 and a 12 month high of $228.27.

Darden Restaurants (NYSE:DRI - Get Free Report) last announced its quarterly earnings data on Thursday, September 18th. The restaurant operator reported $1.97 EPS for the quarter, missing analysts' consensus estimates of $2.01 by ($0.04). The firm had revenue of $3.04 billion during the quarter, compared to analyst estimates of $3.03 billion. Darden Restaurants had a return on equity of 52.35% and a net margin of 8.90%.Darden Restaurants's revenue for the quarter was up 10.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.75 earnings per share. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. Research analysts expect that Darden Restaurants, Inc. will post 9.52 EPS for the current year.

Darden Restaurants Dividend Announcement

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

Darden Restaurants declared that its board has initiated a stock buyback program on Friday, June 20th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the restaurant operator to purchase up to 3.8% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's management believes its shares are 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.

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