National Pension Service Buys 215,537 Shares of Darden Restaurants, Inc. $DRI

Key Points

• National Pension Service increased its Darden Restaurants stake by 637.5% in the second quarter, buying 215,537 additional shares and bringing its holdings to 249,346 shares worth about $51.4 million. Institutional investors collectively own 93.64% of Darden’s stock.
• Darden reported quarterly earnings of $3.66 per share, slightly ahead of estimates, while revenue rose 13.7% year over year to $3.72 billion. The company also increased its quarterly dividend to $1.62 per share, equivalent to a 3.1% yield.
• DRI shares opened at $209.83, below the analyst consensus price target of $230.79; analysts collectively rate the stock “Moderate Buy.” Meanwhile, company insiders sold 70,185 shares worth approximately $14.6 million during the last quarter.

National Pension Service grew its stake in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 637.5% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 249,346 shares of the restaurant operator's stock after acquiring an additional 215,537 shares during the period. National Pension Service owned about 0.22% of Darden Restaurants worth $51,368,000 at the end of the most recent reporting period.

A number of other hedge funds also recently modified their holdings of the stock. Nicholas Investment Partners LP bought a new position in Darden Restaurants in the 2nd quarter worth approximately $923,000. Integrity Alliance LLC. lifted its holdings in shares of Darden Restaurants by 2,139.4% in the fourth quarter. Integrity Alliance LLC. now owns 59,837 shares of the restaurant operator's stock worth $11,011,000 after buying an additional 57,165 shares in the last quarter. Fideuram Intesa Sanpaolo Private Banking S.P.A. purchased a new stake in Darden Restaurants in the 4th quarter worth approximately $1,657,000. Northwestern Mutual Wealth Management Co. boosted its stake in Darden Restaurants by 224.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 8,910 shares of the restaurant operator's stock valued at $1,640,000 after buying an additional 6,166 shares during the period. Finally, BNP Paribas Financial Markets grew its holdings in shares of Darden Restaurants by 22.3% during the fourth quarter. BNP Paribas Financial Markets now owns 293,895 shares of the restaurant operator's stock worth $54,083,000 after purchasing an additional 53,549 shares in the last quarter. Institutional investors own 93.64% of the company's stock.

Insider Buying and Selling

In other Darden Restaurants news, CFO Rajesh Vennam sold 8,478 shares of the business's stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $210.00, for a total value of $1,780,380.00. Following the transaction, the chief financial officer owned 8,569 shares in the company, valued at approximately $1,799,490. The trade was a 49.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Susan M. Connelly sold 9,930 shares of the company's stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $206.21, for a total transaction of $2,047,665.30. Following the transaction, the senior vice president directly owned 4,165 shares of the company's stock, valued at approximately $858,864.65. This trade represents a 70.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 70,185 shares of company stock valued at $14,636,984 over the last quarter. Company insiders own 0.67% of the company's stock.

Darden Restaurants Price Performance

Shares of Darden Restaurants stock opened at $209.83 on Friday. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.21 and a current ratio of 0.31. Darden Restaurants, Inc. has a 52-week low of $169.00 and a 52-week high of $229.76. The company has a fifty day moving average of $210.14 and a 200-day moving average of $204.75. The stock has a market capitalization of $23.94 billion, a price-to-earnings ratio of 20.21, a price-to-earnings-growth ratio of 1.98 and a beta of 0.60.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its quarterly earnings results on Thursday, June 25th. The restaurant operator reported $3.66 earnings per share for the quarter, topping the consensus estimate of $3.63 by $0.03. The business had revenue of $3.72 billion during the quarter, compared to the consensus estimate of $3.73 billion. Darden Restaurants had a net margin of 9.13% and a return on equity of 57.44%. The firm's revenue for the quarter was up 13.7% on a year-over-year basis. During the same period in the previous year, the firm posted $2.98 earnings per share. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. Equities research analysts expect that Darden Restaurants, Inc. will post 11.25 EPS for the current year.

Darden Restaurants Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Stockholders of record on Friday, July 10th were paid a dividend of $1.62 per share. This represents a $6.48 dividend on an annualized basis and a dividend yield of 3.1%. This is a boost from Darden Restaurants's previous quarterly dividend of $1.50. The ex-dividend date of this dividend was Friday, July 10th. Darden Restaurants's payout ratio is currently 62.43%.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on DRI shares. Evercore lowered shares of Darden Restaurants from an "outperform" rating to an "in-line" rating and set a $230.00 target price for the company. in a research report on Tuesday, June 23rd. Deutsche Bank Aktiengesellschaft increased their price target on shares of Darden Restaurants from $230.00 to $236.00 and gave the stock a "buy" rating in a report on Friday, June 26th. Weiss Ratings cut shares of Darden Restaurants from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, July 28th. Citigroup lifted their price objective on shares of Darden Restaurants from $245.00 to $248.00 and gave the stock a "buy" rating in a report on Friday. Finally, BMO Capital Markets reissued a "market perform" rating on shares of Darden Restaurants in a research note on Monday, June 22nd. Eighteen research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $230.79.

Darden Restaurants Profile

Darden Restaurants, Inc NYSE: DRI is a full-service restaurant company headquartered in Orlando, Florida. It operates and franchises a portfolio of dining brands serving a range of cuisines, price points and occasions, with restaurants primarily located in the United States and select international markets.

Its restaurant portfolio includes Olive Garden, an Italian-American dining chain; LongHorn Steakhouse; Cheddar's Scratch Kitchen; Yard House; The Capital Grille; Seasons 52; Bahama Breeze; Eddie V's; Ruth's Chris Steak House; and Chuy's.

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