Nykredit A S Invests $9.27 Million in Darden Restaurants, Inc. $DRI

Key Points

• Nykredit A/S acquired 44,983 shares of Darden Restaurants in the second quarter, valued at approximately $9.27 million. Institutional investors collectively own 93.64% of the company.
• Analyst sentiment is favorable, with a consensus “Moderate Buy” rating and an average price target of $232.86. Recent analysts raised targets as high as $250.
• Darden reported quarterly earnings of $3.66 per share, slightly exceeding expectations, while revenue rose 13.7% year over year to $3.72 billion. The company also increased its quarterly dividend to $1.62 per share, although insiders sold approximately $14.6 million of stock during the quarter.

Nykredit A S acquired a new stake in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 44,983 shares of the restaurant operator's stock, valued at approximately $9,267,000.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in DRI. Cary Street Partners Investment Advisory LLC raised its stake in Darden Restaurants by 4.7% during the 4th quarter. Cary Street Partners Investment Advisory LLC now owns 1,144 shares of the restaurant operator's stock valued at $211,000 after buying an additional 51 shares during the last quarter. HHM Wealth Advisors LLC lifted its holdings in shares of Darden Restaurants by 44.8% during the 1st quarter. HHM Wealth Advisors LLC now owns 181 shares of the restaurant operator's stock valued at $35,000 after buying an additional 56 shares during the period. Cullen Frost Bankers Inc. boosted its stake in shares of Darden Restaurants by 7.0% in the 4th quarter. Cullen Frost Bankers Inc. now owns 950 shares of the restaurant operator's stock worth $175,000 after buying an additional 62 shares during the last quarter. Moody National Bank Trust Division boosted its stake in shares of Darden Restaurants by 1.1% in the 2nd quarter. Moody National Bank Trust Division now owns 5,789 shares of the restaurant operator's stock worth $1,193,000 after buying an additional 62 shares during the last quarter. Finally, GTS Securities LLC grew its holdings in shares of Darden Restaurants by 5.5% in the second quarter. GTS Securities LLC now owns 1,245 shares of the restaurant operator's stock worth $256,000 after acquiring an additional 65 shares during the period. Institutional investors own 93.64% of the company's stock.

Analyst Ratings Changes

A number of analysts recently commented on the company. Guggenheim upped their price objective on Darden Restaurants from $230.00 to $235.00 and gave the company a "buy" rating in a research report on Wednesday, June 24th. KeyCorp boosted their price target on Darden Restaurants from $228.00 to $237.00 and gave the company an "overweight" rating in a research note on Thursday, August 27th. Robert W. Baird raised shares of Darden Restaurants from a "neutral" rating to an "outperform" rating and upped their price target for the company from $220.00 to $250.00 in a research report on Monday, August 24th. Citigroup increased their price objective on shares of Darden Restaurants from $245.00 to $248.00 and gave the stock a "buy" rating in a research note on Friday, September 11th. Finally, BTIG Research raised their price objective on shares of Darden Restaurants from $225.00 to $235.00 and gave the stock a "buy" rating in a report on Friday, June 26th. Eighteen analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat, Darden Restaurants presently has a consensus rating of "Moderate Buy" and a consensus target price of $232.86.

Darden Restaurants Trading Up 0.1%

NYSE:DRI opened at $209.44 on Monday. Darden Restaurants, Inc. has a one year low of $169.00 and a one year high of $229.76. The business has a fifty day moving average price of $210.90 and a 200-day moving average price of $204.60. The firm has a market capitalization of $23.89 billion, a price-to-earnings ratio of 20.18, a price-to-earnings-growth ratio of 1.97 and a beta of 0.60. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.31 and a quick ratio of 0.21.

Darden Restaurants (NYSE:DRI - Get Free Report) last released its earnings results on Thursday, June 25th. The restaurant operator reported $3.66 earnings per share for the quarter, beating the consensus estimate of $3.63 by $0.03. Darden Restaurants had a return on equity of 57.44% and a net margin of 9.13%.The company had revenue of $3.72 billion for the quarter, compared to the consensus estimate of $3.73 billion. During the same period in the previous year, the business earned $2.98 earnings per share. Darden Restaurants's quarterly 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. Sell-side analysts forecast that Darden Restaurants, Inc. will post 11.26 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 given a dividend of $1.62 per share. This represents a $6.48 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend was Friday, July 10th. This is an increase from Darden Restaurants's previous quarterly dividend of $1.50. Darden Restaurants's payout ratio is presently 62.43%.

Key Darden Restaurants News

Here are the key news stories impacting Darden Restaurants this week:

• Positive Sentiment: Darden recently increased its dividend by 8%, strengthening the investment case for income-oriented shareholders and signaling management confidence in cash generation. The comparison with McDonald’s also highlights Darden’s relatively attractive dividend outlook. Darden vs. McDonald's: Which Restaurant Dividend Belongs in a Retirement Portfolio
• Positive Sentiment: Analyst sentiment remains supportive: DRI carries an average “Moderate Buy” rating, while Oppenheimer expects the stock to rise. Seaport Global also initiated coverage with a Buy rating, potentially adding buying interest. Darden Receives Moderate Buy Rating
• Neutral Sentiment: Wall Street expects earnings growth in the coming report, making same-restaurant sales, margins, new restaurant openings and productivity improvements important catalysts for the shares. Darden Prepares to Report Q1 Results
• Negative Sentiment: Inflation and affordability pressures could limit customer traffic and restaurant-level margins. A separate earnings preview cautions that Darden may not have the typical combination of factors needed for a quarterly earnings beat, increasing the risk of disappointment. Darden Reports Next Week

Insider Activity

In other Darden Restaurants news, insider Laura B. Williamson sold 1,110 shares of the firm's stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $204.32, for a total transaction of $226,795.20. Following the sale, the insider owned 10,754 shares in the company, valued at approximately $2,197,257.28. This trade represents a 9.36% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Ricardo Cardenas sold 39,134 shares of Darden Restaurants stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $209.06, for a total transaction of $8,181,354.04. Following the transaction, the chief executive officer directly owned 86,146 shares in the company, valued at $18,009,682.76. This represents a 31.24% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 70,185 shares of company stock worth $14,636,984. 0.67% of the stock is currently owned by corporate insiders.

About Darden Restaurants

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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