Private Advisor Group LLC Reduces Stock Holdings in Darden Restaurants, Inc. (NYSE:DRI)

Key Points

• Private Advisor Group LLC reduced its holdings in Darden Restaurants, Inc. by 17.0% in the 1st quarter, now owning 6,729 shares valued at $1,398,000.
• Several hedge funds increased their positions in Darden, with Whipplewood Advisors lifting their holdings by an impressive 296.0%.
• Darden Restaurants announced a quarterly dividend increase to $1.50 per share and initiated a $1.00 billion share repurchase program.

Private Advisor Group LLC cut its stake in Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 17.0% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 6,729 shares of the restaurant operator's stock after selling 1,382 shares during the period. Private Advisor Group LLC's holdings in Darden Restaurants were worth $1,398,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also recently made changes to their positions in DRI. Migdal Insurance & Financial Holdings Ltd. acquired a new position in Darden Restaurants in the first quarter valued at approximately $44,000. Jennison Associates LLC lifted its stake in shares of Darden Restaurants by 7.6% in the 1st quarter. Jennison Associates LLC now owns 28,495 shares of the restaurant operator's stock valued at $5,920,000 after purchasing an additional 2,024 shares during the last quarter. Retirement Planning Co of New England Inc. purchased a new position in shares of Darden Restaurants during the 1st quarter worth $2,664,000. Kingsview Wealth Management LLC acquired a new stake in shares of Darden Restaurants during the 1st quarter worth about $252,000. Finally, Graypoint LLC acquired a new stake in shares of Darden Restaurants during the 1st quarter worth about $243,000. Institutional investors and hedge funds own 93.64% of the company's stock.

Insider Buying and Selling

In other news, CFO Rajesh Vennam sold 5,780 shares of the business's 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 transaction, the chief financial officer directly owned 4,555 shares in the company, valued at $1,012,212.10. The trade was a 55.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Douglas J. Milanes sold 11,948 shares of the company's stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $222.08, for a total value of $2,653,411.84. Following the transaction, the senior vice president directly owned 147 shares in the company, valued at $32,645.76. This represents a 98.78% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 43,714 shares of company stock worth $9,609,494. 0.58% of the stock is currently owned by insiders.

Darden Restaurants Stock Performance

Shares of DRI traded down $1.31 during mid-day trading on Monday, reaching $203.17. 1,224,855 shares of the company's stock were exchanged, compared to its average volume of 1,362,932. The business's fifty day simple moving average is $214.24 and its 200-day simple moving average is $202.32. The stock has a market capitalization of $23.78 billion, a PE ratio of 22.88, a price-to-earnings-growth ratio of 1.88 and a beta of 0.74. Darden Restaurants, Inc. has a 52-week low of $140.10 and a 52-week high of $228.27. The company has a debt-to-equity ratio of 0.92, a current ratio of 0.42 and a quick ratio of 0.28.

Darden Restaurants (NYSE:DRI - Get Free Report) last issued its quarterly earnings data on Friday, June 20th. The restaurant operator reported $2.98 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.97 by $0.01. Darden Restaurants had a net margin of 8.69% and a return on equity of 51.81%. The company had revenue of $3.27 billion for the quarter, compared to the consensus estimate of $3.25 billion. During the same period last year, the firm posted $2.65 EPS. Darden Restaurants's revenue for the quarter was up 10.6% on a year-over-year basis. On average, equities research analysts expect that Darden Restaurants, Inc. will post 9.52 earnings per share for the current year.

Darden Restaurants declared that its Board of Directors has authorized a stock repurchase program on Friday, June 20th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the restaurant operator to repurchase up to 3.8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

Darden Restaurants Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 1st. Stockholders of record on Thursday, July 10th will be paid a $1.50 dividend. This represents a $6.00 annualized dividend and a dividend yield of 2.95%. The ex-dividend date of this dividend is Thursday, July 10th. This is a boost from Darden Restaurants's previous quarterly dividend of $1.40. Darden Restaurants's dividend payout ratio (DPR) is 67.57%.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. Melius Research raised shares of Darden Restaurants to a "hold" rating in a research note on Monday, July 14th. Evercore ISI lifted their target price on shares of Darden Restaurants from $230.00 to $250.00 and gave the company an "outperform" rating in a report on Monday, June 16th. Truist Financial boosted their target price on Darden Restaurants from $230.00 to $252.00 and gave the company a "buy" rating in a research report on Wednesday, June 18th. Wells Fargo & Company upped their price target on Darden Restaurants from $200.00 to $225.00 and gave the stock an "equal weight" rating in a research note on Tuesday, June 17th. Finally, Oppenheimer lifted their price objective on Darden Restaurants from $230.00 to $250.00 and gave the company an "outperform" rating in a research note on Wednesday, June 18th. Twelve equities research analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $225.19.

Darden Restaurants Company 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.