Russell Investments Group Ltd. Sells 2,894 Shares of Darden Restaurants, Inc. $DRI

Key Points

• Russell Investments Group Ltd. reduced its stake in Darden Restaurants, Inc. by 7.8%, now owning 33,997 shares valued at $7,045,000.
• Darden Restaurants recently increased its quarterly dividend to $1.50 from $1.40, representing an annualized yield of 2.9%.
• The company reported $2.98 earnings per share for the last quarter, exceeding analyst estimates by $0.01 and demonstrating a year-over-year revenue increase of 10.6%.

Russell Investments Group Ltd. decreased its holdings in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 7.8% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 33,997 shares of the restaurant operator's stock after selling 2,894 shares during the period. Russell Investments Group Ltd.'s holdings in Darden Restaurants were worth $7,045,000 as of its most recent filing with the Securities and Exchange Commission.

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

Darden Restaurants Stock Up 0.9%

NYSE:DRI traded up $1.95 on Friday, hitting $208.49. 863,641 shares of the company's stock traded hands, compared to its average volume of 1,008,201. The company has a market cap of $24.31 billion, a PE ratio of 23.48, a price-to-earnings-growth ratio of 1.92 and a beta of 0.75. Darden Restaurants, Inc. has a 1 year low of $153.74 and a 1 year high of $228.27. The company has a current ratio of 0.42, a quick ratio of 0.28 and a debt-to-equity ratio of 0.92. The firm has a 50-day moving average price of $211.11 and a 200-day moving average price of $204.48.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its quarterly earnings results on Friday, June 20th. The restaurant operator reported $2.98 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 business had revenue of $3.27 billion during the quarter, compared to analysts' expectations of $3.25 billion. During the same period last year, the company posted $2.65 earnings per share. The firm's quarterly revenue was up 10.6% compared to the same quarter last year. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. Equities analysts anticipate that Darden Restaurants, Inc. will post 9.52 EPS for the current fiscal year.

Darden Restaurants Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 1st. Stockholders of record on Thursday, July 10th were paid a $1.50 dividend. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.9%. This is a boost from Darden Restaurants's previous quarterly dividend of $1.40. The ex-dividend date of this dividend was Thursday, July 10th. Darden Restaurants's dividend payout ratio (DPR) is currently 67.57%.

Darden Restaurants announced that its board has initiated a share buyback plan on Friday, June 20th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the restaurant operator to purchase up to 3.8% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

DRI has been the topic of a number of recent research reports. Oppenheimer lifted their target price on Darden Restaurants from $230.00 to $250.00 and gave the stock an "outperform" rating in a report on Wednesday, June 18th. Melius Research raised Darden Restaurants to a "hold" rating in a research note on Monday, July 14th. TD Securities restated a "hold" rating and set a $215.00 price objective on shares of Darden Restaurants in a report on Friday, June 20th. Evercore ISI upped their price objective on shares of Darden Restaurants from $230.00 to $250.00 and gave the company an "outperform" rating in a research note on Monday, June 16th. Finally, Melius assumed coverage on shares of Darden Restaurants in a research report on Monday, July 14th. They issued a "hold" rating and a $240.00 target price on the stock. Sixteen investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $225.19.

Insiders Place Their Bets

In related news, SVP Susan M. Connelly sold 4,735 shares of Darden Restaurants stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $223.78, for a total transaction of $1,059,598.30. Following the completion of the sale, the senior vice president owned 4,602 shares of the company's stock, valued at approximately $1,029,835.56. This trade represents a 50.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Todd Burrowes sold 13,569 shares of the company's stock in a transaction dated Monday, June 30th. The stock was sold at an average price of $216.45, for a total value of $2,937,010.05. Following the completion of the transaction, the insider directly owned 46,327 shares in the company, valued at approximately $10,027,479.15. The trade was a 22.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 45,727 shares of company stock valued at $10,022,232 in the last three months. Company insiders own 0.49% of the company's stock.

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.