Sumitomo Mitsui DS Asset Management Company Ltd Acquires 3,719 Shares of Darden Restaurants, Inc. $DRI

Key Points

• Sumitomo Mitsui DS Asset Management Company Ltd increased its stake in Darden Restaurants, Inc. by 7.8%, owning a total of 51,376 shares valued at approximately $11.2 million after acquiring an additional 3,719 shares.
• Darden Restaurants announced a $1 billion share repurchase plan, indicating management's belief that its shares are undervalued, along with a quarterly dividend of $1.50 payable on November 3rd.
• The restaurant operator reported $1.97 earnings per share for the recent quarter, missing estimates slightly, while quarterly revenues increased by 10.4% compared to the same period last year.

Sumitomo Mitsui DS Asset Management Company Ltd raised its holdings in Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 7.8% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 51,376 shares of the restaurant operator's stock after buying an additional 3,719 shares during the quarter. Sumitomo Mitsui DS Asset Management Company Ltd's holdings in Darden Restaurants were worth $11,198,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in DRI. Teza Capital Management LLC acquired a new position in shares of Darden Restaurants in the 4th quarter valued at $205,000. Tidal Investments LLC raised its stake in shares of Darden Restaurants by 6.5% in the 4th quarter. Tidal Investments LLC now owns 3,622 shares of the restaurant operator's stock valued at $676,000 after buying an additional 222 shares in the last quarter. Vident Advisory LLC raised its stake in shares of Darden Restaurants by 4.5% in the 4th quarter. Vident Advisory LLC now owns 2,511 shares of the restaurant operator's stock valued at $469,000 after buying an additional 109 shares in the last quarter. Woodline Partners LP acquired a new position in shares of Darden Restaurants in the 4th quarter valued at $843,000. Finally, Waverly Advisors LLC acquired a new position in shares of Darden Restaurants in the 4th quarter valued at $334,000. Institutional investors and hedge funds own 93.64% of the company's stock.

Insider Transactions at Darden Restaurants

In other Darden Restaurants news, CFO Rajesh Vennam sold 5,780 shares of the business's stock in a transaction that occurred on Tuesday, June 24th. The stock was sold at an average price of $222.22, for a total value of $1,284,431.60. Following the sale, the chief financial officer owned 4,555 shares in the company, valued at approximately $1,012,212.10. The trade was a 55.93% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Susan M. Connelly sold 4,735 shares of the company's stock in a transaction that occurred on Tuesday, June 24th. The stock was sold at an average price of $223.78, for a total value of $1,059,598.30. Following the sale, the senior vice president owned 4,602 shares in the company, valued at approximately $1,029,835.56. This represents a 50.71% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 45,727 shares of company stock worth $10,022,232. Corporate insiders own 0.49% of the company's stock.

Darden Restaurants Price Performance

Shares of DRI stock opened at $192.65 on Friday. The stock has a 50-day moving average price of $206.86 and a 200 day moving average price of $206.12. The company has a quick ratio of 0.28, a current ratio of 0.42 and a debt-to-equity ratio of 0.92. The firm has a market cap of $22.46 billion, a price-to-earnings ratio of 21.70, a PEG ratio of 1.91 and a beta of 0.71. 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 posted its earnings results on Thursday, September 18th. The restaurant operator reported $1.97 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.01 by ($0.04). The company had revenue of $3.04 billion for the quarter, compared to analyst estimates of $3.03 billion. Darden Restaurants had a return on equity of 51.81% and a net margin of 8.69%.Darden Restaurants's quarterly revenue was up 10.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $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 announced that its board has authorized a share repurchase plan on Friday, June 20th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the restaurant operator to buy up to 3.8% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management believes its shares are undervalued.

Darden Restaurants Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Shareholders of record on Friday, October 10th will be paid a $1.50 dividend. The ex-dividend date is Friday, October 10th. This represents a $6.00 annualized dividend and a yield of 3.1%. Darden Restaurants's payout ratio is presently 67.57%.

Wall Street Analyst Weigh In

DRI has been the subject of a number of recent research reports. KeyCorp dropped their price objective on shares of Darden Restaurants from $245.00 to $240.00 and set an "overweight" rating for the company in a research note on Wednesday, September 10th. BMO Capital Markets lifted their price objective on Darden Restaurants from $190.00 to $215.00 and gave the company a "market perform" rating in a report on Wednesday, June 25th. UBS Group lifted their price objective on Darden Restaurants from $225.00 to $245.00 and gave the company a "buy" rating in a report on Monday, June 16th. TD Cowen reissued a "hold" rating and set a $235.00 price objective on shares of Darden Restaurants in a report on Thursday. Finally, Raymond James Financial lifted their price objective on Darden Restaurants from $230.00 to $240.00 and gave the company an "outperform" rating in a report on Monday, June 23rd. Sixteen analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $228.81.

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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