Tidal Investments LLC Acquires 6,830 Shares of Darden Restaurants, Inc. $DRI

Key Points

• Tidal Investments increased its Darden Restaurants stake by 34.9% in the second quarter, acquiring 6,830 shares for a total holding of 26,408 shares valued at approximately $5.44 million. Institutional investors own 93.64% of Darden’s stock.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $230.79, compared with the stock’s reported price of $209.83.
• Darden reported quarterly adjusted earnings of $3.66 per share, narrowly exceeding estimates, while revenue rose 13.7% year over year to $3.72 billion. The company also raised its quarterly dividend to $1.62, representing a 3.1% annualized yield.

Tidal Investments LLC grew its holdings in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 34.9% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 26,408 shares of the restaurant operator's stock after buying an additional 6,830 shares during the quarter. Tidal Investments LLC's holdings in Darden Restaurants were worth $5,440,000 at the end of the most recent reporting period.

Several other hedge funds also recently modified their holdings of DRI. Union Savings Bank acquired a new position in Darden Restaurants during the fourth quarter valued at approximately $28,000. Bell Investment Advisors Inc acquired a new stake in shares of Darden Restaurants in the 2nd quarter valued at approximately $28,000. BOK Financial Private Wealth Inc. acquired a new stake in shares of Darden Restaurants in the 4th quarter valued at approximately $29,000. DV Equities LLC bought a new position in shares of Darden Restaurants in the fourth quarter valued at $30,000. Finally, Transamerica Financial Advisors LLC acquired a new position in Darden Restaurants during the second quarter worth $34,000. Institutional investors own 93.64% of the company's stock.

Analysts Set New Price Targets

A number of analysts have commented on the stock. Argus increased their price target on shares of Darden Restaurants from $240.00 to $245.00 and gave the company a "buy" rating in a research note on Tuesday, June 30th. UBS Group reiterated a "buy" rating on shares of Darden Restaurants in a research note on Friday. Oppenheimer reissued an "outperform" rating and set a $235.00 price target on shares of Darden Restaurants in a research report on Thursday, June 18th. Piper Sandler raised their price objective on Darden Restaurants from $208.00 to $212.00 and gave the company a "neutral" rating in a research report on Friday, June 26th. Finally, Evercore downgraded Darden Restaurants from an "outperform" rating to an "in-line" rating and set a $230.00 target price for the company. in a research note on Tuesday, June 23rd. Eighteen equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $230.79.

Darden Restaurants Stock Down 0.0%

DRI stock opened at $209.83 on Monday. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.31 and a quick ratio of 0.21. The stock has a market capitalization of $23.94 billion, a price-to-earnings ratio of 20.21, a PEG ratio of 1.98 and a beta of 0.60. The business's fifty day moving average price is $210.14 and its two-hundred day moving average price is $204.68. Darden Restaurants, Inc. has a fifty-two week low of $169.00 and a fifty-two week high of $229.76.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its earnings results on Thursday, June 25th. The restaurant operator reported $3.66 earnings per share for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $3.73 billion. During the same quarter last year, the firm earned $2.98 earnings per share. The company's revenue was up 13.7% on a year-over-year basis. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. On average, equities analysts anticipate that Darden Restaurants, Inc. will post 11.25 earnings per share for the current year.

Darden Restaurants Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Shareholders of record on Friday, July 10th were paid a $1.62 dividend. This is a positive change from Darden Restaurants's previous quarterly dividend of $1.50. The ex-dividend date was Friday, July 10th. This represents a $6.48 annualized dividend and a yield of 3.1%. Darden Restaurants's dividend payout ratio is presently 62.43%.

Insider Transactions at Darden Restaurants

In other news, CEO Ricardo Cardenas sold 39,134 shares of the firm's 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 of the company's stock, valued at approximately $18,009,682.76. This trade represents a 31.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Laura B. Williamson sold 443 shares of Darden Restaurants stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $204.89, for a total transaction of $90,766.27. Following the completion of the sale, the insider owned 5,536 shares of the company's stock, valued at approximately $1,134,271.04. The trade was a 7.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 70,185 shares of company stock worth $14,636,984. Company insiders own 0.67% of the company's stock.

Darden Restaurants Company 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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