USA Financial Formulas Has $930,000 Stock Holdings in Darden Restaurants, Inc. $DRI

Key Points

• USA Financial Formulas has reduced its stock holdings in Darden Restaurants, Inc. (NYSE:DRI) by 27.4%, owning 4,265 shares worth approximately $930,000 as of the latest SEC filing.
• Darden has initiated a $1 billion share buyback program, indicating the board believes the stock is undervalued, while also announcing a $1.50 quarterly dividend with an upcoming ex-dividend date of October 10th.
• The company recently reported quarterly earnings of $1.97 per share, falling short of expectations, but revenues increased 10.4% year-over-year, reaching $3.04 billion.

USA Financial Formulas trimmed its position in Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 27.4% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,265 shares of the restaurant operator's stock after selling 1,609 shares during the quarter. USA Financial Formulas' holdings in Darden Restaurants were worth $930,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in DRI. Nuveen LLC acquired a new position in Darden Restaurants in the 1st quarter valued at $84,801,000. 1832 Asset Management L.P. acquired a new position in Darden Restaurants in the 1st quarter valued at $53,760,000. Charles Schwab Investment Management Inc. grew its holdings in Darden Restaurants by 6.6% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 3,998,200 shares of the restaurant operator's stock valued at $830,666,000 after buying an additional 247,542 shares in the last quarter. Woodline Partners LP grew its holdings in shares of Darden Restaurants by 3,824.2% during the 1st quarter. Woodline Partners LP now owns 177,217 shares of the restaurant operator's stock worth $36,819,000 after purchasing an additional 172,701 shares in the last quarter. Finally, Raymond James Financial Inc. grew its holdings in shares of Darden Restaurants by 4.6% during the 1st quarter. Raymond James Financial Inc. now owns 3,601,340 shares of the restaurant operator's stock worth $748,215,000 after purchasing an additional 157,305 shares in the last quarter. 93.64% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Darden Restaurants news, insider Laura B. Williamson sold 1,157 shares of the stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $204.70, for a total value of $236,837.90. Following the completion of the transaction, the insider directly owned 10,632 shares in the company, valued at approximately $2,176,370.40. This trade represents a 9.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders sold 2,013 shares of company stock valued at $412,738 in the last ninety days. 0.49% of the stock is currently owned by company insiders.

Darden Restaurants Stock Performance

NYSE:DRI opened at $192.35 on Thursday. The stock's 50-day simple moving average is $203.24 and its 200 day simple moving average is $205.97. The firm has a market capitalization of $22.37 billion, a PE ratio of 20.62, a price-to-earnings-growth ratio of 1.74 and a beta of 0.77. The company has a quick ratio of 0.27, a current ratio of 0.40 and a debt-to-equity ratio of 0.96. Darden Restaurants, Inc. has a twelve month low of $155.18 and a twelve month high of $228.27.

Darden Restaurants (NYSE:DRI - Get Free Report) last released its quarterly earnings data on Thursday, September 18th. The restaurant operator reported $1.97 earnings per share for the quarter, missing the consensus estimate of $2.01 by ($0.04). The business had revenue of $3.04 billion during the quarter, compared to analyst estimates of $3.03 billion. Darden Restaurants had a net margin of 8.90% and a return on equity of 52.35%. The business's quarterly revenue was up 10.4% compared to the same quarter last year. During the same period last year, the business earned $1.75 earnings per share. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. On average, analysts anticipate that Darden Restaurants, Inc. will post 9.52 EPS for the current fiscal year.

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

Darden Restaurants Dividend Announcement

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 given 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 dividend payout ratio (DPR) is currently 64.31%.

Analyst Ratings Changes

DRI has been the subject of several recent analyst reports. Melius Research raised shares of Darden Restaurants to a "hold" rating in a research report on Monday, July 14th. Truist Financial cut their price objective on shares of Darden Restaurants from $252.00 to $240.00 and set a "buy" rating for the company in a research report on Friday, September 19th. Morgan Stanley upped their price objective on shares of Darden Restaurants from $235.00 to $238.00 and gave the stock an "overweight" rating in a research report on Friday, September 19th. BMO Capital Markets cut their price objective on shares of Darden Restaurants from $215.00 to $205.00 and set a "market perform" rating for the company in a research report on Friday, September 19th. Finally, Evercore ISI cut their price objective on shares of Darden Restaurants from $245.00 to $240.00 and set an "outperform" rating for the company in a research report on Friday, September 19th. Eighteen investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $225.96.

Darden Restaurants 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.

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