Valley Wealth Managers Inc. Reduces Stake in Darden Restaurants, Inc. (NYSE:DRI)

Key Points

• Valley Wealth Managers Inc. reduced its stake in Darden Restaurants by 4.8% during the 1st quarter, owning 103,464 shares valued at approximately $21,496,000, making it the firm's 22nd largest holding.
• Darden Restaurants reported $2.98 earnings per share for the most recent quarter, exceeding analyst expectations and showed a year-over-year revenue increase of 10.6% to $3.27 billion.
• The company approved a $1 billion stock repurchase program and announced a quarterly dividend increase from $1.40 to $1.50, reflecting confidence in its stock value.

Valley Wealth Managers Inc. lowered its position in Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 4.8% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 103,464 shares of the restaurant operator's stock after selling 5,172 shares during the period. Darden Restaurants comprises about 1.6% of Valley Wealth Managers Inc.'s investment portfolio, making the stock its 22nd biggest holding. Valley Wealth Managers Inc. owned 0.09% of Darden Restaurants worth $21,496,000 at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of the company. GAMMA Investing LLC increased its position in shares of Darden Restaurants by 46,484.5% during the 1st quarter. GAMMA Investing LLC now owns 928,895 shares of the restaurant operator's stock valued at $192,987,000 after purchasing an additional 926,901 shares during the last quarter. Norges Bank purchased a new position in shares of Darden Restaurants in the fourth quarter worth approximately $75,137,000. Junto Capital Management LP bought a new stake in Darden Restaurants during the fourth quarter valued at approximately $48,919,000. Royal Bank of Canada grew its position in Darden Restaurants by 145.2% during the fourth quarter. Royal Bank of Canada now owns 385,029 shares of the restaurant operator's stock valued at $71,883,000 after buying an additional 227,977 shares during the period. Finally, Bank of Montreal Can increased its holdings in Darden Restaurants by 184.3% during the fourth quarter. Bank of Montreal Can now owns 297,938 shares of the restaurant operator's stock valued at $55,622,000 after buying an additional 193,134 shares during the last quarter. Hedge funds and other institutional investors own 93.64% of the company's stock.

Darden Restaurants Price Performance

NYSE:DRI opened at $204.42 on Friday. The business's 50-day moving average is $214.24 and its 200 day moving average is $202.06. Darden Restaurants, Inc. has a 12 month low of $140.10 and a 12 month high of $228.27. The company has a market capitalization of $23.92 billion, a P/E ratio of 23.02, a P/E/G ratio of 1.87 and a beta of 0.74. The company has a current ratio of 0.42, a quick ratio of 0.28 and a debt-to-equity ratio of 0.92.

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 return on equity of 51.81% and a net margin of 8.69%. The business had revenue of $3.27 billion for the quarter, compared to analysts' expectations of $3.25 billion. During the same period in the prior year, the firm earned $2.65 EPS. The company's revenue for the quarter was up 10.6% on a year-over-year basis. On average, equities research analysts forecast that Darden Restaurants, Inc. will post 9.52 earnings per share for the current fiscal year.

Darden Restaurants declared that its board has approved a stock repurchase program on Friday, June 20th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the restaurant operator to repurchase up to 3.8% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Darden Restaurants Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 1st. Shareholders of record on Thursday, July 10th will be paid a $1.50 dividend. This is a boost from Darden Restaurants's previous quarterly dividend of $1.40. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.94%. The ex-dividend date of this dividend is Thursday, July 10th. Darden Restaurants's dividend payout ratio (DPR) is presently 67.57%.

Insider Transactions at Darden Restaurants

In other Darden Restaurants news, CFO Rajesh Vennam sold 5,780 shares of the company'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 transaction of $1,284,431.60. Following the sale, the chief financial officer directly owned 4,555 shares in the company, valued at $1,012,212.10. This represents a 55.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, SVP Susan M. Connelly sold 4,735 shares of the business's stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $223.78, for a total value of $1,059,598.30. Following the transaction, the senior vice president directly 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. Over the last 90 days, insiders sold 43,714 shares of company stock worth $9,609,494. 0.58% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on DRI shares. Wall Street Zen cut shares of Darden Restaurants from a "buy" rating to a "hold" rating in a research note on Friday, June 27th. Citigroup raised their target price on Darden Restaurants from $245.00 to $253.00 and gave the stock a "buy" rating in a report on Monday, June 23rd. Oppenheimer lifted their target price on Darden Restaurants from $230.00 to $250.00 and gave the company an "outperform" rating in a research report on Wednesday, June 18th. Raymond James Financial upped their price target on Darden Restaurants from $230.00 to $240.00 and gave the stock an "outperform" rating in a research report on Monday, June 23rd. Finally, UBS Group raised their price objective on Darden Restaurants from $225.00 to $245.00 and gave the stock a "buy" rating in a research note on Monday, June 16th. Twelve analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $225.19.

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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