Darden Restaurants (NYSE:DRI) Given New $235.00 Price Target at Guggenheim

Key Points

• Guggenheim has raised its price target for Darden Restaurants from $220.00 to $235.00, indicating a potential upside of 11.52%, while maintaining a "buy" rating on the stock.
• Darden Restaurants reported earnings per share of $2.98 for the last quarter, surpassing expectations, with revenues reaching $3.27 billion and showing a 10.6% year-over-year increase.
• The company has initiated a $1 billion share buyback plan, reflecting confidence from its leadership that the stock is undervalued.

Darden Restaurants (NYSE:DRI - Get Free Report) had its price objective boosted by research analysts at Guggenheim from $220.00 to $235.00 in a research report issued on Wednesday,Benzinga reports. The firm presently has a "buy" rating on the restaurant operator's stock. Guggenheim's price target points to a potential upside of 21.98% from the company's previous close.

A number of other equities analysts have also recently weighed in on the stock. Melius Research raised shares of Darden Restaurants to a "hold" rating in a research report on Monday, July 14th. Citigroup raised their price target on shares of Darden Restaurants from $245.00 to $253.00 and gave the company a "buy" rating in a research report on Monday, June 23rd. JPMorgan Chase & Co. raised their price target on shares of Darden Restaurants from $218.00 to $240.00 and gave the company an "overweight" rating in a research report on Wednesday, June 25th. UBS Group raised their price target on shares of Darden Restaurants from $225.00 to $245.00 and gave the company a "buy" rating in a research report on Monday, June 16th. Finally, TD Securities reissued a "hold" rating and issued a $215.00 price target on shares of Darden Restaurants in a research report on Friday, June 20th. Sixteen equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $228.81.

Darden Restaurants Trading Down 7.7%

Shares of NYSE:DRI traded down $16.14 during mid-day trading on Wednesday, reaching $192.65. 6,693,798 shares of the company were exchanged, compared to its average volume of 884,165. The company has a debt-to-equity ratio of 0.92, a current ratio of 0.42 and a quick ratio of 0.28. The firm has a market cap of $22.46 billion, a price-to-earnings ratio of 21.70, a P/E/G ratio of 1.91 and a beta of 0.71. The firm's 50-day simple moving average is $206.86 and its 200 day simple moving average is $206.12. Darden Restaurants has a 1 year low of $155.18 and a 1 year high of $228.27.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its quarterly earnings data on Thursday, September 18th. The restaurant operator reported $1.97 earnings per share for the quarter, missing analysts' consensus estimates of $2.01 by ($0.04). The company had revenue of $3.04 billion for the quarter, compared to analysts' expectations of $3.03 billion. Darden Restaurants had a return on equity of 51.81% and a net margin of 8.69%.The business's revenue for the quarter was up 10.4% on a year-over-year basis. During the same period in the previous year, the business posted $1.75 EPS. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. Equities research analysts forecast that Darden Restaurants will post 9.52 EPS for the current year.

Darden Restaurants announced that its board has initiated a stock buyback 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 generally an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling at Darden Restaurants

In other news, insider Todd Burrowes sold 13,569 shares of Darden Restaurants stock in a transaction on Monday, June 30th. The shares were sold at an average price of $216.45, for a total transaction of $2,937,010.05. Following the completion of the sale, the insider directly owned 46,327 shares of the company's stock, valued at approximately $10,027,479.15. The trade was a 22.65% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Rajesh Vennam sold 5,780 shares of Darden Restaurants stock in a transaction 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 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 disclosure for this sale can be found here. In the last quarter, insiders sold 45,727 shares of company stock worth $10,022,232. 0.49% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Darden Restaurants

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Twin Peaks Wealth Advisors LLC acquired a new stake in Darden Restaurants during the 2nd quarter worth $26,000. Grove Bank & Trust raised its stake in Darden Restaurants by 171.4% during the 1st quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator's stock worth $28,000 after acquiring an additional 84 shares in the last quarter. Elevation Point Wealth Partners LLC acquired a new stake in Darden Restaurants during the 2nd quarter worth $29,000. True Wealth Design LLC raised its stake in Darden Restaurants by 419.2% during the 2nd quarter. True Wealth Design LLC now owns 135 shares of the restaurant operator's stock worth $29,000 after acquiring an additional 109 shares in the last quarter. Finally, ORG Partners LLC raised its stake in Darden Restaurants by 108.8% during the 1st quarter. ORG Partners LLC now owns 142 shares of the restaurant operator's stock worth $30,000 after acquiring an additional 74 shares in the last quarter. 93.64% of the stock is currently owned by institutional investors and hedge funds.

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.