Insider Selling: Darden Restaurants, Inc. (NYSE:DRI) SVP Sells 6,949 Shares of Stock

Darden Restaurants, Inc. (NYSE:DRI - Get Free Report) SVP Matthew R. Broad sold 6,949 shares of Darden Restaurants stock in a transaction dated Monday, June 30th. The stock was sold at an average price of $218.00, for a total value of $1,514,882.00. Following the completion of the sale, the senior vice president owned 14,367 shares of the company's stock, valued at approximately $3,132,006. The trade was a 32.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.

Darden Restaurants Stock Up 0.4%

Shares of NYSE:DRI traded up $0.94 during midday trading on Friday, reaching $220.27. 604,934 shares of the company were exchanged, compared to its average volume of 1,349,187. The firm has a market cap of $25.78 billion, a PE ratio of 24.81, a P/E/G ratio of 2.13 and a beta of 0.74. Darden Restaurants, Inc. has a fifty-two week low of $135.87 and a fifty-two week high of $228.27. The stock has a fifty day simple moving average of $212.17 and a two-hundred day simple moving average of $199.46. The company has a quick ratio of 0.28, a current ratio of 0.42 and a debt-to-equity ratio of 0.92.

Darden Restaurants (NYSE:DRI - Get Free Report) last released its earnings results on Friday, June 20th. The restaurant operator reported $2.98 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.97 by $0.01. The firm had revenue of $3.27 billion during the quarter, compared to analysts' expectations of $3.25 billion. Darden Restaurants had a return on equity of 51.81% and a net margin of 8.69%. The company's revenue was up 10.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.65 EPS. As a group, sell-side analysts forecast that Darden Restaurants, Inc. will post 9.52 earnings per share for the current year.

Darden Restaurants announced that its board has approved a stock buyback plan on Friday, June 20th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the restaurant operator to buy up to 3.8% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its stock is undervalued.

Darden Restaurants Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 1st. Investors of record on Thursday, July 10th will be given a $1.50 dividend. This represents a $6.00 dividend on an annualized basis and a yield of 2.72%. The ex-dividend date is Thursday, July 10th. This is a positive change from Darden Restaurants's previous quarterly dividend of $1.40. Darden Restaurants's dividend payout ratio (DPR) is currently 63.06%.

Hedge Funds Weigh In On Darden Restaurants

A number of large investors have recently bought and sold shares of the company. TCTC Holdings LLC acquired a new stake in shares of Darden Restaurants in the fourth quarter valued at approximately $28,000. Grove Bank & Trust grew its position in Darden Restaurants by 171.4% in the first quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator's stock valued at $28,000 after purchasing an additional 84 shares in the last quarter. ORG Partners LLC increased its stake in Darden Restaurants by 108.8% in the 1st quarter. ORG Partners LLC now owns 142 shares of the restaurant operator's stock valued at $30,000 after buying an additional 74 shares during the last quarter. Centennial Bank AR bought a new stake in Darden Restaurants during the 1st quarter worth about $31,000. Finally, Alpine Bank Wealth Management bought a new stake in Darden Restaurants during the 1st quarter worth about $34,000. Institutional investors and hedge funds own 93.64% of the company's stock.

Analyst Ratings Changes

Several brokerages recently weighed in on DRI. Guggenheim increased their price objective on shares of Darden Restaurants from $205.00 to $220.00 and gave the company a "buy" rating in a report on Monday, March 24th. KeyCorp upped their target price on shares of Darden Restaurants from $230.00 to $245.00 and gave the company an "overweight" rating in a research report on Monday, June 23rd. Stephens raised their price target on Darden Restaurants from $200.00 to $212.00 and gave the stock an "equal weight" rating in a research report on Monday, June 23rd. Morgan Stanley upped their price objective on Darden Restaurants from $215.00 to $235.00 and gave the company an "overweight" rating in a report on Wednesday, June 18th. Finally, Wall Street Zen cut Darden Restaurants from a "buy" rating to a "hold" rating in a report on Friday, June 27th. Ten analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $224.60.

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.