Darden Restaurants (NYSE:DRI) Upgraded at Melius Research

Melius Research upgraded shares of Darden Restaurants (NYSE:DRI - Free Report) to a hold rating in a research report sent to investors on Monday morning,Zacks.com reports.

Other analysts have also issued research reports about the company. KeyCorp boosted their target price on Darden Restaurants from $230.00 to $245.00 and gave the company an "overweight" rating in a research report on Monday, June 23rd. Bank of America lifted their price objective on Darden Restaurants from $252.00 to $253.00 and gave the company a "buy" rating in a research note on Monday, June 23rd. UBS Group increased their target price on Darden Restaurants from $225.00 to $245.00 and gave the stock a "buy" rating in a research note on Monday, June 16th. TD Securities restated a "hold" rating and set a $215.00 target price on shares of Darden Restaurants in a report on Friday, June 20th. Finally, Raymond James Financial boosted their price target on shares of Darden Restaurants from $230.00 to $240.00 and gave the stock an "outperform" rating in a research note on Monday, June 23rd. Twelve analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the stock. According to MarketBeat.com, Darden Restaurants has a consensus rating of "Moderate Buy" and an average target price of $225.19.

Darden Restaurants Trading Up 1.1%

Shares of NYSE DRI traded up $2.32 during mid-day trading on Monday, reaching $209.45. 1,052,164 shares of the company's stock were exchanged, compared to its average volume of 1,341,147. The company's 50-day moving average is $214.38 and its 200-day moving average is $201.35. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.28 and a current ratio of 0.42. The firm has a market capitalization of $24.51 billion, a price-to-earnings ratio of 23.59, a PEG ratio of 2.00 and a beta of 0.74. Darden Restaurants has a 52-week low of $138.21 and a 52-week high of $228.27.

Darden Restaurants (NYSE:DRI - Get Free Report) last announced its earnings results on Friday, June 20th. The restaurant operator reported $2.98 earnings per share for the quarter, topping the consensus estimate of $2.97 by $0.01. The company had revenue of $3.27 billion during the quarter, compared to analyst estimates of $3.25 billion. Darden Restaurants had a net margin of 8.69% and a return on equity of 51.81%. Darden Restaurants's revenue was up 10.6% compared to the same quarter last year. During the same quarter last year, the firm posted $2.65 earnings per share. Analysts expect that Darden Restaurants will post 9.52 EPS for the current fiscal year.

Darden Restaurants Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 1st. Shareholders of record on Thursday, July 10th will be issued a dividend of $1.50 per share. The ex-dividend date of this dividend is Thursday, July 10th. This represents a $6.00 dividend on an annualized basis and a yield of 2.86%. This is a boost from Darden Restaurants's previous quarterly dividend of $1.40. Darden Restaurants's dividend payout ratio (DPR) is presently 67.57%.

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

Insider Transactions at Darden Restaurants

In other news, SVP Douglas J. Milanes sold 11,948 shares of the business's stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $222.08, for a total value of $2,653,411.84. Following the completion of the sale, the senior vice president directly owned 147 shares of the company's stock, valued at approximately $32,645.76. The trade was a 98.78% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Rajesh Vennam sold 5,780 shares of the firm'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 value of $1,284,431.60. Following the transaction, 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 position. The disclosure for this sale can be found here. Over the last three months, insiders sold 43,714 shares of company stock worth $9,609,494. Insiders own 0.58% of the company's stock.

Institutional Investors Weigh In On Darden Restaurants

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DRI. HighTower Advisors LLC grew its holdings in shares of Darden Restaurants by 10.0% during the fourth quarter. HighTower Advisors LLC now owns 17,448 shares of the restaurant operator's stock worth $3,257,000 after buying an additional 1,579 shares during the last quarter. Sequoia Financial Advisors LLC acquired a new stake in Darden Restaurants during the 4th quarter worth approximately $411,000. Commonwealth Equity Services LLC grew its stake in shares of Darden Restaurants by 4.2% in the 4th quarter. Commonwealth Equity Services LLC now owns 34,788 shares of the restaurant operator's stock valued at $6,495,000 after purchasing an additional 1,415 shares during the last quarter. Natixis Advisors LLC grew its stake in shares of Darden Restaurants by 13.3% in the 4th quarter. Natixis Advisors LLC now owns 93,490 shares of the restaurant operator's stock valued at $17,454,000 after purchasing an additional 10,940 shares during the last quarter. Finally, Cibc World Markets Corp increased its holdings in shares of Darden Restaurants by 14.8% in the fourth quarter. Cibc World Markets Corp now owns 18,534 shares of the restaurant operator's stock valued at $3,460,000 after purchasing an additional 2,387 shares during the period. Hedge funds and other institutional investors own 93.64% of the company's stock.

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.