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Brokerages Set Darden Restaurants, Inc. (NYSE:DRI) Price Target at $173.81

Darden Restaurants logo with Retail/Wholesale background

Darden Restaurants, Inc. (NYSE:DRI - Get Free Report) has earned an average recommendation of "Moderate Buy" from the twenty research firms that are presently covering the company, Marketbeat reports. Four analysts have rated the stock with a hold recommendation and sixteen have given a buy recommendation to the company. The average 1-year price target among brokerages that have covered the stock in the last year is $173.81.

A number of brokerages have recently commented on DRI. Raymond James reissued an "outperform" rating and issued a $167.00 price target (down previously from $175.00) on shares of Darden Restaurants in a report on Friday. Guggenheim increased their target price on shares of Darden Restaurants from $180.00 to $185.00 and gave the company a "buy" rating in a report on Tuesday, March 19th. BTIG Research raised shares of Darden Restaurants from a "neutral" rating to a "buy" rating and set a $175.00 target price on the stock in a report on Friday, May 17th. Evercore ISI reduced their target price on shares of Darden Restaurants from $170.00 to $165.00 and set an "in-line" rating on the stock in a report on Thursday. Finally, JPMorgan Chase & Co. reduced their target price on shares of Darden Restaurants from $176.00 to $165.00 and set an "overweight" rating on the stock in a report on Tuesday, May 28th.

View Our Latest Report on DRI

Darden Restaurants Price Performance

NYSE DRI traded up $1.30 on Friday, hitting $148.78. The stock had a trading volume of 1,229,208 shares, compared to its average volume of 961,500. The firm has a 50-day moving average of $150.99 and a 200-day moving average of $159.80. The company has a market capitalization of $17.76 billion, a price-to-earnings ratio of 17.44, a price-to-earnings-growth ratio of 1.51 and a beta of 1.29. Darden Restaurants has a 52-week low of $133.36 and a 52-week high of $176.84. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.25 and a current ratio of 0.39.


Darden Restaurants (NYSE:DRI - Get Free Report) last issued its quarterly earnings results on Thursday, March 21st. The restaurant operator reported $2.62 EPS for the quarter, missing analysts' consensus estimates of $2.63 by ($0.01). The company had revenue of $2.97 billion during the quarter, compared to the consensus estimate of $3.02 billion. Darden Restaurants had a return on equity of 49.94% and a net margin of 9.24%. Darden Restaurants's quarterly revenue was up 6.8% on a year-over-year basis. During the same period in the previous year, the company earned $2.34 EPS. Equities analysts expect that Darden Restaurants will post 8.85 EPS for the current year.

Darden Restaurants declared that its Board of Directors has initiated a share repurchase plan on Thursday, March 21st that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the restaurant operator to repurchase up to 5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's board of directors believes its stock is undervalued.

Darden Restaurants Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, May 1st. Stockholders of record on Wednesday, April 10th were given a $1.31 dividend. The ex-dividend date was Tuesday, April 9th. This represents a $5.24 annualized dividend and a dividend yield of 3.52%. Darden Restaurants's dividend payout ratio is 61.43%.

Insider Activity at Darden Restaurants

In related news, insider Melvin John Martin sold 7,673 shares of Darden Restaurants stock in a transaction dated Wednesday, March 27th. The shares were sold at an average price of $165.52, for a total transaction of $1,270,034.96. Following the completion of the transaction, the insider now directly owns 17,208 shares of the company's stock, valued at approximately $2,848,268.16. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. In other news, insider Melvin John Martin sold 7,673 shares of the company's stock in a transaction that occurred on Wednesday, March 27th. The shares were sold at an average price of $165.52, for a total value of $1,270,034.96. Following the transaction, the insider now owns 17,208 shares in the company, valued at $2,848,268.16. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, SVP Matthew R. Broad sold 4,707 shares of the firm's stock in a transaction that occurred on Thursday, April 25th. The shares were sold at an average price of $156.15, for a total transaction of $734,998.05. Following the sale, the senior vice president now directly owns 19,179 shares of the company's stock, valued at approximately $2,994,800.85. The disclosure for this sale can be found here. Insiders sold a total of 13,599 shares of company stock valued at $2,197,891 in the last three months. Company insiders own 0.85% of the company's stock.

Hedge Funds Weigh In On Darden Restaurants

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Alps Advisors Inc. lifted its stake in Darden Restaurants by 3.0% during the 3rd quarter. Alps Advisors Inc. now owns 2,274 shares of the restaurant operator's stock valued at $326,000 after acquiring an additional 66 shares during the period. Union Savings Bank lifted its stake in Darden Restaurants by 44.0% during the 4th quarter. Union Savings Bank now owns 216 shares of the restaurant operator's stock valued at $35,000 after acquiring an additional 66 shares during the period. Cornerstone Wealth Group LLC lifted its stake in Darden Restaurants by 0.4% during the 1st quarter. Cornerstone Wealth Group LLC now owns 16,550 shares of the restaurant operator's stock valued at $2,766,000 after acquiring an additional 66 shares during the period. Blair William & Co. IL lifted its stake in Darden Restaurants by 1.0% during the 3rd quarter. Blair William & Co. IL now owns 6,997 shares of the restaurant operator's stock valued at $1,002,000 after acquiring an additional 71 shares during the period. Finally, Hartford Financial Management Inc. lifted its stake in Darden Restaurants by 65.1% during the 4th quarter. Hartford Financial Management Inc. now owns 180 shares of the restaurant operator's stock valued at $30,000 after acquiring an additional 71 shares during the period. Institutional investors own 93.64% of the company's stock.

Darden Restaurants Company Profile

(Get Free Report

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.

Further Reading

Analyst Recommendations for Darden Restaurants (NYSE:DRI)

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