Traders Purchase Large Volume of Put Options on Darden Restaurants (NYSE:DRI)

Darden Restaurants, Inc. (NYSE:DRI - Get Free Report) saw unusually large options trading activity on Wednesday. Stock traders bought 22,615 put options on the company. This represents an increase of 1,334% compared to the average daily volume of 1,577 put options.

Darden Restaurants Stock Performance

Shares of DRI stock traded down $2.41 during trading hours on Wednesday, hitting $155.90. The stock had a trading volume of 1,089,813 shares, compared to its average volume of 1,152,193. The firm has a market capitalization of $18.61 billion, a PE ratio of 18.28, a PEG ratio of 1.73 and a beta of 1.25. Darden Restaurants has a twelve month low of $133.36 and a twelve month high of $176.84. The stock's 50 day moving average is $167.20 and its 200 day moving average is $158.23. The company has a debt-to-equity ratio of 0.63, a current ratio of 0.39 and a quick ratio of 0.25.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its quarterly earnings data on Thursday, March 21st. The restaurant operator reported $2.62 earnings per share for the quarter, missing the consensus estimate of $2.63 by ($0.01). The firm had revenue of $2.97 billion during the quarter, compared to analyst estimates of $3.02 billion. Darden Restaurants had a net margin of 9.24% and a return on equity of 49.94%. Darden Restaurants's revenue was up 6.8% compared to the same quarter last year. During the same period in the previous year, the company posted $2.34 earnings per share. As a group, research analysts forecast that Darden Restaurants will post 8.85 earnings per share for the current fiscal year.

Darden Restaurants announced that its Board of Directors has authorized a stock buyback program on Thursday, March 21st that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the restaurant operator to repurchase up to 5% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board of directors believes its shares are undervalued.

Darden Restaurants Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 1st. Stockholders of record on Wednesday, April 10th will be issued a $1.31 dividend. This represents a $5.24 annualized dividend and a dividend yield of 3.36%. The ex-dividend date is Tuesday, April 9th. Darden Restaurants's payout ratio is currently 61.43%.

Insider Buying and Selling

In related news, Director William S. Simon sold 1,219 shares of Darden Restaurants stock in a transaction that occurred on Monday, April 8th. The shares were sold at an average price of $158.21, for a total value of $192,857.99. Following the completion of the sale, the director now directly owns 6,281 shares in the company, valued at approximately $993,717.01. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In other Darden Restaurants news, insider Melvin John Martin sold 7,673 shares of the firm'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 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director William S. Simon sold 1,219 shares of the firm's stock in a transaction that occurred on Monday, April 8th. The stock was sold at an average price of $158.21, for a total transaction of $192,857.99. Following the transaction, the director now directly owns 6,281 shares of the company's stock, valued at $993,717.01. The disclosure for this sale can be found here. Insiders sold 15,723 shares of company stock worth $2,578,122 in the last three months. Corporate insiders own 0.85% of the company's stock.

Institutional Investors Weigh In On Darden Restaurants

Hedge funds have recently modified their holdings of the stock. Rise Advisors LLC lifted its holdings in shares of Darden Restaurants by 131.3% during the first quarter. Rise Advisors LLC now owns 155 shares of the restaurant operator's stock worth $26,000 after purchasing an additional 88 shares during the period. Quarry LP raised its position in Darden Restaurants by 980.0% in the second quarter. Quarry LP now owns 162 shares of the restaurant operator's stock worth $27,000 after acquiring an additional 147 shares in the last quarter. Fortitude Family Office LLC acquired a new stake in Darden Restaurants in the fourth quarter valued at $29,000. Hartford Financial Management Inc. boosted its position in shares of Darden Restaurants by 65.1% during the 4th quarter. Hartford Financial Management Inc. now owns 180 shares of the restaurant operator's stock worth $30,000 after purchasing an additional 71 shares in the last quarter. Finally, Tennessee Valley Asset Management Partners acquired a new position in shares of Darden Restaurants during the 4th quarter worth $33,000. 93.64% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research firms have issued reports on DRI. Citigroup reduced their price target on shares of Darden Restaurants from $200.00 to $192.00 and set a "buy" rating for the company in a research report on Friday, March 22nd. Morgan Stanley lowered their price target on shares of Darden Restaurants from $184.00 to $180.00 and set an "overweight" rating on the stock in a research report on Friday, March 22nd. Stifel Nicolaus boosted their price target on shares of Darden Restaurants from $185.00 to $190.00 and gave the stock a "buy" rating in a research note on Tuesday, March 19th. Wedbush cut their price target on shares of Darden Restaurants from $187.00 to $181.00 and set an "outperform" rating on the stock in a research note on Friday, March 22nd. Finally, StockNews.com lowered shares of Darden Restaurants from a "buy" rating to a "hold" rating in a research note on Thursday, January 4th. Four investment analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the stock. According to MarketBeat, Darden Restaurants presently has an average rating of "Moderate Buy" and a consensus target price of $178.85.

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.

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