Darden Restaurants, Inc. (NYSE:DRI) Sees Large Growth in Short Interest

Darden Restaurants, Inc. (NYSE:DRI - Get Free Report) saw a large increase in short interest in the month of March. As of March 31st, there was short interest totalling 5,890,000 shares, an increase of 8.3% from the March 15th total of 5,440,000 shares. Based on an average trading volume of 1,150,000 shares, the short-interest ratio is currently 5.1 days. Approximately 5.0% of the company's stock are sold short.

Insider Activity at Darden Restaurants

In other Darden Restaurants news, SVP Matthew R. Broad sold 6,831 shares of Darden Restaurants stock in a transaction dated Wednesday, January 31st. The shares were sold at an average price of $163.26, for a total value of $1,115,229.06. Following the completion of the transaction, the senior vice president now directly owns 19,141 shares of the company's stock, valued at $3,124,959.66. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In other Darden Restaurants news, SVP Matthew R. Broad sold 6,831 shares of Darden Restaurants stock in a transaction dated Wednesday, January 31st. The shares were sold at an average price of $163.26, for a total value of $1,115,229.06. Following the completion of the transaction, the senior vice president now directly owns 19,141 shares of the company's stock, valued at $3,124,959.66. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director William S. Simon sold 1,219 shares of Darden Restaurants stock in a transaction dated Monday, April 8th. The stock was sold at an average price of $158.21, for a total transaction of $192,857.99. Following the completion of 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 a total of 15,723 shares of company stock valued at $2,578,122 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 have recently modified their holdings of DRI. Rise Advisors LLC lifted its holdings in shares of Darden Restaurants by 131.3% in the first quarter. Rise Advisors LLC now owns 155 shares of the restaurant operator's stock worth $26,000 after buying an additional 88 shares in the last quarter. Quarry LP lifted its holdings in shares of 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 buying an additional 147 shares in the last quarter. Fortitude Family Office LLC purchased a new position in shares of Darden Restaurants in the fourth quarter worth $29,000. Resurgent Financial Advisors LLC purchased a new position in shares of Darden Restaurants in the fourth quarter worth $29,000. Finally, Hartford Financial Management Inc. raised its stake in Darden Restaurants by 65.1% during the fourth quarter. Hartford Financial Management Inc. now owns 180 shares of the restaurant operator's stock valued at $30,000 after purchasing an additional 71 shares in the last quarter. Hedge funds and other institutional investors own 93.64% of the company's stock.

Darden Restaurants Price Performance

Shares of DRI traded down $1.17 during mid-day trading on Wednesday, reaching $152.97. The stock had a trading volume of 1,092,123 shares, compared to its average volume of 1,155,436. The firm has a market cap of $18.26 billion, a price-to-earnings ratio of 17.93, a PEG ratio of 1.69 and a beta of 1.25. Darden Restaurants has a 12 month low of $133.36 and a 12 month high of $176.84. The business has a fifty day moving average of $165.85 and a 200 day moving average of $158.62. 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 posted its quarterly earnings results on Thursday, March 21st. The restaurant operator reported $2.62 earnings per share for the quarter, missing analysts' consensus estimates of $2.63 by ($0.01). The firm 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%. The business's revenue for the quarter was up 6.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.34 earnings per share. Equities analysts predict that Darden Restaurants will post 8.85 EPS for the current year.

Darden Restaurants declared that its board has approved a stock repurchase program on Thursday, March 21st that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the restaurant operator to buy up to 5% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's board believes its shares are undervalued.

Darden Restaurants Dividend Announcement

The business also recently announced 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 3.43%. The ex-dividend date is Tuesday, April 9th. Darden Restaurants's dividend payout ratio (DPR) is presently 61.43%.

Wall Street Analyst Weigh In

A number of analysts have recently commented on DRI shares. Stephens started coverage on shares of Darden Restaurants in a research note on Friday, April 12th. They issued an "equal weight" rating and a $170.00 price target for the company. Morgan Stanley reduced their price target on shares of Darden Restaurants from $184.00 to $180.00 and set an "overweight" rating for the company in a research note on Friday, March 22nd. Oppenheimer reduced their price target on shares of Darden Restaurants from $186.00 to $182.00 and set an "outperform" rating for the company in a research note on Friday, March 22nd. 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 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. Five investment analysts have rated the stock with a hold rating and fifteen have given a buy rating to the stock. According to MarketBeat.com, Darden Restaurants presently has an average rating of "Moderate Buy" and an average price target 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.