Darden Restaurants (NYSE:DRI) Receives "Buy" Rating from TD Cowen

Darden Restaurants (NYSE:DRI - Get Free Report)'s stock had its "buy" rating restated by equities research analysts at TD Cowen in a research note issued to investors on Monday, Benzinga reports. They currently have a $190.00 price objective on the restaurant operator's stock. TD Cowen's price objective suggests a potential upside of 22.94% from the stock's previous close.

Other equities research analysts have also recently issued reports about the stock. Stephens started coverage on shares of Darden Restaurants in a research report on Friday, April 12th. They issued an "equal weight" rating and a $170.00 target price for the company. Barclays boosted their target price on Darden Restaurants from $180.00 to $187.00 and gave the stock an "overweight" rating in a report on Wednesday, January 3rd. StockNews.com cut Darden Restaurants from a "buy" rating to a "hold" rating in a report on Thursday, January 4th. Oppenheimer cut their price objective on shares of Darden Restaurants from $186.00 to $182.00 and set an "outperform" rating for the company in a research report on Friday, March 22nd. Finally, Morgan Stanley decreased their target price on shares of Darden Restaurants from $184.00 to $180.00 and set an "overweight" rating on the stock in a report on Friday, March 22nd. Five equities research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the stock. According to data from MarketBeat, Darden Restaurants has an average rating of "Moderate Buy" and a consensus target price of $178.85.

Darden Restaurants Price Performance

Shares of DRI stock traded up $2.05 during trading hours on Monday, hitting $154.55. 1,234,516 shares of the company's stock were exchanged, compared to its average volume of 1,150,490. The firm has a market cap of $18.45 billion, a P/E ratio of 18.12, a P/E/G ratio of 1.68 and a beta of 1.25. The firm has a 50 day moving average of $165.23 and a two-hundred day moving average of $158.90. The company has a quick ratio of 0.25, a current ratio of 0.39 and a debt-to-equity ratio of 0.63. Darden Restaurants has a fifty-two week low of $133.36 and a fifty-two week high of $176.84.

Darden Restaurants (NYSE:DRI - Get Free Report) last released its 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 for the quarter, compared to analysts' expectations of $3.02 billion. Darden Restaurants had a return on equity of 49.94% and a net margin of 9.24%. The firm's revenue for the quarter was up 6.8% on a year-over-year basis. During the same period in the prior year, the firm earned $2.34 EPS. Sell-side analysts forecast that Darden Restaurants will post 8.85 EPS for the current year.

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

Insider Activity

In related news, Director William S. Simon sold 1,219 shares of the stock in a transaction on Monday, April 8th. The stock was sold at an average price of $158.21, for a total value of $192,857.99. Following the transaction, the director now owns 6,281 shares of the company's stock, valued at $993,717.01. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In other Darden Restaurants news, Director William S. Simon sold 1,219 shares of the 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 transaction, the director now directly owns 6,281 shares in the company, valued at $993,717.01. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Melvin John Martin sold 7,673 shares of the firm's stock in a transaction that occurred on Wednesday, March 27th. The stock was sold at an average price of $165.52, for a total transaction of $1,270,034.96. Following the sale, the insider now directly owns 17,208 shares in the company, valued at approximately $2,848,268.16. The disclosure for this sale can be found here. In the last three months, insiders have sold 15,723 shares of company stock worth $2,578,122. 0.85% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Darden Restaurants

Several hedge funds have recently made changes to their positions in DRI. Rise Advisors LLC grew its stake in Darden Restaurants by 131.3% during the 1st quarter. Rise Advisors LLC now owns 155 shares of the restaurant operator's stock worth $26,000 after buying an additional 88 shares during the last quarter. Fortitude Family Office LLC purchased a new position in shares of Darden Restaurants during the fourth quarter worth approximately $29,000. Hartford Financial Management Inc. increased its holdings in shares of Darden Restaurants by 65.1% in 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. Tennessee Valley Asset Management Partners purchased a new stake in Darden Restaurants in the 4th quarter valued at $33,000. Finally, McGlone Suttner Wealth Management Inc. acquired a new stake in Darden Restaurants during the 4th quarter worth $35,000. 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.