Oppenheimer Reiterates Outperform Rating for Darden Restaurants (NYSE:DRI)

Key Points

• Oppenheimer reaffirmed its “outperform” rating on Darden Restaurants and set a $235 price target, implying about 9.5% upside from the prior close.
• Other analysts remain broadly constructive, with several raising targets; the stock now carries a consensus “Moderate Buy” and an average price target of $226.56.
• Darden’s latest quarter beat expectations, with EPS of $2.95 and revenue of $3.35 billion, while shares recently traded around $214.67 after rising 1.6%.

Darden Restaurants (NYSE:DRI - Get Free Report)'s stock had its "outperform" rating reaffirmed by investment analysts at Oppenheimer in a research note issued to investors on Thursday,Benzinga reports. They currently have a $235.00 price target on the restaurant operator's stock. Oppenheimer's target price suggests a potential upside of 9.47% from the stock's previous close.

Several other research firms have also weighed in on DRI. Citigroup lifted their target price on Darden Restaurants from $238.00 to $245.00 and gave the stock a "buy" rating in a report on Monday. Sanford C. Bernstein reiterated an "outperform" rating on shares of Darden Restaurants in a report on Friday, March 13th. BTIG Research reiterated a "buy" rating and set a $225.00 target price on shares of Darden Restaurants in a report on Friday, March 20th. Deutsche Bank Aktiengesellschaft boosted their price target on Darden Restaurants from $222.00 to $230.00 and gave the company a "buy" rating in a report on Friday, March 20th. Finally, Robert W. Baird boosted their price target on Darden Restaurants from $208.00 to $215.00 and gave the company a "neutral" rating in a report on Friday, March 20th. Eighteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $226.56.

Darden Restaurants Trading Up 1.6%

Shares of NYSE DRI traded up $3.34 during midday trading on Thursday, hitting $214.67. The stock had a trading volume of 575,765 shares, compared to its average volume of 1,337,333. The company's 50-day simple moving average is $199.35 and its 200 day simple moving average is $199.36. The firm has a market cap of $24.59 billion, a P/E ratio of 22.72, a price-to-earnings-growth ratio of 1.87 and a beta of 0.60. Darden Restaurants has a fifty-two week low of $169.00 and a fifty-two week high of $228.27. The company has a debt-to-equity ratio of 1.02, a current ratio of 0.39 and a quick ratio of 0.25.

Darden Restaurants (NYSE:DRI - Get Free Report) last announced its quarterly earnings data on Thursday, March 19th. The restaurant operator reported $2.95 EPS for the quarter, topping analysts' consensus estimates of $2.94 by $0.01. Darden Restaurants had a return on equity of 53.54% and a net margin of 8.66%.The business had revenue of $3.35 billion during the quarter, compared to analysts' expectations of $3.33 billion. During the same period in the previous year, the firm earned $2.80 earnings per share. The firm's quarterly revenue was up 5.9% compared to the same quarter last year. Research analysts anticipate that Darden Restaurants will post 10.62 EPS for the current year.

Insider Buying and Selling

In other news, SVP Lindsay L. Koren sold 300 shares of the company's stock in a transaction that occurred on Tuesday, April 7th. The stock was sold at an average price of $194.32, for a total value of $58,296.00. Following the transaction, the senior vice president owned 1,617 shares of the company's stock, valued at approximately $314,215.44. This represents a 15.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Douglas J. Milanes sold 3,620 shares of the company's stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $202.16, for a total value of $731,819.20. Following the completion of the transaction, the senior vice president directly owned 274 shares in the company, valued at $55,391.84. The trade was a 92.96% decrease in their position. The SEC filing for this sale provides additional information. 0.49% of the stock is owned by insiders.

Institutional Investors Weigh In On Darden Restaurants

A number of large investors have recently added to or reduced their stakes in DRI. Torren Management LLC bought a new stake in Darden Restaurants during the fourth quarter worth $26,000. Thurston Springer Miller Herd & Titak Inc. lifted its stake in Darden Restaurants by 926.7% during the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 154 shares of the restaurant operator's stock worth $28,000 after purchasing an additional 139 shares during the last quarter. Union Savings Bank bought a new stake in Darden Restaurants during the fourth quarter worth $28,000. BOK Financial Private Wealth Inc. bought a new stake in Darden Restaurants during the fourth quarter worth $29,000. Finally, DV Equities LLC bought a new stake in Darden Restaurants during the fourth quarter worth $30,000. Institutional investors and hedge funds own 93.64% of the company's stock.

Darden Restaurants Company Profile

Darden Restaurants, Inc is a multi-brand, full-service restaurant company headquartered in Orlando, Florida. The company owns and operates a portfolio of casual and fine-dining concepts that together serve millions of guests through company-owned and franchised locations. Its well-known brands include Olive Garden and LongHorn Steakhouse, alongside other dining concepts that span Italian, American, steakhouse and upscale casual formats.

Darden's restaurants provide a range of guest-facing services including dine-in, takeout, delivery and catering, and feature menus tailored to each brand's positioning—Italian-American fare at Olive Garden, steaks and grilled items at LongHorn, and more premium steakhouse and chef-driven offerings at its upscale concepts.

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