Darden Restaurants (NYSE:DRI) Price Target Cut to $208.00 by Analysts at Robert W. Baird

Key Points

• Robert W. Baird has reduced its target price for Darden Restaurants' stock from $230.00 to $208.00, while maintaining a "neutral" rating, indicating an expected upside of 11.72% from the previous close.
• Darden Restaurants reported earnings of $1.97 per share for the recent quarter, which was below analysts' expectations of $2.01, despite achieving a revenue of $3.04 billion.
• The company's Board of Directors has initiated a $1 billion stock repurchase program, signaling that management believes the stock is undervalued.

Darden Restaurants (NYSE:DRI - Get Free Report) had its price target decreased by research analysts at Robert W. Baird from $230.00 to $208.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has a "neutral" rating on the restaurant operator's stock. Robert W. Baird's target price would suggest a potential upside of 12.54% from the stock's previous close.

A number of other research analysts also recently commented on DRI. Jefferies Financial Group raised shares of Darden Restaurants from an "underperform" rating to a "hold" rating and lifted their price objective for the company from $165.00 to $210.00 in a research report on Friday, June 13th. BMO Capital Markets lifted their price target on shares of Darden Restaurants from $190.00 to $215.00 and gave the company a "market perform" rating in a report on Wednesday, June 25th. TD Cowen reaffirmed a "hold" rating and issued a $235.00 price objective on shares of Darden Restaurants in a research note on Thursday. BTIG Research reduced their target price on shares of Darden Restaurants from $235.00 to $225.00 and set a "buy" rating for the company in a research note on Friday. Finally, Truist Financial lowered their price target on shares of Darden Restaurants from $252.00 to $240.00 and set a "buy" rating on the stock in a report on Friday. Eighteen research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, Darden Restaurants currently has an average rating of "Moderate Buy" and an average price target of $225.96.

Darden Restaurants Stock Performance

Shares of DRI traded down $7.91 during trading hours on Friday, reaching $184.83. 3,334,483 shares of the company traded hands, compared to its average volume of 1,189,895. The stock has a market cap of $21.55 billion, a P/E ratio of 19.81, a price-to-earnings-growth ratio of 1.69 and a beta of 0.71. The stock's fifty day moving average is $206.37 and its 200 day moving average is $206.14. Darden Restaurants has a 1-year low of $155.18 and a 1-year high of $228.27. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.28 and a current ratio of 0.40.

Darden Restaurants (NYSE:DRI - Get Free Report) last announced its quarterly earnings data on Thursday, September 18th. The restaurant operator reported $1.97 earnings per share for the quarter, missing the consensus estimate of $2.01 by ($0.04). Darden Restaurants had a net margin of 8.90% and a return on equity of 52.35%. The business had revenue of $3.04 billion during the quarter, compared to analyst estimates of $3.03 billion. During the same quarter in the prior year, the company earned $1.75 earnings per share. The company's quarterly revenue was up 10.4% on a year-over-year basis. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. Equities research analysts anticipate that Darden Restaurants will post 9.52 earnings per share for the current fiscal year.

Darden Restaurants declared that its board has approved a stock buyback plan on Friday, June 20th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the restaurant operator to purchase up to 3.8% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's management believes its shares are undervalued.

Insider Transactions at Darden Restaurants

In other news, SVP Susan M. Connelly sold 4,735 shares of the stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $223.78, for a total transaction of $1,059,598.30. Following the completion of the sale, the senior vice president owned 4,602 shares in the company, valued at approximately $1,029,835.56. This represents a 50.71% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Matthew R. Broad sold 733 shares of Darden Restaurants stock in a transaction on Tuesday, July 1st. The shares were sold at an average price of $218.50, for a total value of $160,160.50. Following the transaction, the senior vice president owned 14,367 shares in the company, valued at $3,139,189.50. This represents a 4.85% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 45,727 shares of company stock valued at $10,022,232 over the last three months. 0.49% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of DRI. Twin Peaks Wealth Advisors LLC acquired a new stake in shares of Darden Restaurants during the second quarter worth $26,000. Grove Bank & Trust boosted its holdings in shares of Darden Restaurants by 171.4% during the 1st quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator's stock valued at $28,000 after acquiring an additional 84 shares during the last quarter. Elevation Point Wealth Partners LLC purchased a new position in Darden Restaurants during the second quarter valued at approximately $29,000. True Wealth Design LLC boosted its stake in Darden Restaurants by 419.2% during the second quarter. True Wealth Design LLC now owns 135 shares of the restaurant operator's stock worth $29,000 after buying an additional 109 shares during the period. Finally, ORG Partners LLC lifted its stake in Darden Restaurants by 108.8% in the first quarter. ORG Partners LLC now owns 142 shares of the restaurant operator's stock worth $30,000 after acquiring an additional 74 shares during the period. Institutional investors and hedge funds 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.