Darden Restaurants, Inc. (NYSE:DRI) Short Interest Update

Darden Restaurants, Inc. (NYSE:DRI) saw a significant increase in short interest during 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. Approximately 5.0% of the shares of the stock are short sold. Based on an average daily volume of 1,150,000 shares, the short-interest ratio is presently 5.1 days.

Wall Street Analyst Weigh In

DRI has been the topic of a number of recent research reports. Stephens began coverage on Darden Restaurants in a research note on Friday, April 12th. They set an “equal weight” rating and a $170.00 price objective on the stock. Guggenheim lifted their price target on Darden Restaurants from $180.00 to $185.00 and gave the stock a “buy” rating in a research note on Tuesday, March 19th. JPMorgan Chase & Co. raised their target price on shares of Darden Restaurants from $170.00 to $180.00 and gave the stock an “overweight” rating in a report on Tuesday, March 19th. TD Cowen reissued a “buy” rating and issued a $190.00 target price on shares of Darden Restaurants in a research note on Wednesday, April 10th. Finally, StockNews.com lowered Darden Restaurants from a “buy” rating to a “hold” rating in a research report on Thursday, January 4th. Five research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $178.85.

Darden Restaurants Stock Up 0.1 %

Darden Restaurants stock traded up $0.08 during mid-day trading on Wednesday, hitting $154.14. The company had a trading volume of 1,066,502 shares, compared to its average volume of 1,399,875. Darden Restaurants has a 12 month low of $133.36 and a 12 month high of $176.84. The company has a market capitalization of $18.40 billion, a PE ratio of 18.07, a price-to-earnings-growth ratio of 1.69 and a beta of 1.25. The stock’s 50 day moving average price is $166.11 and its two-hundred day moving average price is $158.66. The company has a current ratio of 0.39, a quick ratio of 0.25 and a debt-to-equity ratio of 0.63.

Darden Restaurants (NYSE:DRI) last issued its earnings results on Thursday, March 21st. The restaurant operator reported $2.62 earnings per share (EPS) 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 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 company’s quarterly revenue was up 6.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.34 EPS. As a group, sell-side analysts anticipate that Darden Restaurants will post 8.85 earnings per share for the current fiscal year.

Darden Restaurants Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, May 1st. Shareholders of record on Wednesday, April 10th will be paid a dividend of $1.31 per share. This represents a $5.24 annualized dividend and a yield of 3.40%. The ex-dividend date of this dividend is Tuesday, April 9th. Darden Restaurants’s dividend payout ratio is currently 61.43%.

Darden Restaurants announced that its Board of Directors has initiated a stock buyback 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 stock through open market purchases. Stock repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In other news, SVP Matthew R. Broad sold 6,831 shares of the firm’s stock in a transaction on Wednesday, January 31st. The shares were sold at an average price of $163.26, for a total transaction of $1,115,229.06. Following the sale, the senior vice president now owns 19,141 shares in the company, valued at approximately $3,124,959.66. The transaction was disclosed in a filing with the SEC, 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 transaction 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 document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Matthew R. Broad sold 6,831 shares of the business’s stock in a transaction that occurred on Wednesday, January 31st. The stock was sold at an average price of $163.26, for a total transaction of $1,115,229.06. Following the completion of the sale, the senior vice president now owns 19,141 shares of the company’s stock, valued at $3,124,959.66. The disclosure for this sale can be found here. Over the last three months, insiders have sold 15,723 shares of company stock worth $2,578,122. Insiders own 0.85% of the company’s stock.

Hedge Funds Weigh In On Darden Restaurants

Hedge funds and other institutional investors have recently modified their holdings of the company. Tokio Marine Asset Management Co. Ltd. grew its position in Darden Restaurants by 7.2% during the third quarter. Tokio Marine Asset Management Co. Ltd. now owns 3,338 shares of the restaurant operator’s stock valued at $478,000 after buying an additional 224 shares during the period. Prime Capital Investment Advisors LLC lifted its position in Darden Restaurants by 19.7% during the fourth quarter. Prime Capital Investment Advisors LLC now owns 2,789 shares of the restaurant operator’s stock valued at $458,000 after purchasing an additional 459 shares in the last quarter. International Assets Investment Management LLC bought a new stake in Darden Restaurants during the fourth quarter valued at about $17,202,000. Invera Wealth Advisors LLC purchased a new stake in Darden Restaurants in the fourth quarter worth about $1,038,000. Finally, American Century Companies Inc. raised its stake in shares of Darden Restaurants by 21.1% in the third quarter. American Century Companies Inc. now owns 197,738 shares of the restaurant operator’s stock worth $28,320,000 after buying an additional 34,478 shares during the period. 93.64% of the stock is owned by institutional investors.

About Darden Restaurants

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.