Citizens Financial Group Inc. RI Reduces Stake in Darden Restaurants, Inc. (NYSE:DRI)

Citizens Financial Group Inc. RI reduced its stake in shares of Darden Restaurants, Inc. (NYSE:DRI) by 2.3% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 49,553 shares of the restaurant operator’s stock after selling 1,181 shares during the quarter. Citizens Financial Group Inc. RI’s holdings in Darden Restaurants were worth $8,141,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. CWM LLC raised its holdings in Darden Restaurants by 20.6% during the 3rd quarter. CWM LLC now owns 2,085 shares of the restaurant operator’s stock valued at $299,000 after buying an additional 356 shares during the period. AE Wealth Management LLC lifted its holdings in shares of Darden Restaurants by 46.6% in the 3rd quarter. AE Wealth Management LLC now owns 4,698 shares of the restaurant operator’s stock worth $673,000 after acquiring an additional 1,494 shares during the last quarter. Private Trust Co. NA boosted its stake in shares of Darden Restaurants by 53.3% during the 3rd quarter. Private Trust Co. NA now owns 644 shares of the restaurant operator’s stock worth $92,000 after purchasing an additional 224 shares during the period. Caprock Group LLC grew its holdings in Darden Restaurants by 83.5% during the 3rd quarter. Caprock Group LLC now owns 2,887 shares of the restaurant operator’s stock valued at $414,000 after purchasing an additional 1,314 shares during the last quarter. Finally, Czech National Bank grew its holdings in Darden Restaurants by 47.6% during the 3rd quarter. Czech National Bank now owns 21,127 shares of the restaurant operator’s stock valued at $3,026,000 after purchasing an additional 6,811 shares during the last quarter. 93.64% of the stock is currently owned by hedge funds and other institutional investors.

Darden Restaurants Price Performance

Shares of DRI opened at $156.10 on Friday. The company has a 50 day moving average price of $164.55 and a 200-day moving average price of $159.38. Darden Restaurants, Inc. has a fifty-two week low of $133.36 and a fifty-two week high of $176.84. The stock has a market capitalization of $18.63 billion, a PE ratio of 18.30, a PEG ratio of 1.72 and a beta of 1.25. 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) last announced its quarterly earnings results on Thursday, March 21st. The restaurant operator reported $2.62 earnings per share for the quarter, missing the consensus estimate of $2.63 by ($0.01). Darden Restaurants had a return on equity of 49.94% and a net margin of 9.24%. The business had revenue of $2.97 billion during the quarter, compared to analysts’ expectations of $3.02 billion. During the same period in the previous year, the company posted $2.34 EPS. Darden Restaurants’s revenue for the quarter was up 6.8% on a year-over-year basis. Equities analysts predict that Darden Restaurants, Inc. will post 8.85 earnings per share for the current fiscal year.

Darden Restaurants declared that its Board of Directors has initiated a share buyback plan on Thursday, March 21st that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the restaurant operator to buy up to 5% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Darden Restaurants Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, May 1st. Investors of record on Wednesday, April 10th will be given a dividend of $1.31 per share. The ex-dividend date of this dividend is Tuesday, April 9th. This represents a $5.24 dividend on an annualized basis and a yield of 3.36%. Darden Restaurants’s payout ratio is 61.43%.

Insider Activity at Darden Restaurants

In related news, SVP Matthew R. Broad sold 4,707 shares of the stock in a transaction that occurred on Thursday, April 25th. The shares were sold at an average price of $156.15, for a total transaction of $734,998.05. Following the completion of the sale, the senior vice president now owns 19,179 shares of the company’s stock, valued at $2,994,800.85. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In other Darden Restaurants news, insider Melvin John Martin sold 7,673 shares of the company’s stock in a transaction that occurred on Wednesday, March 27th. The shares were sold at an average price of $165.52, for a total transaction of $1,270,034.96. Following the transaction, the insider now owns 17,208 shares in the company, valued at approximately $2,848,268.16. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Matthew R. Broad sold 4,707 shares of the company’s stock in a transaction that occurred on Thursday, April 25th. The shares were sold at an average price of $156.15, for a total transaction of $734,998.05. Following the transaction, the senior vice president now owns 19,179 shares in the company, valued at approximately $2,994,800.85. The disclosure for this sale can be found here. Insiders sold 20,430 shares of company stock valued at $3,313,120 over the last 90 days. Insiders own 0.85% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on DRI shares. Citigroup cut their price target on shares of Darden Restaurants from $200.00 to $192.00 and set a “buy” rating on the stock in a report on Friday, March 22nd. Guggenheim upped their price target on shares of Darden Restaurants from $180.00 to $185.00 and gave the company a “buy” rating in a report on Tuesday, March 19th. Bank of America upped their price target on shares of Darden Restaurants from $193.00 to $198.00 and gave the company a “buy” rating in a report on Monday, March 18th. Morgan Stanley cut their price target 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. Finally, Stephens began coverage on shares of Darden Restaurants in a report on Friday, April 12th. They set an “equal weight” rating and a $170.00 price target on the stock. Five research analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company’s stock. According to MarketBeat.com, Darden Restaurants currently has an average rating of “Moderate Buy” and an average target price of $178.85.

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.