TCW Group Inc. Decreases Stake in Darden Restaurants, Inc. (NYSE:DRI)

TCW Group Inc. lessened its position in shares of Darden Restaurants, Inc. (NYSE:DRI) by 5.9% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The firm owned 354,073 shares of the restaurant operator’s stock after selling 22,294 shares during the quarter. TCW Group Inc.’s holdings in Darden Restaurants were worth $58,174,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of DRI. Fortitude Family Office LLC acquired a new stake in shares of Darden Restaurants during the 4th quarter worth approximately $29,000. Hartford Financial Management Inc. lifted its position in shares of Darden Restaurants by 65.1% during the 4th quarter. Hartford Financial Management Inc. now owns 180 shares of the restaurant operator’s stock worth $30,000 after purchasing an additional 71 shares during the last quarter. Tennessee Valley Asset Management Partners acquired a new stake in Darden Restaurants during the 4th quarter worth $33,000. McGlone Suttner Wealth Management Inc. acquired a new position in Darden Restaurants in the fourth quarter valued at $35,000. Finally, Union Savings Bank increased its stake in shares of Darden Restaurants by 44.0% during the fourth quarter. Union Savings Bank now owns 216 shares of the restaurant operator’s stock worth $35,000 after acquiring an additional 66 shares during the period. Institutional investors and hedge funds own 93.64% of the company’s stock.

Darden Restaurants Price Performance

DRI stock traded down $1.05 during midday trading on Thursday, reaching $147.66. The company had a trading volume of 921,163 shares, compared to its average volume of 1,174,554. Darden Restaurants, Inc. has a 1-year low of $133.36 and a 1-year high of $176.84. The company has a debt-to-equity ratio of 0.63, a current ratio of 0.39 and a quick ratio of 0.25. The stock has a 50 day moving average price of $157.13 and a 200-day moving average price of $160.42. The company has a market capitalization of $17.62 billion, a price-to-earnings ratio of 17.37, a price-to-earnings-growth ratio of 1.65 and a beta of 1.27.

Darden Restaurants (NYSE:DRI) last issued its quarterly 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). Darden Restaurants had a net margin of 9.24% and a return on equity of 49.94%. The business had revenue of $2.97 billion during the quarter, compared to analyst estimates of $3.02 billion. During the same period last year, the firm posted $2.34 earnings per share. Darden Restaurants’s quarterly revenue was up 6.8% compared to the same quarter last year. Equities research analysts expect that Darden Restaurants, Inc. will post 8.85 earnings per share for the current year.

Darden Restaurants declared that its board has approved a share repurchase program on Thursday, March 21st that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the restaurant operator to purchase up to 5% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

Darden Restaurants Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, May 1st. Stockholders of record on Wednesday, April 10th were paid a $1.31 dividend. This represents a $5.24 dividend on an annualized basis and a dividend yield of 3.55%. The ex-dividend date of this dividend was Tuesday, April 9th. Darden Restaurants’s payout ratio is presently 61.43%.

Insiders Place Their Bets

In related news, SVP Matthew R. Broad sold 4,707 shares of the company’s stock in a transaction on Thursday, April 25th. The stock was 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 in the company, valued at $2,994,800.85. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In other news, SVP Matthew R. Broad sold 4,707 shares of the stock in a transaction that occurred on Thursday, April 25th. The stock was sold at an average price of $156.15, for a total value of $734,998.05. Following the sale, the senior vice president now directly owns 19,179 shares in the company, valued at $2,994,800.85. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director William S. Simon sold 1,219 shares of Darden Restaurants stock in a transaction 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 completion of the transaction, the director now owns 6,281 shares in the company, valued at $993,717.01. The disclosure for this sale can be found here. Over the last three months, insiders have sold 13,599 shares of company stock valued at $2,197,891. 0.85% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several analysts have issued reports on DRI shares. Stifel Nicolaus upped their price target on shares of Darden Restaurants from $185.00 to $190.00 and gave the company a “buy” rating in a report on Tuesday, March 19th. 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. BTIG Research raised shares of Darden Restaurants from a “neutral” rating to a “buy” rating and set a $175.00 price target on the stock in a report on Friday, May 17th. JPMorgan Chase & Co. upped their price target on shares of Darden Restaurants from $170.00 to $180.00 and gave the company an “overweight” rating in a report on Tuesday, March 19th. Finally, Citigroup dropped their price target on shares of Darden Restaurants from $200.00 to $192.00 and set a “buy” rating for the company in a research report on Friday, March 22nd. Five investment analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $178.67.

Darden Restaurants 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.