Stocks

Insider Selling Report: Darden Restaurants, Inc. (NYSE:DRI)

Published January 24, 2025

Darden Restaurants, Inc. (NYSE:DRI) Senior Vice President Matthew R. Broad has recently sold a significant number of shares from his holdings. On January 21st, he sold 12,759 shares of Darden stock at an average price of $187.37 per share, resulting in a total transaction value of approximately $2,390,653.83. After this sale, Broad now holds 14,328 shares of the company, which are currently valued at around $2,684,637.36. This sale marks a notable 47.10% reduction in his ownership of the stock. The details of this transaction have been officially reported in a filing with the SEC, which investors can access for further details.

Darden Restaurants has shown fluctuating stock performance recently. On Wednesday, the stock experienced a decline, trading down by $0.81 to reach $185.69 during mid-day trading. The trading volume on that day stood at 1,047,035 shares, which is slightly lower than its average trading volume of 1,155,595 shares. Darden Restaurants has a 50-day moving average of $176.35 and a 200-day moving average of $162.74. The stock has a one-year low of $135.87 and a one-year high of $189.18, highlighting its volatility. With a market capitalization of $21.75 billion, the company currently has a P/E ratio of 21.27 and a P/E/G ratio of 2.00, alongside a beta of 1.31. In terms of liquidity, Darden Restaurants has a current ratio of 0.37, a quick ratio of 0.23, and a debt-to-equity ratio of 1.02.

Quarterly Earnings Performance

Recently, Darden Restaurants published its quarterly earnings report on December 19th. For the quarter, the company reported earnings of $2.03 per share, which matched the consensus estimate exactly. The revenue generated during the quarter was reported at $2.89 billion, slightly above the expected $2.87 billion. The firm achieved a return on equity of 50.12%, alongside a net margin of 9.01%. Comparatively, this quarter’s revenue reflects a 6.0% increase from the same period last year. In the previous year, the company reported earnings per share of $1.84. Analysts are projecting Darden Restaurants to achieve an average of 9.52 earnings per share for the current financial year.

Dividend Announcement

In addition to stock sales and earnings reports, Darden Restaurants has also announced a quarterly dividend set to be distributed on February 3rd. Shareholders who are on record as of January 10th will receive a dividend payout of $1.40 per share. The ex-dividend date for this payout is January 10th, and this translates to an annual dividend of $5.60, yielding 3.02%. Darden's current dividend payout ratio is 64.15%, showing a commitment to returning value to shareholders.

Institutional Investments in Darden Restaurants

There has been notable activity from institutional investors regarding Darden Restaurants shares. Recently, Perigon Wealth Management LLC acquired a new investment in Darden during the fourth quarter, valued at approximately $221,000. Another firm, Webster Bank N.A., also took a step into the company by purchasing a stake worth around $51,000. KBC Group NV increased its position in Darden by 0.5%, gaining an additional 60 shares during the fourth quarter, bringing its total holdings to 13,371 shares valued at $2,497,000. Additionally, Blue Trust Inc. raised its position by 12.2%, bringing its total to 8,362 shares valued at $1,561,000. Overall, institutional investors currently own 93.64% of Darden's stock, indicating strong confidence in the company's future.

Analyst Outlook

Darden Restaurants continues to be a subject of interest among financial analysts. Several firms have revised their target prices for the stock. For instance, Wedbush recently upgraded its target price from $200.00 to $220.00 while maintaining an “outperform” rating. Similarly, Sanford C. Bernstein raised their price objective from $180.00 to $215.00 after upgrading Darden from a “market perform” to an “outperform” rating. Barclays has also increased its target price from $206.00 to $230.00 with an “overweight” rating. Truist Financial upped their price target from $195.00 to $200.00, while BMO Capital Markets adjusted theirs from $165.00 to $175.00, maintaining a “market perform” rating. Currently, the consensus rating for Darden Restaurants is categorized as a “Moderate Buy” with an average target price of $190.52 based on input from various analysts.

About Darden Restaurants

Darden Restaurants, Inc., along with its subsidiaries, is involved in owning and operating full-service restaurants across the United States and Canada. Its popular brands include 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.

Insider, Selling, Stock