KeyCorp Boosts Darden Restaurants (NYSE:DRI) Price Target to $245.00

Darden Restaurants (NYSE:DRI) had its price target boosted by KeyCorp from $230.00 to $245.00 in a research report released on Monday,Benzinga reports. The firm currently has an overweight rating on the restaurant operator’s stock.

DRI has been the subject of several other research reports. Barclays upped their price target on Darden Restaurants from $230.00 to $235.00 and gave the stock an “overweight” rating in a report on Friday, March 21st. TD Securities reiterated a “hold” rating and issued a $215.00 target price on shares of Darden Restaurants in a research note on Friday. Wells Fargo & Company increased their target price on shares of Darden Restaurants from $200.00 to $225.00 and gave the company an “equal weight” rating in a report on Tuesday, June 17th. Citigroup boosted their price target on shares of Darden Restaurants from $223.00 to $229.00 and gave the stock a “buy” rating in a report on Friday, March 21st. Finally, Stephens reiterated an “equal weight” rating and issued a $200.00 price objective on shares of Darden Restaurants in a research note on Friday. Nine analysts have rated the stock with a hold rating and eighteen have given a buy rating to the company. According to MarketBeat.com, Darden Restaurants presently has an average rating of “Moderate Buy” and a consensus price target of $219.27.

Darden Restaurants Price Performance

DRI stock opened at $221.27 on Monday. The company has a quick ratio of 0.28, a current ratio of 0.42 and a debt-to-equity ratio of 0.92. The company’s fifty day simple moving average is $208.77 and its 200 day simple moving average is $196.67. Darden Restaurants has a 12-month low of $135.87 and a 12-month high of $228.27. The firm has a market cap of $25.90 billion, a price-to-earnings ratio of 24.92, a PEG ratio of 2.27 and a beta of 0.75.

Darden Restaurants (NYSE:DRI) last announced its quarterly earnings data on Friday, June 20th. The restaurant operator reported $2.98 EPS for the quarter, beating analysts’ consensus estimates of $2.97 by $0.01. The firm had revenue of $3.27 billion during the quarter, compared to analysts’ expectations of $3.25 billion. Darden Restaurants had a return on equity of 51.81% and a net margin of 8.69%. The company’s revenue for the quarter was up 10.6% compared to the same quarter last year. During the same quarter last year, the firm posted $2.65 earnings per share. On average, analysts expect that Darden Restaurants will post 9.52 earnings per share for the current year.

Darden Restaurants Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 1st. Shareholders of record on Thursday, July 10th will be paid a $1.50 dividend. The ex-dividend date is Thursday, July 10th. This is a boost from Darden Restaurants’s previous quarterly dividend of $1.40. This represents a $6.00 annualized dividend and a yield of 2.71%. Darden Restaurants’s dividend payout ratio is currently 63.06%.

Darden Restaurants declared that its board has approved a stock buyback program on Friday, June 20th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the restaurant operator to purchase up to 3.8% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Insiders Place Their Bets

In other news, insider Laura B. Williamson sold 2,289 shares of Darden Restaurants stock in a transaction on Wednesday, March 26th. The shares were sold at an average price of $207.26, for a total transaction of $474,418.14. Following the completion of the sale, the insider now directly owns 10,056 shares of the company’s stock, valued at approximately $2,084,206.56. The trade was a 18.54% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 0.58% of the company’s stock.

Institutional Investors Weigh In On Darden Restaurants

A number of large investors have recently added to or reduced their stakes in DRI. TCTC Holdings LLC bought a new position in shares of Darden Restaurants during the 4th quarter valued at about $28,000. Grove Bank & Trust boosted its stake in Darden Restaurants by 171.4% in the first quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator’s stock worth $28,000 after buying an additional 84 shares in the last quarter. ORG Partners LLC grew its position in Darden Restaurants by 108.8% during the first quarter. ORG Partners LLC now owns 142 shares of the restaurant operator’s stock valued at $30,000 after acquiring an additional 74 shares during the last quarter. Centennial Bank AR bought a new stake in shares of Darden Restaurants in the 1st quarter worth approximately $31,000. Finally, Alpine Bank Wealth Management purchased a new stake in shares of Darden Restaurants in the 1st quarter valued at $34,000. Hedge funds and other institutional investors own 93.64% of the company’s stock.

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.