Darden Restaurants (NYSE:DRI) Price Target Raised to $240.00

Darden Restaurants (NYSE:DRI) had its price target upped by investment analysts at JPMorgan Chase & Co. from $218.00 to $240.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has an “overweight” rating on the restaurant operator’s stock. JPMorgan Chase & Co.‘s price target would indicate a potential upside of 10.97% from the company’s current price.

Several other analysts have also weighed in on the company. Truist Financial raised their price objective on Darden Restaurants from $230.00 to $252.00 and gave the company a “buy” rating in a research note on Wednesday, June 18th. Stephens increased their price target on Darden Restaurants from $200.00 to $212.00 and gave the company an “equal weight” rating in a research note on Monday. UBS Group raised their price objective on Darden Restaurants from $225.00 to $245.00 and gave the company a “buy” rating in a report on Monday, June 16th. Evercore ISI upped their price objective on Darden Restaurants from $230.00 to $250.00 and gave the company an “outperform” rating in a research note on Monday, June 16th. Finally, Morgan Stanley raised their price objective on shares of Darden Restaurants from $215.00 to $235.00 and gave the company an “overweight” rating in a report on Wednesday, June 18th. Nine analysts have rated the stock with a hold rating and seventeen have given a buy rating to the stock. According to data from MarketBeat.com, Darden Restaurants presently has a consensus rating of “Moderate Buy” and an average target price of $224.60.

Darden Restaurants Stock Down 0.5%

DRI stock opened at $216.27 on Wednesday. Darden Restaurants has a 52 week low of $135.87 and a 52 week high of $228.27. The business has a 50-day simple moving average of $209.92 and a 200 day simple moving average of $197.31. 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 has a market cap of $25.31 billion, a PE ratio of 24.35, a price-to-earnings-growth ratio of 2.10 and a beta of 0.75.

Darden Restaurants (NYSE:DRI) last issued its quarterly earnings results on Friday, June 20th. The restaurant operator reported $2.98 earnings per share for the quarter, topping analysts’ consensus estimates of $2.97 by $0.01. The company had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.25 billion. Darden Restaurants had a net margin of 8.69% and a return on equity of 51.81%. The firm’s quarterly revenue was up 10.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.65 EPS. Sell-side analysts anticipate that Darden Restaurants will post 9.52 EPS for the current fiscal year.

Darden Restaurants declared that its board has initiated a share buyback plan on Friday, June 20th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the restaurant operator to buy up to 3.8% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, SVP Susan M. Connelly sold 4,735 shares of Darden Restaurants stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $223.78, for a total value of $1,059,598.30. Following the completion of the sale, the senior vice president now owns 4,602 shares of the company’s stock, valued at approximately $1,029,835.56. This trade represents a 50.71% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, SVP Douglas J. Milanes sold 11,948 shares of the company’s stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $222.08, for a total transaction of $2,653,411.84. Following the transaction, the senior vice president now owns 147 shares in the company, valued at approximately $32,645.76. The trade was a 98.78% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 22,463 shares of company stock valued at $4,997,442 over the last ninety days. 0.58% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Darden Restaurants

Several large investors have recently added to or reduced their stakes in DRI. Charles Schwab Investment Management Inc. grew its holdings in Darden Restaurants by 6.6% during the first quarter. Charles Schwab Investment Management Inc. now owns 3,998,200 shares of the restaurant operator’s stock worth $830,666,000 after buying an additional 247,542 shares in the last quarter. Raymond James Financial Inc. grew its position in Darden Restaurants by 4.6% in the 1st quarter. Raymond James Financial Inc. now owns 3,601,340 shares of the restaurant operator’s stock worth $748,215,000 after purchasing an additional 157,305 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of Darden Restaurants by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 2,845,302 shares of the restaurant operator’s stock valued at $530,121,000 after acquiring an additional 39,189 shares in the last quarter. Earnest Partners LLC increased its position in shares of Darden Restaurants by 0.3% during the fourth quarter. Earnest Partners LLC now owns 1,609,329 shares of the restaurant operator’s stock valued at $300,446,000 after acquiring an additional 4,454 shares during the last quarter. Finally, Northern Trust Corp lifted its holdings in Darden Restaurants by 12.3% during the fourth quarter. Northern Trust Corp now owns 1,441,518 shares of the restaurant operator’s stock worth $269,117,000 after acquiring an additional 158,168 shares during the period. 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.