IFM Investors Pty Ltd Lowers Stock Position in Darden Restaurants, Inc. (NYSE:DRI)

IFM Investors Pty Ltd cut its stake in shares of Darden Restaurants, Inc. (NYSE:DRI) by 2.6% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 24,313 shares of the restaurant operator’s stock after selling 659 shares during the period. IFM Investors Pty Ltd’s holdings in Darden Restaurants were worth $4,064,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Rise Advisors LLC lifted its stake in Darden Restaurants by 131.3% during the 1st quarter. Rise Advisors LLC now owns 155 shares of the restaurant operator’s stock worth $26,000 after acquiring an additional 88 shares in the last quarter. Fortitude Family Office LLC purchased a new stake in Darden Restaurants during the fourth quarter worth about $29,000. Hartford Financial Management Inc. grew its holdings in shares of Darden Restaurants by 65.1% in the fourth quarter. Hartford Financial Management Inc. now owns 180 shares of the restaurant operator’s stock valued at $30,000 after purchasing an additional 71 shares in the last quarter. Tennessee Valley Asset Management Partners purchased a new stake in Darden Restaurants during the 4th quarter worth approximately $33,000. Finally, McGlone Suttner Wealth Management Inc. acquired a new stake in Darden Restaurants during the 4th quarter worth approximately $35,000. 93.64% of the stock is owned by hedge funds and other institutional investors.

Darden Restaurants Stock Performance

NYSE:DRI traded down $0.44 during trading hours on Friday, reaching $156.10. 886,615 shares of the company’s stock were exchanged, compared to its average volume of 1,153,157. Darden Restaurants, Inc. has a 1-year low of $133.36 and a 1-year high of $176.84. The company has a quick ratio of 0.25, a current ratio of 0.39 and a debt-to-equity ratio of 0.63. The firm has a market capitalization of $18.63 billion, a price-to-earnings ratio of 18.30, a P/E/G ratio of 1.72 and a beta of 1.25. The company has a 50-day moving average of $164.55 and a 200 day moving average of $159.23.

Darden Restaurants (NYSE:DRI) last announced its earnings results on Thursday, March 21st. The restaurant operator reported $2.62 EPS for the quarter, missing analysts’ consensus estimates 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 analysts’ expectations of $3.02 billion. During the same period in the previous year, the company posted $2.34 earnings per share. Darden Restaurants’s quarterly revenue was up 6.8% on a year-over-year basis. Research analysts anticipate that Darden Restaurants, Inc. will post 8.85 EPS for the current year.

Darden Restaurants Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 1st. Shareholders of record on Wednesday, April 10th will be given a dividend of $1.31 per share. The ex-dividend date 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%.

Darden Restaurants declared that its board has authorized a share buyback program on Thursday, March 21st that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the restaurant operator to purchase up to 5% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its stock is undervalued.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. Morgan Stanley decreased their target price on Darden Restaurants from $184.00 to $180.00 and set an “overweight” rating for the company in a report on Friday, March 22nd. Oppenheimer reduced their target price on shares of Darden Restaurants from $186.00 to $182.00 and set an “outperform” rating on the stock in a report on Friday, March 22nd. Truist Financial reissued a “buy” rating and issued a $190.00 price objective on shares of Darden Restaurants in a research report on Friday, March 22nd. Citigroup dropped their target price on Darden Restaurants from $200.00 to $192.00 and set a “buy” rating on the stock in a report on Friday, March 22nd. Finally, TD Cowen reaffirmed a “buy” rating and set a $190.00 price target on shares of Darden Restaurants in a report on Monday, April 22nd. Five investment analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $178.85.

Insider Buying and Selling at Darden Restaurants

In related news, SVP Matthew R. Broad sold 4,707 shares of the 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 directly owns 19,179 shares of the company’s stock, valued at $2,994,800.85. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In related news, SVP Matthew R. Broad sold 4,707 shares of the stock in a transaction dated 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 transaction, the senior vice president now directly 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 the SEC website. Also, Director William S. Simon sold 1,219 shares of Darden Restaurants stock in a transaction that occurred 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 sale, the director now directly owns 6,281 shares in the company, valued at approximately $993,717.01. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 20,430 shares of company stock worth $3,313,120. 0.85% of the stock is currently owned by insiders.

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.