TD Cowen Reiterates Buy Rating for Darden Restaurants (NYSE:DRI)

Darden Restaurants (NYSE:DRI)‘s stock had its “buy” rating reiterated by research analysts at TD Cowen in a report released on Monday, Benzinga reports. They presently have a $190.00 price target on the restaurant operator’s stock. TD Cowen’s target price indicates a potential upside of 21.87% from the stock’s previous close.

Several other analysts have also issued reports on the company. Bank of America increased their target price on Darden Restaurants from $193.00 to $198.00 and gave the stock a “buy” rating in a report on Monday, March 18th. BMO Capital Markets boosted their target price on shares of Darden Restaurants from $160.00 to $165.00 and gave the company a “market perform” rating in a research report on Thursday, March 7th. Oppenheimer cut their price target on shares of Darden Restaurants from $186.00 to $182.00 and set an “outperform” rating for the company in a report on Friday, March 22nd. Citigroup decreased their price objective on shares of Darden Restaurants from $200.00 to $192.00 and set a “buy” rating on the stock in a research note on Friday, March 22nd. Finally, Guggenheim upped their target price on Darden Restaurants from $180.00 to $185.00 and gave the stock a “buy” rating in a research note on Tuesday, March 19th. Five investment analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $178.85.

Darden Restaurants Price Performance

NYSE:DRI opened at $155.91 on Monday. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.25 and a current ratio of 0.39. The firm has a market cap of $18.61 billion, a price-to-earnings ratio of 18.28, a P/E/G ratio of 1.68 and a beta of 1.25. Darden Restaurants has a 52 week low of $133.36 and a 52 week high of $176.84. The firm’s 50-day simple moving average is $164.88 and its 200 day simple moving average is $159.13.

Darden Restaurants (NYSE:DRI) last released its quarterly earnings results on Thursday, March 21st. The restaurant operator reported $2.62 earnings per share for the quarter, missing analysts’ consensus estimates of $2.63 by ($0.01). The business had revenue of $2.97 billion during the quarter, compared to analyst estimates of $3.02 billion. Darden Restaurants had a net margin of 9.24% and a return on equity of 49.94%. The firm’s quarterly revenue was up 6.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.34 earnings per share. As a group, sell-side analysts predict that Darden Restaurants will post 8.85 earnings per share for the current year.

Darden Restaurants announced that its Board of Directors has approved a share buyback plan on Thursday, March 21st that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the restaurant operator to buy up to 5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other news, SVP Matthew R. Broad sold 6,831 shares of the business’s stock in a transaction dated Wednesday, January 31st. The stock was sold at an average price of $163.26, for a total value of $1,115,229.06. Following the transaction, the senior vice president now directly owns 19,141 shares of the company’s stock, valued at approximately $3,124,959.66. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In other Darden Restaurants news, insider Melvin John Martin sold 7,673 shares of Darden Restaurants stock in a transaction on Wednesday, March 27th. The shares were sold at an average price of $165.52, for a total value of $1,270,034.96. Following the completion of the sale, the insider now directly owns 17,208 shares of the company’s stock, valued at $2,848,268.16. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, SVP Matthew R. Broad sold 6,831 shares of the stock in a transaction dated Wednesday, January 31st. The stock was sold at an average price of $163.26, for a total transaction of $1,115,229.06. Following the transaction, the senior vice president now directly owns 19,141 shares in the company, valued at approximately $3,124,959.66. The disclosure for this sale can be found here. In the last ninety days, insiders sold 15,723 shares of company stock worth $2,578,122. Company insiders own 0.85% of the company’s stock.

Institutional Trading of Darden Restaurants

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Rise Advisors LLC grew its stake in Darden Restaurants by 131.3% in the first quarter. Rise Advisors LLC now owns 155 shares of the restaurant operator’s stock valued at $26,000 after acquiring an additional 88 shares during the period. Fortitude Family Office LLC bought a new position in shares of Darden Restaurants in the 4th quarter worth $29,000. Hartford Financial Management Inc. grew its position in Darden Restaurants by 65.1% in the 4th 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 during the period. Tennessee Valley Asset Management Partners bought a new stake in Darden Restaurants during the 4th quarter valued at $33,000. Finally, McGlone Suttner Wealth Management Inc. acquired a new position in Darden Restaurants during the fourth quarter worth $35,000. 93.64% of the stock is owned by institutional investors.

Darden Restaurants Company 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.