Clarus Wealth Advisors recently announced the acquisition of a new position in Darden Restaurants, Inc. (NYSE:DRI) during the second quarter of this year. According to their Form 13F filing with the Securities and Exchange Commission (SEC), Clarus Wealth Advisors purchased 1,385 shares of the restaurant operator’s stock, which were valued at approximately $226,000.
Various research firms have shared their insights on Darden Restaurants in recent times. Barclays raised their price target on the company’s shares from $173.00 to $177.00 in a research note published on June 23rd. On the other hand, Royal Bank of Canada decreased their price target from $185.00 to $183.00 for Darden Restaurants in another report issued on the same day.
In addition, Piper Sandler initiated coverage on Darden Restaurants with a “neutral” rating and set a price objective of $167.00 for the company on July 17th. StockNews.com also upgraded Darden Restaurants’ rating from “hold” to “buy” in a research note dated August 25th. Lastly, Bank of America increased their price target from $172.00 to $187.00 for Darden Restaurants’ shares in a research report published on June 19th.
Overall, six equities research analysts have given a hold rating and fifteen have assigned a buy rating to Darden Restaurants’ stock. Bloomberg reports that there is a consensus among industry experts that rates Darden Restaurants as a “Moderate Buy,” with an average target price of $168.22.
On Friday, September 17th, NYSE:DRI opened at $150.06 per share. The company demonstrates strong financials with a quick ratio of 0.37 and current ratio of 0.51 indicating its ability to meet short-term obligations efficiently. Furthermore, it maintains a debt-to-equity ratio of 0.40, signifying a balanced capital structure. Over the past 52 weeks, Darden Restaurants has demonstrated resilience, with its stock trading between a low of $120.20 and a high of $173.06.
The stock’s 50-day moving average stands at $160.75, while its 200-day moving average is at $157.47, indicating relative stability in the company’s stock price over time. Darden Restaurants boasts a market capitalization of $18.14 billion, a reasonable price-to-earnings (PE) ratio of 18.76, and a P/E/G ratio of 1.64 which suggests modest growth prospects. Additionally, the company has exhibited a beta of 1.24.
Overall, Clarus Wealth Advisors’ recent acquisition of Darden Restaurants’ shares highlights their confidence in the restaurant operator’s potential for continued growth and profitability in the industry as reflected by positive ratings from various research firms. With robust financials and steady performance over time, Darden Restaurants remains an intriguing investment opportunity for those seeking exposure to the restaurant sector.
Institutional Investors and Hedge Funds Show Confidence in Darden Restaurants’ Growth Potential
Darden Restaurants, a renowned restaurant operator that is listed on the New York Stock Exchange under the ticker symbol DRI, has seen significant activity from institutional investors and hedge funds in recent times. This comes as no surprise given the strong performance and potential growth prospects of the company.
Resurgent Financial Advisors LLC acquired a new stake in Darden Restaurants during the fourth quarter of last year. The acquisition was valued at $29,000, indicating their belief in the future success of the company. Similarly, HHM Wealth Advisors LLC also purchased shares of Darden Restaurants in the first quarter, worth approximately $33,000.
Hanson & Doremus Investment Management showed their confidence in Darden Restaurants by increasing their stake by 43.3% during the same period. Their total ownership now amounts to 235 shares valued at $36,000. Massmutual Trust Co. FSB ADV also grew its holdings in Darden Restaurants by 63.4% in the first quarter, further exemplifying institutional support for the company.
Geneos Wealth Management Inc. joined other institutional investors by increasing their stake in Darden Restaurants during the first quarter as well. Their investment saw a 42% increase and they now own 240 shares worth approximately $37,000.
These investments from institutional investors highlight their interest and confidence in Darden Restaurants’ growth potential. Collectively, hedge funds and other institutional investors currently own an impressive 94.53% of the company’s stock.
In other news related to Darden Restaurants, Senior Vice President Douglas J. Milanes recently sold 6,905 shares of company stock on June 26th for an average price of $160.39 per share. This transaction amounted to a total value of $1,107,492.95. Following this sale, Milanes now holds 5,374 shares valued at around $861,935.86.
Another senior vice president of Darden Restaurants, Matthew R. Broad, sold 18,578 shares of the company’s stock on July 13th. The stock was sold at an average price of $168.18 per share, resulting in a total value of $3,124,448.04. After completing this transaction, Broad now holds 16,724 shares valued at approximately $2,812,642.32.
These insider selling activities indicate that senior executives of Darden Restaurants are capitalizing on the company’s success and taking advantage of favorable market conditions to realize profits from their investments.
Several research firms have also shared their opinions on Darden Restaurants’ stock performance. Barclays increased their price target from $173.00 to $177.00 in June 2023 while Royal Bank of Canada lowered theirs from $185.00 to $183.00 during the same time frame.
Piper Sandler initiated coverage on Darden Restaurants in July 2023 with a “neutral” rating and set a price objective of $167.00 for the company’s stock. StockNews.com upgraded its rating from “hold” to “buy” in August 2023. Additionally, Bank of America lifted their price target from $172.00 to $187.00 in June 2023.
Overall, six equities research analysts have rated the stock as a hold while fifteen have given it a buy rating. As per Bloomberg data, Darden Restaurants has a consensus rating of “Moderate Buy” and an average target price estimated at $168.22.
Highlighting its financial performance, Darden Restaurants reported earnings data for the quarter ending June 22nd in 2023. The company beat analysts’ consensus estimates by posting earnings per share (EPS) of $2.58 compared to expectations of $2.54 EPS.
Darden Restaurants recorded a net margin of 9.36% during this period and achieved a return on equity of 47.22%. The company generated $2.77 billion in revenue for the quarter, matching analyst estimates. This represents a 6.4% increase in revenue compared to the same period the previous year.
Analysts predict that Darden Restaurants will continue to perform well and are projecting EPS of 8.75 for the current year.
Furthermore, Darden Restaurants recently announced an increased quarterly dividend amount, which was paid out to shareholders on August 1st, 2023. Stockholders who held shares as of July 10th received a dividend totaling $1.31 per share. This marked an increase from their previous quarterly dividend of $1.21 per share and resulted in an annualized dividend of $5.24 per share, equating to a dividend yield of 3.49%.
In conclusion, Darden Restaurants has garnered significant attention from institutional investors and hedge funds due to its strong performance and growth prospects. While senior executives have sold some shares, their actions reflect confidence in the company’s future outlook.
Research firms have provided mixed opinions on Darden Restaurants’ stock performance with six analysts rating it as hold and fifteen rating it as a buy. The consensus target price is estimated at $168.22.
Darden Restaurants’ recent