GAMMA Investing LLC Reduces Position in Darden Restaurants, Inc.

GAMMA Investing LLC has decreased its stake in Darden Restaurants, Inc. (NYSE:DRI) by 6.6% during the third quarter, according to reports from Holdings Channel.com. After selling 94 shares during this period, the fund now holds 1,321 shares of the popular restaurant company. The firm's investment in Darden is valued at approximately $217,000 at the conclusion of the latest reporting period.

In addition to GAMMA Investing, several other institutional investors have altered their positions in Darden Restaurants recently. Rise Advisors LLC increased its holdings by 131.3% in the first quarter, bringing their total to 155 shares worth around $26,000 after buying an additional 88 shares last quarter. ESL Trust Services LLC also entered the market by acquiring a new stake valued at approximately $27,000 in the first quarter. Meanwhile, Meeder Asset Management Inc. purchased a new position worth about $27,000 during the second quarter. Other significant additions included Kimelman & Baird LLC, which acquired shares valued at $30,000, and Innealta Capital LLC, which bought shares worth $31,000 in the same quarter. Currently, 93.64% of Darden's stock is owned by institutional investors.

Market Analysts Provide Insights

Several equity research analysts have shared their assessments regarding Darden's stock. On September 19th, TD Cowen reaffirmed a “hold” rating and established a target price of $150 for Darden's shares. The next day, Evercore ISI upgraded Darden from an “in-line” rating to an “outperform” rating, also raising their price target from $165 to $205. Bank of America increased its target from $184 to $195 while maintaining a “buy” rating, and Truist Financial raised their target from $185 to $195 as well, also assigning a “buy” rating. Finally, KeyCorp increased their price objective from $170 to $194 and labeled the stock as “overweight” in a research note issued on September 20th. One analyst issued a sell rating, while seven rated it as a hold, and seventeen analysts gave it a buy rating overall. As per data from MarketBeat.com, Darden Restaurants holds an average rating of “Moderate Buy” with a consensus price target of $179.25.

Darden Restaurants' Stock Information

The stock price of Darden Restaurants opened at $156.72 recently. The company boasts a market capitalization of $18.41 billion, with a price-to-earnings ratio of 18.08 and a P/E/G ratio of 1.83. The beta stands at 1.30. With a 50-day moving average of $156.78 and a 200-day moving average at $152.68, Darden's financial health reflects a quick ratio of 0.22, a current ratio of 0.35, and a debt-to-equity ratio of 0.65. Moreover, the company's stock has seen lows of $133.36 and highs of $176.84 in the past twelve months.

In the most recent quarterly earnings report released on September 19th, Darden Restaurants reported earnings per share (EPS) of $1.75, which fell short of the consensus estimate of $1.83 by $0.08. The company showed a return on equity of 49.46% and a net margin of 9.11%. Their quarterly revenue landed at $2.76 billion, which also did not meet the consensus estimate of $2.80 billion. Comparing year-over-year results, the company’s revenue displayed a modest 1.0% growth, with an EPS of $1.78 recorded for the same quarter last year. Analysts forecast that for the current fiscal year, Darden Restaurants is set to post an EPS of 9.47.

Darden Restaurants Declares Dividend Increase

Darden Restaurants has announced a quarterly dividend, which is scheduled for payment on Friday, November 1st. Investors who are on record as of Thursday, October 10th will receive a dividend of $1.40, equating to an annualized payout of $5.60 and a yield of 3.57%. This marks an increase from the prior dividend of $1.29. The ex-dividend date is also set for October 10th, while Darden’s dividend payout ratio (DPR) currently stands at 64.59%.

Insider Transactions

In insider trading news, Melvin John Martin, an insider of Darden, sold 3,000 shares on October 4th, at an average price of $163.30, totaling $489,900. Post-transaction, Martin holds 12,601 shares valued at roughly $2,057,743. This transaction reflected no change in the individual's ownership stake. Additionally, on September 23rd, CEO Ricardo Cardenas sold 42,403 shares at an average of $171.68, for a total of $7,279,747.04. Following this, Cardenas owns 58,685 shares valued at about $10,075,040. In the last ninety days, insiders sold a total of 77,706 shares worth roughly $12,813,038, with insiders currently holding 0.58% of the stock.

About Darden Restaurants

Darden Restaurants, Inc., along with its subsidiaries, owns and operates full-service dining establishments across the United States and Canada. The company operates a variety of well-known brands, including 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.

Darden, Investing, Shares