HighPoint Advisor Group LLC Buys New Shares in Darden Restaurants, Inc. (NYSE:DRI)

HighPoint Advisor Group LLC bought a new stake in Darden Restaurants, Inc. (NYSE:DRI) in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 3,974 shares of the restaurant operator’s stock, valued at approximately $646,000.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Raymond James & Associates lifted its holdings in Darden Restaurants by 7.3% during the 4th quarter. Raymond James & Associates now owns 1,968,301 shares of the restaurant operator’s stock valued at $323,392,000 after purchasing an additional 134,098 shares during the last quarter. Wellington Management Group LLP lifted its holdings in Darden Restaurants by 10.3% during the 4th quarter. Wellington Management Group LLP now owns 1,809,155 shares of the restaurant operator’s stock valued at $297,244,000 after purchasing an additional 169,642 shares during the last quarter. Morgan Stanley lifted its holdings in Darden Restaurants by 13.8% during the 3rd quarter. Morgan Stanley now owns 1,669,789 shares of the restaurant operator’s stock valued at $239,148,000 after purchasing an additional 202,139 shares during the last quarter. Invesco Ltd. lifted its holdings in Darden Restaurants by 27.0% during the 3rd quarter. Invesco Ltd. now owns 1,602,543 shares of the restaurant operator’s stock valued at $229,516,000 after purchasing an additional 340,467 shares during the last quarter. Finally, Northern Trust Corp lifted its holdings in Darden Restaurants by 5.4% during the 3rd quarter. Northern Trust Corp now owns 1,467,716 shares of the restaurant operator’s stock valued at $210,206,000 after purchasing an additional 75,287 shares during the last quarter. 93.64% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, SVP Matthew R. Broad sold 4,707 shares of Darden Restaurants stock in a transaction that occurred on Thursday, April 25th. The stock was sold at an average price of $156.15, for a total value of $734,998.05. Following 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 legal filing with the SEC, which is available through this hyperlink. In other Darden Restaurants news, SVP Matthew R. Broad sold 4,707 shares of the business’s stock in a transaction that occurred on Thursday, April 25th. The stock was sold at an average price of $156.15, for a total value of $734,998.05. Following the transaction, 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 legal filing with the SEC, which is available through this link. Also, Director William S. Simon sold 1,219 shares of the business’s 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 transaction, the director now directly owns 6,281 shares in the company, valued at $993,717.01. The disclosure for this sale can be found here. Insiders have sold a total of 13,599 shares of company stock valued at $2,197,891 over the last ninety days. 0.85% of the stock is owned by company insiders.

Darden Restaurants Stock Performance

NYSE:DRI opened at $152.07 on Wednesday. The stock has a market cap of $18.15 billion, a P/E ratio of 17.83, a price-to-earnings-growth ratio of 1.57 and a beta of 1.29. The company has a current ratio of 0.39, a quick ratio of 0.25 and a debt-to-equity ratio of 0.63. The stock’s 50-day moving average is $150.91 and its 200-day moving average is $159.84. Darden Restaurants, Inc. has a 1-year low of $133.36 and a 1-year high of $176.84.

Darden Restaurants (NYSE:DRI) last posted its quarterly earnings data on Thursday, March 21st. The restaurant operator reported $2.62 EPS for the quarter, missing analysts’ consensus estimates of $2.63 by ($0.01). The company had revenue of $2.97 billion during the quarter, compared to analyst estimates of $3.02 billion. Darden Restaurants had a return on equity of 49.94% and a net margin of 9.24%. Darden Restaurants’s revenue was up 6.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.34 earnings per share. Equities research analysts anticipate that Darden Restaurants, Inc. will post 8.85 earnings per share for the current year.

Darden Restaurants declared that its Board of Directors has initiated a stock buyback plan on Thursday, March 21st that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the restaurant operator to repurchase up to 5% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Darden Restaurants Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, May 1st. Investors of record on Wednesday, April 10th were paid a $1.31 dividend. This represents a $5.24 dividend on an annualized basis and a dividend yield of 3.45%. The ex-dividend date was Tuesday, April 9th. Darden Restaurants’s dividend payout ratio is currently 61.43%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on DRI shares. BMO Capital Markets lifted their target price on Darden Restaurants from $160.00 to $165.00 and gave the stock a “market perform” rating in a report on Thursday, March 7th. Citigroup decreased their price target on Darden Restaurants from $192.00 to $191.00 and set a “buy” rating on the stock in a research report on Wednesday, June 5th. Truist Financial restated a “buy” rating and issued a $190.00 price target on shares of Darden Restaurants in a research report on Friday, March 22nd. BTIG Research upgraded Darden Restaurants from a “neutral” rating to a “buy” rating and set a $175.00 price target on the stock in a research report on Friday, May 17th. Finally, Morgan Stanley decreased their price target on Darden Restaurants from $180.00 to $175.00 and set an “overweight” rating on the stock in a research report on Wednesday, June 12th. Five research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $173.81.

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.