Nomura Holdings Inc. Invests $838,000 in Darden Restaurants, Inc. (NYSE:DRI)

Nomura Holdings Inc. purchased a new stake in shares of Darden Restaurants, Inc. (NYSE:DRI) during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 5,100 shares of the restaurant operator’s stock, valued at approximately $838,000.

A number of other hedge funds also recently bought and sold shares of the business. Fortitude Family Office LLC purchased a new position in shares of Darden Restaurants during the fourth quarter valued at approximately $29,000. Hartford Financial Management Inc. increased its position in Darden Restaurants by 65.1% during 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 position in Darden Restaurants in the 4th quarter worth $33,000. McGlone Suttner Wealth Management Inc. purchased a new stake in shares of Darden Restaurants in the 4th quarter worth about $35,000. Finally, Union Savings Bank boosted its stake in shares of Darden Restaurants by 44.0% during the 4th quarter. Union Savings Bank now owns 216 shares of the restaurant operator’s stock valued at $35,000 after purchasing an additional 66 shares in the last quarter. Hedge funds and other institutional investors own 93.64% of the company’s stock.

Darden Restaurants Trading Up 1.5 %

Shares of NYSE:DRI opened at $154.29 on Friday. Darden Restaurants, Inc. has a 52-week low of $133.36 and a 52-week high of $176.84. The stock has a market capitalization of $18.42 billion, a price-to-earnings ratio of 18.09, a PEG ratio of 1.60 and a beta of 1.29. 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 stock’s 50-day simple moving average is $150.70 and its two-hundred day simple moving average is $159.73.

Darden Restaurants (NYSE:DRI) last announced its earnings results on Thursday, March 21st. The restaurant operator reported $2.62 earnings per share (EPS) for the quarter, missing the consensus estimate 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 for the quarter, compared to the consensus estimate of $3.02 billion. During the same quarter last year, the firm posted $2.34 earnings per share. The business’s quarterly revenue was up 6.8% compared to the same quarter last year. Analysts expect that Darden Restaurants, Inc. will post 8.85 EPS for the current year.

Darden Restaurants Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 15th. Stockholders of record on Thursday, July 11th will be paid a $1.29 dividend. This represents a $5.16 annualized dividend and a dividend yield of 3.34%. Darden Restaurants’s dividend payout ratio (DPR) is 61.43%.

Darden Restaurants announced that its Board of Directors has initiated a share buyback program on Thursday, March 21st that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the restaurant operator to buy up to 5% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

DRI has been the subject of several research analyst reports. Morgan Stanley lowered their price objective on shares of Darden Restaurants from $180.00 to $175.00 and set an “overweight” rating for the company in a report on Wednesday, June 12th. Stephens restated an “equal weight” rating and set a $165.00 price target on shares of Darden Restaurants in a research report on Thursday. Wedbush reaffirmed an “outperform” rating and issued a $170.00 price target on shares of Darden Restaurants in a research note on Thursday. BTIG Research raised Darden Restaurants from a “neutral” rating to a “buy” rating and set a $175.00 price objective for the company in a research report on Friday, May 17th. Finally, Raymond James reaffirmed an “outperform” rating and issued a $167.00 target price (down from $175.00) on shares of Darden Restaurants in a research report on Friday, June 14th. Five investment analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $173.81.

Insider Buying and Selling

In other Darden Restaurants news, SVP Matthew R. Broad sold 4,707 shares of the business’s stock in a transaction dated 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 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 accessible through the SEC website. In other Darden Restaurants news, insider Melvin John Martin sold 7,673 shares of Darden Restaurants stock in a transaction that occurred on Wednesday, March 27th. The shares were sold at an average price of $165.52, for a total transaction of $1,270,034.96. Following the transaction, the insider now owns 17,208 shares of the company’s stock, valued at $2,848,268.16. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, 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 disclosure for this sale can be found here. In the last three months, insiders have sold 13,599 shares of company stock valued at $2,197,891. 0.85% of the stock is owned by company 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.