Darden Restaurants (NYSE:DRI) Raised to Outperform at Sanford C. Bernstein

Darden Restaurants (NYSE:DRI) was upgraded by research analysts at Sanford C. Bernstein from a “market perform” rating to an “outperform” rating in a note issued to investors on Wednesday, Marketbeat Ratings reports. The firm currently has a $215.00 price target on the restaurant operator’s stock, up from their prior price target of $180.00. Sanford C. Bernstein’s target price points to a potential upside of 15.45% from the stock’s previous close.

A number of other research firms have also weighed in on DRI. Citigroup cut their target price on shares of Darden Restaurants from $209.00 to $206.00 and set a “buy” rating on the stock in a research note on Wednesday, December 4th. UBS Group raised their price objective on shares of Darden Restaurants from $195.00 to $210.00 and gave the company a “buy” rating in a report on Friday, December 20th. Morgan Stanley boosted their target price on shares of Darden Restaurants from $193.00 to $209.00 and gave the stock an “overweight” rating in a research note on Monday, December 23rd. KeyCorp raised their price target on Darden Restaurants from $194.00 to $200.00 and gave the company an “overweight” rating in a research note on Friday, December 20th. Finally, Wedbush upped their price objective on Darden Restaurants from $200.00 to $220.00 and gave the stock an “outperform” rating in a research report on Friday, December 20th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and seventeen have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $190.52.

Darden Restaurants Stock Performance

Shares of DRI stock opened at $186.22 on Wednesday. The firm has a 50 day moving average of $177.03 and a two-hundred day moving average of $163.06. The stock has a market capitalization of $21.82 billion, a PE ratio of 21.33, a P/E/G ratio of 2.06 and a beta of 1.31. The company has a quick ratio of 0.23, a current ratio of 0.37 and a debt-to-equity ratio of 1.02. Darden Restaurants has a 52 week low of $135.87 and a 52 week high of $189.18.

Darden Restaurants (NYSE:DRI) last released its earnings results on Thursday, December 19th. The restaurant operator reported $2.03 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $2.03. Darden Restaurants had a return on equity of 50.12% and a net margin of 9.01%. The firm had revenue of $2.89 billion during the quarter, compared to analyst estimates of $2.87 billion. During the same period last year, the business posted $1.84 earnings per share. Darden Restaurants’s revenue was up 6.0% compared to the same quarter last year. On average, research analysts predict that Darden Restaurants will post 9.52 EPS for the current fiscal year.

Insider Buying and Selling at Darden Restaurants

In other news, CFO Rajesh Vennam sold 7,228 shares of the stock in a transaction that occurred on Monday, December 23rd. The stock was sold at an average price of $181.71, for a total transaction of $1,313,399.88. Following the completion of the transaction, the chief financial officer now directly owns 10,262 shares of the company’s stock, valued at approximately $1,864,708.02. This represents a 41.33 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, SVP Susan M. Connelly sold 9,264 shares of Darden Restaurants stock in a transaction that occurred on Monday, January 6th. The shares were sold at an average price of $184.68, for a total value of $1,710,875.52. Following the completion of the sale, the senior vice president now owns 4,567 shares in the company, valued at approximately $843,433.56. This trade represents a 66.98 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 45,034 shares of company stock valued at $8,303,692. 0.58% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Canada Pension Plan Investment Board increased its stake in Darden Restaurants by 27.9% in the 2nd quarter. Canada Pension Plan Investment Board now owns 28,655 shares of the restaurant operator’s stock valued at $4,336,000 after purchasing an additional 6,258 shares in the last quarter. Ensign Peak Advisors Inc raised its stake in shares of Darden Restaurants by 1.5% during the 2nd quarter. Ensign Peak Advisors Inc now owns 71,767 shares of the restaurant operator’s stock worth $10,860,000 after buying an additional 1,035 shares during the last quarter. ProShare Advisors LLC boosted its position in shares of Darden Restaurants by 10.0% in the 2nd quarter. ProShare Advisors LLC now owns 17,797 shares of the restaurant operator’s stock worth $2,693,000 after buying an additional 1,622 shares in the last quarter. 1832 Asset Management L.P. grew its stake in Darden Restaurants by 1.5% in the 2nd quarter. 1832 Asset Management L.P. now owns 11,767 shares of the restaurant operator’s stock valued at $1,781,000 after acquiring an additional 171 shares during the last quarter. Finally, Public Sector Pension Investment Board increased its holdings in Darden Restaurants by 63.4% during the 2nd quarter. Public Sector Pension Investment Board now owns 4,600 shares of the restaurant operator’s stock valued at $696,000 after acquiring an additional 1,784 shares in the last quarter. 93.64% of the stock is currently owned by institutional investors and hedge funds.

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.