Short Interest in Darden Restaurants, Inc. (NYSE:DRI) Increases By 8.3%

Darden Restaurants, Inc. (NYSE:DRI) was the recipient of a large increase in short interest during the month of March. As of March 31st, there was short interest totalling 5,890,000 shares, an increase of 8.3% from the March 15th total of 5,440,000 shares. Based on an average trading volume of 1,150,000 shares, the days-to-cover ratio is presently 5.1 days. Currently, 5.0% of the company’s shares are sold short.

Darden Restaurants Stock Down 0.8 %

Darden Restaurants stock traded down $1.17 during mid-day trading on Wednesday, hitting $152.97. The company had a trading volume of 1,092,196 shares, compared to its average volume of 1,155,414. The stock has a market cap of $18.26 billion, a price-to-earnings ratio of 17.93, a PEG ratio of 1.69 and a beta of 1.25. Darden Restaurants has a 1 year low of $133.36 and a 1 year high of $176.84. The company has a quick ratio of 0.25, a current ratio of 0.39 and a debt-to-equity ratio of 0.63. The business has a fifty day moving average of $166.11 and a 200 day moving average of $158.66.

Darden Restaurants (NYSE:DRI) last announced its quarterly earnings results on Thursday, March 21st. The restaurant operator reported $2.62 EPS for the quarter, missing the consensus estimate of $2.63 by ($0.01). The company had revenue of $2.97 billion during the quarter, compared to analysts’ expectations of $3.02 billion. Darden Restaurants had a net margin of 9.24% and a return on equity of 49.94%. The business’s revenue for the quarter was up 6.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.34 earnings per share. On average, sell-side analysts expect that Darden Restaurants will post 8.85 earnings per share for the current fiscal year.

Darden Restaurants Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 1st. Stockholders of record on Wednesday, April 10th will be issued a $1.31 dividend. This represents a $5.24 annualized dividend and a dividend yield of 3.43%. The ex-dividend date is Tuesday, April 9th. Darden Restaurants’s payout ratio is currently 61.43%.

Darden Restaurants announced that its board has authorized a stock buyback plan on Thursday, March 21st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the restaurant operator to purchase up to 5% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on DRI. Guggenheim boosted their price target on shares of Darden Restaurants from $180.00 to $185.00 and gave the stock a “buy” rating in a research note on Tuesday, March 19th. Wedbush cut their price target on shares of Darden Restaurants from $187.00 to $181.00 and set an “outperform” rating on the stock in a research note on Friday, March 22nd. TD Cowen reiterated a “buy” rating and set a $190.00 price target on shares of Darden Restaurants in a research note on Wednesday, April 10th. Stifel Nicolaus boosted their price target on shares of Darden Restaurants from $185.00 to $190.00 and gave the stock a “buy” rating in a research note on Tuesday, March 19th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Darden Restaurants from $170.00 to $180.00 and gave the stock an “overweight” rating in a research note on Tuesday, March 19th. Five investment analysts have rated the stock with a hold rating and fifteen have given a buy rating to the stock. According to MarketBeat.com, Darden Restaurants presently has a consensus rating of “Moderate Buy” and an average target price of $178.85.

Insider Activity

In other Darden Restaurants news, SVP Matthew R. Broad sold 6,831 shares of the company’s stock in a transaction dated Wednesday, January 31st. The shares were sold at an average price of $163.26, for a total value of $1,115,229.06. Following the transaction, the senior vice president now owns 19,141 shares of the company’s stock, valued at $3,124,959.66. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. In other Darden Restaurants news, Director William S. Simon sold 1,219 shares of the company’s stock in a transaction dated Monday, April 8th. The shares were sold at an average price of $158.21, for a total value of $192,857.99. Following the transaction, the director now owns 6,281 shares of the company’s stock, valued at $993,717.01. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, SVP Matthew R. Broad sold 6,831 shares of the company’s stock in a transaction dated Wednesday, January 31st. The shares were sold at an average price of $163.26, for a total transaction of $1,115,229.06. Following the completion of the transaction, the senior vice president now directly owns 19,141 shares in the company, valued at approximately $3,124,959.66. The disclosure for this sale can be found here. In the last quarter, insiders have sold 15,723 shares of company stock valued at $2,578,122. 0.85% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Darden Restaurants

Large investors have recently modified their holdings of the company. Rise Advisors LLC boosted its holdings in shares of Darden Restaurants by 131.3% in the first quarter. Rise Advisors LLC now owns 155 shares of the restaurant operator’s stock valued at $26,000 after acquiring an additional 88 shares during the period. Quarry LP lifted its holdings in shares of Darden Restaurants by 980.0% during the second quarter. Quarry LP now owns 162 shares of the restaurant operator’s stock worth $27,000 after purchasing an additional 147 shares during the period. Fortitude Family Office LLC acquired a new stake in shares of Darden Restaurants during the fourth quarter worth $29,000. Resurgent Financial Advisors LLC acquired a new stake in shares of Darden Restaurants during the fourth quarter worth $29,000. Finally, Hartford Financial Management Inc. lifted its holdings in shares of Darden Restaurants by 65.1% during the fourth quarter. Hartford Financial Management Inc. now owns 180 shares of the restaurant operator’s stock worth $30,000 after purchasing an additional 71 shares during the period. 93.64% of the stock is owned by institutional investors and hedge funds.

About Darden Restaurants

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.