Darden Restaurants Receives Price Target Increase from BMO Capital Markets

Darden Restaurants (NYSE:DRI) has seen an increase in its price target set by analysts at BMO Capital Markets, raised from $175.00 to $190.00. This update was included in a research report released to clients and investors on Friday. The investment firm currently rates Darden's stock as "market perform." The new price target indicates a possible downside of approximately 4.36% based on the stock's previous closing price.

Other Analyst Recommendations

Various other research analysts have also commented on Darden Restaurants' stock. For instance, Raymond James increased their price target from $200.00 to $210.00 and issued an "outperform" rating in their report on January 28. Similarly, Wedbush raised their target for Darden from $220.00 to $235.00 and also assigned an "outperform" rating. Furthermore, on January 22, Sanford C. Bernstein upgraded Darden from a "market perform" to an "outperform" rating, increasing their target price from $180.00 to $215.00.

Robert W. Baird raised their price target from $192.00 to $210.00 while maintaining a "neutral" rating in a recent report. UBS Group subsequently increased their price objective from $195.00 to $210.00, assigning a "buy" rating. Currently, the consensus rating for Darden Restaurants among analysts stands at "Moderate Buy," with an average price target of $197.44.

Darden Restaurants Trading Activity

On Friday, shares of Darden Restaurants opened at $198.66, showing a 5.6% increase. The stock has experienced fluctuations over the past year, with a low of $135.87 and a high of $203.47. Darden has a market capitalization of approximately $23.27 billion, with a price-to-earnings (P/E) ratio of 22.76 and a P/E growth (P/E/G) ratio of 2.15. The company's debt-to-equity ratio is 1.02, and its quick and current ratios are 0.23 and 0.37 respectively. Notably, the stock has a 50-day simple moving average of $191.67 and a 200-day average of $176.31.

Recent Financial Results

The latest quarterly earnings report for Darden Restaurants was announced on March 20, where the company reported earnings per share (EPS) of $2.80, meeting analysts' expectations. Darden's return on equity stood at 50.12%, with a net margin of 9.01%. The company's revenue for the quarter was reported at $3.16 billion, which fell short of the consensus estimate of $3.22 billion. Compared to the same period last year, Darden's revenue grew by 6.2%, and analysts are predicting an EPS of 9.52 for the current fiscal year.

Insider Transactions

In recent insider activity, CFO Rajesh Vennam sold 7,228 shares at an average price of $181.71 on December 23, totaling approximately $1.31 million. Post-transaction, Vennam retains about 10,262 shares. Additionally, insider Todd Burrowes sold 15,783 shares on January 14 at an average of $183.03, resulting in a transaction of roughly $2.89 million. Insiders collectively sold 52,926 shares of Darden stock worth about $9.85 million in the last three months, representing 0.58% of the total shareholding.

Hedge Fund Activity

Several hedge funds have recently modified their positions in Darden Restaurants. For example, Kestra Investment Management acquired a new stake valued at around $25,000 in the fourth quarter. Similarly, Compass Wealth Management purchased a stake worth approximately $28,000, and TCTC Holdings made a new purchase during the same quarter, also around $28,000. MCF Advisors increased its stake in Darden by 50.9%, owning 175 shares valued at $33,000 after recent acquisitions. As a whole, institutional investors hold about 93.64% of the company's stock.

About Darden Restaurants

Darden Restaurants, Inc. operates a variety of full-service restaurants across the United States and Canada, including popular brands such as Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, and more.

Darden, Restaurants, Stock