Darden Restaurants, Inc. (NYSE:DRI) Short Interest Up 8.3% in March

Darden Restaurants, Inc. (NYSE:DRI) saw a significant increase in short interest in 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. Approximately 5.0% of the shares of the company are short sold. Based on an average daily trading volume, of 1,150,000 shares, the days-to-cover ratio is currently 5.1 days.

Darden Restaurants Trading Down 0.7 %

NYSE:DRI traded down $1.07 during trading hours on Wednesday, reaching $153.07. The company’s stock had a trading volume of 768,954 shares, compared to its average volume of 1,150,503. Darden Restaurants has a 1 year low of $133.36 and a 1 year high of $176.84. 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 firm has a 50-day simple moving average of $166.11 and a 200-day simple moving average of $158.66. The firm has a market capitalization of $18.27 billion, a price-to-earnings ratio of 18.07, a PEG ratio of 1.69 and a beta of 1.25.

Darden Restaurants (NYSE:DRI) last issued 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). The firm had revenue of $2.97 billion during the quarter, compared to the consensus estimate of $3.02 billion. Darden Restaurants had a return on equity of 49.94% and a net margin of 9.24%. The firm’s revenue for the quarter was up 6.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.34 EPS. Research analysts expect that Darden Restaurants will post 8.85 EPS for the current fiscal year.

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

Darden Restaurants Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 1st. Shareholders of record on Wednesday, April 10th will be issued a $1.31 dividend. This represents a $5.24 annualized dividend and a yield of 3.42%. The ex-dividend date is Tuesday, April 9th. Darden Restaurants’s dividend payout ratio (DPR) is currently 61.43%.

Analyst Ratings Changes

Several research analysts have commented on DRI shares. TD Cowen restated a “buy” rating and issued a $190.00 target price on shares of Darden Restaurants in a research note on Wednesday, April 10th. Morgan Stanley reduced their price objective on shares of Darden Restaurants from $184.00 to $180.00 and set an “overweight” rating for the company in a research note on Friday, March 22nd. Citigroup reduced their price target on shares of Darden Restaurants from $200.00 to $192.00 and set a “buy” rating for the company in a research report on Friday, March 22nd. BMO Capital Markets boosted their target price on Darden Restaurants from $160.00 to $165.00 and gave the stock a “market perform” rating in a research report on Thursday, March 7th. Finally, Stifel Nicolaus raised their price target on Darden Restaurants from $185.00 to $190.00 and gave the company a “buy” rating in a report on Tuesday, March 19th. Five research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the stock. According to data from MarketBeat, Darden Restaurants presently has a consensus rating of “Moderate Buy” and an average target price of $178.85.

Insider Activity at Darden Restaurants

In other Darden Restaurants news, Director William S. Simon sold 1,219 shares of the firm’s stock in a transaction on Monday, April 8th. The stock was sold at an average price of $158.21, for a total value of $192,857.99. Following the completion of the sale, the director now directly owns 6,281 shares of the company’s stock, valued at $993,717.01. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In other Darden Restaurants news, insider Melvin John Martin sold 7,673 shares of the business’s stock in a transaction 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 sale, the insider now owns 17,208 shares of the company’s stock, valued at approximately $2,848,268.16. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director William S. Simon sold 1,219 shares of the firm’s stock in a transaction on Monday, April 8th. The stock was 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 of the company’s stock, valued at $993,717.01. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 15,723 shares of company stock worth $2,578,122. 0.85% of the stock is owned by company insiders.

Institutional Trading of Darden Restaurants

A number of hedge funds have recently modified their holdings of the business. Alps Advisors Inc. grew its position in shares of Darden Restaurants by 3.0% during the 3rd quarter. Alps Advisors Inc. now owns 2,274 shares of the restaurant operator’s stock valued at $326,000 after acquiring an additional 66 shares during the period. Union Savings Bank raised its holdings in Darden Restaurants by 44.0% during the fourth quarter. Union Savings Bank now owns 216 shares of the restaurant operator’s stock valued at $35,000 after acquiring an additional 66 shares during the period. Wambolt & Associates LLC raised its holdings in Darden Restaurants by 3.7% during the third quarter. Wambolt & Associates LLC now owns 1,871 shares of the restaurant operator’s stock valued at $266,000 after acquiring an additional 67 shares during the period. Stephens Inc. AR grew its position in shares of Darden Restaurants by 2.7% during the fourth quarter. Stephens Inc. AR now owns 2,527 shares of the restaurant operator’s stock worth $415,000 after purchasing an additional 67 shares in the last quarter. Finally, Whittier Trust Co. raised its stake in Darden Restaurants by 0.5% during the 3rd quarter. Whittier Trust Co. now owns 13,705 shares of the restaurant operator’s stock valued at $1,963,000 after purchasing an additional 71 shares during the period. Institutional investors own 93.64% of the company’s stock.

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.