Fruth Investment Management Has $3.36 Million Stock Holdings in Darden Restaurants, Inc. $DRI

Fruth Investment Management trimmed its stake in shares of Darden Restaurants, Inc. (NYSE:DRI) by 2.0% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 16,150 shares of the restaurant operator’s stock after selling 325 shares during the quarter. Darden Restaurants makes up about 0.9% of Fruth Investment Management’s portfolio, making the stock its 29th largest holding. Fruth Investment Management’s holdings in Darden Restaurants were worth $3,355,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Grove Bank & Trust grew its holdings in shares of Darden Restaurants by 171.4% during the first quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator’s stock worth $28,000 after purchasing an additional 84 shares during the last quarter. ORG Partners LLC grew its holdings in shares of Darden Restaurants by 108.8% during the first quarter. ORG Partners LLC now owns 142 shares of the restaurant operator’s stock worth $30,000 after purchasing an additional 74 shares during the last quarter. Centennial Bank AR bought a new stake in shares of Darden Restaurants during the first quarter worth about $31,000. Alpine Bank Wealth Management bought a new stake in shares of Darden Restaurants during the first quarter worth about $34,000. Finally, SouthState Corp bought a new stake in shares of Darden Restaurants during the first quarter worth about $36,000. 93.64% of the stock is currently owned by institutional investors.

Darden Restaurants Price Performance

Darden Restaurants stock opened at $213.42 on Friday. The stock has a market capitalization of $24.88 billion, a price-to-earnings ratio of 24.03, a PEG ratio of 1.94 and a beta of 0.71. Darden Restaurants, Inc. has a 52-week low of $155.18 and a 52-week high of $228.27. The stock’s 50 day moving average price is $207.78 and its two-hundred day moving average price is $205.75. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.28 and a current ratio of 0.42.

Darden Restaurants (NYSE:DRI) last issued its earnings results on Friday, June 20th. The restaurant operator reported $2.98 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.97 by $0.01. Darden Restaurants had a return on equity of 51.81% and a net margin of 8.69%.The company had revenue of $3.27 billion for the quarter, compared to analysts’ expectations of $3.25 billion. During the same period last year, the business earned $2.65 EPS. Darden Restaurants’s quarterly revenue was up 10.6% compared to the same quarter last year. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. On average, equities analysts predict that Darden Restaurants, Inc. will post 9.52 earnings per share for the current year.

Darden Restaurants declared that its Board of Directors has authorized a stock repurchase plan on Friday, June 20th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the restaurant operator to repurchase up to 3.8% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Darden Restaurants Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 1st. Shareholders of record on Thursday, July 10th were issued a dividend of $1.50 per share. The ex-dividend date was Thursday, July 10th. This is a positive change from Darden Restaurants’s previous quarterly dividend of $1.40. This represents a $6.00 annualized dividend and a yield of 2.8%. Darden Restaurants’s dividend payout ratio is currently 67.57%.

Insider Activity

In other Darden Restaurants news, SVP Douglas J. Milanes sold 11,948 shares of the company’s stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $222.08, for a total transaction of $2,653,411.84. Following the transaction, the senior vice president owned 147 shares in the company, valued at approximately $32,645.76. This represents a 98.78% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO Rajesh Vennam sold 5,780 shares of the firm’s stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $222.22, for a total value of $1,284,431.60. Following the transaction, the chief financial officer owned 4,555 shares in the company, valued at approximately $1,012,212.10. This trade represents a 55.93% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 45,727 shares of company stock valued at $10,022,232. 0.49% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on DRI shares. Stephens boosted their price target on Darden Restaurants from $200.00 to $212.00 and gave the stock an “equal weight” rating in a report on Monday, June 23rd. Robert W. Baird upped their price objective on shares of Darden Restaurants from $218.00 to $230.00 and gave the company a “neutral” rating in a research note on Monday, June 23rd. Bank of America upped their price objective on shares of Darden Restaurants from $252.00 to $253.00 and gave the company a “buy” rating in a research note on Monday, June 23rd. Truist Financial reaffirmed a “buy” rating and issued a $252.00 price objective on shares of Darden Restaurants in a research note on Tuesday, September 2nd. Finally, Citigroup upped their price objective on shares of Darden Restaurants from $245.00 to $253.00 and gave the company a “buy” rating in a research note on Monday, June 23rd. Sixteen research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $224.81.

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.