Darden Restaurants (NYSE:DRI) Downgraded by Jefferies Financial Group to “Underperform”

Jefferies Financial Group cut shares of Darden Restaurants (NYSE:DRI) from a hold rating to an underperform rating in a report published on Thursday morning, MarketBeat Ratings reports. The brokerage currently has $124.00 price objective on the restaurant operator’s stock, down from their prior price objective of $154.00.

Several other research firms also recently issued reports on DRI. Bank of America upped their price objective on shares of Darden Restaurants from $180.00 to $185.00 and gave the company a buy rating in a report on Friday, June 21st. Wedbush reaffirmed an outperform rating and issued a $170.00 price target on shares of Darden Restaurants in a report on Thursday, June 20th. Guggenheim boosted their price objective on shares of Darden Restaurants from $180.00 to $185.00 and gave the company a buy rating in a report on Tuesday, March 19th. Stephens restated an equal weight rating and issued a $165.00 target price on shares of Darden Restaurants in a research note on Thursday, June 20th. Finally, TD Cowen reiterated a buy rating and set a $170.00 price target on shares of Darden Restaurants in a research note on Thursday, June 20th. One analyst has rated the stock with a sell rating, five have issued a hold rating and seventeen have assigned a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of Moderate Buy and an average price target of $171.95.

Darden Restaurants Trading Up 1.3 %

NYSE DRI opened at $139.92 on Thursday. Darden Restaurants has a 52 week low of $133.36 and a 52 week high of $176.84. The company has a 50 day moving average price of $148.76 and a 200 day moving average price of $158.15. The company has a quick ratio of 0.24, a current ratio of 0.38 and a debt-to-equity ratio of 0.61. The firm has a market cap of $16.70 billion, a PE ratio of 16.42, a price-to-earnings-growth ratio of 1.66 and a beta of 1.29.

Darden Restaurants (NYSE:DRI) last issued its quarterly earnings results on Thursday, June 20th. The restaurant operator reported $2.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.61 by $0.04. The business had revenue of $3 billion for the quarter, compared to the consensus estimate of $2.97 billion. Darden Restaurants had a return on equity of 49.82% and a net margin of 9.02%. The business’s quarterly revenue was up 8.3% on a year-over-year basis. During the same period in the prior year, the firm posted $2.58 earnings per share. As a group, sell-side analysts forecast that Darden Restaurants will post 9.5 EPS for the current fiscal year.

Darden Restaurants Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 15th. Stockholders of record on Thursday, July 11th will be given a $1.29 dividend. The ex-dividend date of this dividend is Wednesday, July 10th. This represents a $5.16 annualized dividend and a dividend yield of 3.69%. Darden Restaurants’s dividend payout ratio (DPR) is 65.73%.

Darden Restaurants declared that its board has authorized a stock repurchase program on Thursday, March 21st that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the restaurant operator to reacquire up to 5% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

Insider Activity at Darden Restaurants

In other Darden Restaurants news, SVP Matthew R. Broad sold 4,707 shares of the business’s stock in a transaction that occurred on Thursday, April 25th. The stock was sold at an average price of $156.15, for a total transaction of $734,998.05. Following the completion of the sale, the senior vice president now directly owns 19,179 shares in the company, valued at approximately $2,994,800.85. The transaction was disclosed in a document filed with the SEC, which is available through this link. 0.85% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Darden Restaurants

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Westwood Holdings Group Inc. purchased a new position in shares of Darden Restaurants in the first quarter worth about $72,901,000. Norges Bank acquired a new position in shares of Darden Restaurants during the 4th quarter worth approximately $58,601,000. California Public Employees Retirement System grew its position in shares of Darden Restaurants by 129.6% in the fourth quarter. California Public Employees Retirement System now owns 553,721 shares of the restaurant operator’s stock valued at $90,976,000 after purchasing an additional 312,531 shares in the last quarter. AEGON ASSET MANAGEMENT UK Plc acquired a new stake in shares of Darden Restaurants in the fourth quarter valued at approximately $45,321,000. Finally, Raymond James & Associates lifted its position in Darden Restaurants by 11.9% during the first quarter. Raymond James & Associates now owns 2,202,711 shares of the restaurant operator’s stock worth $368,183,000 after buying an additional 234,410 shares in the last quarter. Institutional investors and hedge funds 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.