Darden Restaurants, Inc. (NYSE:DRI) Short Interest Update

Darden Restaurants, Inc. (NYSE:DRI) was the target of a large increase in short interest in the month of August. As of August 15th, there was short interest totalling 6,530,000 shares, an increase of 13.2% from the July 31st total of 5,770,000 shares. Based on an average daily trading volume, of 1,300,000 shares, the days-to-cover ratio is currently 5.0 days. Approximately 5.5% of the shares of the stock are short sold.

Darden Restaurants Stock Up 0.9 %

Shares of Darden Restaurants stock traded up $1.40 on Monday, reaching $158.15. 1,103,400 shares of the company were exchanged, compared to its average volume of 1,223,299. The stock’s 50 day moving average price is $146.90 and its 200-day moving average price is $154.07. The company has a debt-to-equity ratio of 0.61, a current ratio of 0.38 and a quick ratio of 0.24. Darden Restaurants has a 1-year low of $133.36 and a 1-year high of $176.84. The company has a market cap of $19.12 billion, a P/E ratio of 18.56, a price-to-earnings-growth ratio of 1.77 and a beta of 1.29.

Darden Restaurants (NYSE:DRI) last posted its quarterly earnings results on Thursday, June 20th. The restaurant operator reported $2.65 EPS for the quarter, topping the consensus estimate of $2.61 by $0.04. The company had revenue of $3 billion during the quarter, compared to analysts’ expectations of $2.97 billion. Darden Restaurants had a net margin of 9.02% and a return on equity of 49.82%. The firm’s revenue was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.58 EPS. As a group, equities analysts forecast that Darden Restaurants will post 9.48 EPS for the current year.

Darden Restaurants Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 15th. Stockholders of record on Thursday, July 11th were given a dividend of $1.29 per share. The ex-dividend date of this dividend was Wednesday, July 10th. This represents a $5.16 annualized dividend and a dividend yield of 3.26%. Darden Restaurants’s dividend payout ratio is currently 65.73%.

Analyst Ratings Changes

DRI has been the topic of several analyst reports. TD Cowen lowered Darden Restaurants from a “buy” rating to a “hold” rating and reduced their price target for the stock from $170.00 to $150.00 in a report on Tuesday, July 23rd. Citigroup raised their target price on Darden Restaurants from $191.00 to $192.00 and gave the stock a “buy” rating in a research note on Friday, June 21st. Stephens reaffirmed an “equal weight” rating and issued a $165.00 price target on shares of Darden Restaurants in a research note on Friday, July 19th. Evercore ISI cut their price objective on Darden Restaurants from $170.00 to $165.00 and set an “in-line” rating for the company in a research report on Thursday, June 13th. Finally, Bank of America upped their target price on shares of Darden Restaurants from $180.00 to $185.00 and gave the company a “buy” rating in a research report on Friday, June 21st. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and sixteen have given a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $170.50.

Insider Transactions at Darden Restaurants

In other Darden Restaurants news, insider Melvin John Martin sold 2,500 shares of the stock in a transaction on Thursday, July 25th. The shares were sold at an average price of $141.09, for a total transaction of $352,725.00. Following the transaction, the insider now directly owns 11,691 shares of the company’s stock, valued at $1,649,483.19. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In other Darden Restaurants news, insider Melvin John Martin sold 2,500 shares of the stock in a transaction that occurred on Thursday, July 25th. The stock was sold at an average price of $141.09, for a total transaction of $352,725.00. Following the completion of the transaction, the insider now owns 11,691 shares of the company’s stock, valued at $1,649,483.19. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Sarah H. King sold 15,941 shares of Darden Restaurants stock in a transaction that occurred on Tuesday, July 30th. The stock was sold at an average price of $147.06, for a total value of $2,344,283.46. Following the completion of the sale, the senior vice president now directly owns 447 shares in the company, valued at $65,735.82. The disclosure for this sale can be found here. Corporate insiders own 0.85% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Farmers National Bank boosted its holdings in Darden Restaurants by 8.3% in the second quarter. Farmers National Bank now owns 3,515 shares of the restaurant operator’s stock valued at $532,000 after purchasing an additional 270 shares in the last quarter. Aurora Investment Counsel acquired a new position in shares of Darden Restaurants in the 2nd quarter valued at $1,856,000. Truist Financial Corp grew its position in shares of Darden Restaurants by 0.6% in the 2nd quarter. Truist Financial Corp now owns 71,780 shares of the restaurant operator’s stock valued at $10,862,000 after buying an additional 399 shares during the last quarter. EP Wealth Advisors LLC grew its position in shares of Darden Restaurants by 5.6% in the 2nd quarter. EP Wealth Advisors LLC now owns 1,418 shares of the restaurant operator’s stock valued at $215,000 after buying an additional 75 shares during the last quarter. Finally, Kimelman & Baird LLC purchased a new stake in Darden Restaurants in the second quarter valued at $30,000. Hedge funds and other institutional investors own 93.64% of the company’s stock.

Darden Restaurants Company 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.