KeyCorp Raises Darden Restaurants (NYSE:DRI) Price Target to $245.00

Darden Restaurants (NYSE:DRI) had its price target increased by KeyCorp from $230.00 to $245.00 in a research note issued to investors on Monday morning,Benzinga reports. They currently have an overweight rating on the restaurant operator’s stock.

Several other research firms have also recently commented on DRI. Guggenheim boosted their price target on shares of Darden Restaurants from $205.00 to $220.00 and gave the company a “buy” rating in a report on Monday, March 24th. Jefferies Financial Group upgraded shares of Darden Restaurants from an “underperform” rating to a “hold” rating and boosted their price target for the company from $165.00 to $210.00 in a report on Friday, June 13th. Citigroup boosted their price target on shares of Darden Restaurants from $223.00 to $229.00 and gave the company a “buy” rating in a report on Friday, March 21st. Bank of America boosted their price target on shares of Darden Restaurants from $230.00 to $238.00 and gave the company a “buy” rating in a report on Friday, March 21st. Finally, Truist Financial boosted their price target on shares of Darden Restaurants from $230.00 to $252.00 and gave the company a “buy” rating in a report on Wednesday, June 18th. Nine investment analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $224.60.

Darden Restaurants Price Performance

Shares of NYSE:DRI opened at $217.45 on Monday. The company’s fifty day moving average is $209.59 and its two-hundred day moving average is $196.98. The company has a quick ratio of 0.28, a current ratio of 0.42 and a debt-to-equity ratio of 0.92. Darden Restaurants has a 12-month low of $135.87 and a 12-month high of $228.27. The company has a market cap of $25.45 billion, a P/E ratio of 24.49, a price-to-earnings-growth ratio of 2.13 and a beta of 0.75.

Darden Restaurants (NYSE:DRI) last announced its earnings results on Friday, June 20th. The restaurant operator reported $2.98 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.97 by $0.01. Darden Restaurants had a net margin of 8.69% and a return on equity of 51.81%. The company had revenue of $3.27 billion for the quarter, compared to the consensus estimate of $3.25 billion. During the same period in the previous year, the business earned $2.65 EPS. The company’s revenue was up 10.6% on a year-over-year basis. Equities analysts expect that Darden Restaurants will post 9.52 earnings per share for the current fiscal year.

Darden Restaurants announced that its board has initiated a share buyback plan on Friday, June 20th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the restaurant operator to purchase up to 3.8% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Darden Restaurants Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 1st. Shareholders of record on Thursday, July 10th will be issued a dividend of $1.50 per share. This represents a $6.00 dividend on an annualized basis and a yield of 2.76%. This is a boost from Darden Restaurants’s previous quarterly dividend of $1.40. The ex-dividend date is Thursday, July 10th. Darden Restaurants’s dividend payout ratio is 63.06%.

Institutional Investors Weigh In On Darden Restaurants

A number of hedge funds have recently bought and sold shares of DRI. Atria Wealth Solutions Inc. boosted its holdings in Darden Restaurants by 14.2% during the fourth quarter. Atria Wealth Solutions Inc. now owns 3,659 shares of the restaurant operator’s stock valued at $683,000 after acquiring an additional 455 shares during the period. Private Advisor Group LLC raised its position in shares of Darden Restaurants by 17.6% during the fourth quarter. Private Advisor Group LLC now owns 8,111 shares of the restaurant operator’s stock valued at $1,514,000 after buying an additional 1,215 shares during the last quarter. Concurrent Investment Advisors LLC lifted its stake in shares of Darden Restaurants by 49.3% in the fourth quarter. Concurrent Investment Advisors LLC now owns 3,848 shares of the restaurant operator’s stock valued at $718,000 after buying an additional 1,270 shares during the period. First Horizon Advisors Inc. lifted its stake in shares of Darden Restaurants by 2.5% in the fourth quarter. First Horizon Advisors Inc. now owns 2,418 shares of the restaurant operator’s stock valued at $451,000 after buying an additional 59 shares during the period. Finally, Forvis Mazars Wealth Advisors LLC lifted its stake in shares of Darden Restaurants by 5.9% in the fourth quarter. Forvis Mazars Wealth Advisors LLC now owns 18,540 shares of the restaurant operator’s stock valued at $3,461,000 after buying an additional 1,028 shares during the period. 93.64% of the stock is currently owned by institutional investors.

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.