Sumitomo Mitsui Trust Holdings Inc. Cuts Stake in Darden Restaurants, Inc. (NYSE:DRI)

Sumitomo Mitsui Trust Holdings Inc. cut its stake in Darden Restaurants, Inc. (NYSE:DRI) by 5.9% during the 4th quarter, HoldingsChannel reports. The firm owned 292,469 shares of the restaurant operator’s stock after selling 18,329 shares during the quarter. Sumitomo Mitsui Trust Holdings Inc.’s holdings in Darden Restaurants were worth $48,053,000 as of its most recent SEC filing.

Other hedge funds also recently added to or reduced their stakes in the company. Tokio Marine Asset Management Co. Ltd. raised its position in Darden Restaurants by 7.2% in the third quarter. Tokio Marine Asset Management Co. Ltd. now owns 3,338 shares of the restaurant operator’s stock valued at $478,000 after purchasing an additional 224 shares during the period. Prime Capital Investment Advisors LLC raised its position in Darden Restaurants by 19.7% in the fourth quarter. Prime Capital Investment Advisors LLC now owns 2,789 shares of the restaurant operator’s stock valued at $458,000 after purchasing an additional 459 shares during the period. International Assets Investment Management LLC acquired a new stake in shares of Darden Restaurants during the fourth quarter valued at about $17,202,000. Invera Wealth Advisors LLC acquired a new stake in shares of Darden Restaurants during the fourth quarter valued at about $1,038,000. Finally, American Century Companies Inc. grew its stake in shares of Darden Restaurants by 21.1% during the third quarter. American Century Companies Inc. now owns 197,738 shares of the restaurant operator’s stock valued at $28,320,000 after acquiring an additional 34,478 shares in the last quarter. 93.64% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Stephens assumed coverage on Darden Restaurants in a research note on Friday, April 12th. They set an “equal weight” rating and a $170.00 target price for the company. StockNews.com downgraded Darden Restaurants from a “buy” rating to a “hold” rating in a research note on Thursday, January 4th. Bank of America raised their target price on Darden Restaurants from $193.00 to $198.00 and gave the company a “buy” rating in a research note on Monday, March 18th. Guggenheim raised their target price on Darden Restaurants from $180.00 to $185.00 and gave the company a “buy” rating in a research note on Tuesday, March 19th. Finally, BMO Capital Markets lifted their price target on Darden Restaurants from $160.00 to $165.00 and gave the stock a “market perform” rating in a research note on Thursday, March 7th. Five investment analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $178.85.

Darden Restaurants Stock Up 0.1 %

NYSE:DRI opened at $152.49 on Friday. The firm has a market capitalization of $18.20 billion, a PE ratio of 17.88, a price-to-earnings-growth ratio of 1.68 and a beta of 1.25. The stock has a 50 day moving average of $165.23 and a 200-day moving average of $158.65. Darden Restaurants, Inc. has a 52 week low of $133.36 and a 52 week high of $176.84. The company has a current ratio of 0.39, a quick ratio of 0.25 and a debt-to-equity ratio of 0.63.

Darden Restaurants (NYSE:DRI) last posted its earnings results on Thursday, March 21st. The restaurant operator reported $2.62 EPS for the quarter, missing the consensus estimate of $2.63 by ($0.01). The company had revenue of $2.97 billion for the quarter, compared to the consensus estimate of $3.02 billion. Darden Restaurants had a net margin of 9.24% and a return on equity of 49.94%. The firm’s revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period last year, the company posted $2.34 earnings per share. Analysts predict that Darden Restaurants, Inc. will post 8.85 EPS for the current year.

Darden Restaurants Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 1st. Stockholders of record on Wednesday, April 10th will be given a dividend of $1.31 per share. The ex-dividend date of this dividend is Tuesday, April 9th. This represents a $5.24 annualized dividend and a dividend yield of 3.44%. Darden Restaurants’s dividend payout ratio is presently 61.43%.

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

Insider Transactions at Darden Restaurants

In other news, Director William S. Simon sold 1,219 shares of the business’s stock in a transaction that occurred on Monday, April 8th. The stock was sold at an average price of $158.21, for a total transaction of $192,857.99. Following the completion of the transaction, the director now directly owns 6,281 shares in the company, valued at $993,717.01. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. In other news, Director William S. Simon sold 1,219 shares of the business’s stock in a transaction that occurred on Monday, April 8th. The stock was sold at an average price of $158.21, for a total transaction of $192,857.99. Following the completion of the transaction, the director now directly owns 6,281 shares in the company, valued at $993,717.01. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Matthew R. Broad sold 6,831 shares of the business’s stock in a transaction that occurred on Wednesday, January 31st. The stock was sold at an average price of $163.26, for a total value of $1,115,229.06. Following the transaction, the senior vice president now owns 19,141 shares of the company’s stock, valued at $3,124,959.66. The disclosure for this sale can be found here. Over the last three months, insiders sold 15,723 shares of company stock worth $2,578,122. Company insiders own 0.85% 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.