Evercore ISI Issues Pessimistic Forecast for Darden Restaurants (NYSE:DRI) Stock Price

Darden Restaurants (NYSE:DRI) had its target price lowered by stock analysts at Evercore ISI from $245.00 to $240.00 in a research report issued on Friday,Benzinga reports. The firm currently has an “outperform” rating on the restaurant operator’s stock. Evercore ISI’s target price suggests a potential upside of 29.85% from the stock’s current price.

DRI has been the subject of a number of other reports. Citigroup lifted their price objective on shares of Darden Restaurants from $245.00 to $253.00 and gave the stock a “buy” rating in a research note on Monday, June 23rd. Robert W. Baird lifted their price target on shares of Darden Restaurants from $218.00 to $230.00 and gave the stock a “neutral” rating in a research note on Monday, June 23rd. Guggenheim boosted their price objective on shares of Darden Restaurants from $220.00 to $235.00 and gave the company a “buy” rating in a research report on Wednesday. Argus reduced their price target on shares of Darden Restaurants from $260.00 to $220.00 and set a “buy” rating for the company in a report on Friday. Finally, UBS Group boosted their price target on shares of Darden Restaurants from $225.00 to $245.00 and gave the company a “buy” rating in a report on Monday, June 16th. Eighteen equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $225.96.

Darden Restaurants Stock Down 4.1%

Shares of DRI stock opened at $184.83 on Friday. The company has a market capitalization of $21.55 billion, a price-to-earnings ratio of 19.81, a PEG ratio of 1.69 and a beta of 0.71. The company’s fifty day moving average price is $206.37 and its 200-day moving average price is $206.14. Darden Restaurants has a one year low of $155.18 and a one year high of $228.27. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.40 and a quick ratio of 0.28.

Darden Restaurants (NYSE:DRI) last posted its earnings results on Thursday, September 18th. The restaurant operator reported $1.97 earnings per share for the quarter, missing the consensus estimate of $2.01 by ($0.04). The company had revenue of $3.04 billion for the quarter, compared to analysts’ expectations of $3.03 billion. Darden Restaurants had a net margin of 8.90% and a return on equity of 52.35%. The business’s revenue was up 10.4% on a year-over-year basis. During the same period in the previous year, the business posted $1.75 earnings per share. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. Sell-side analysts expect that Darden Restaurants will post 9.52 EPS for the current fiscal year.

Darden Restaurants announced that its board has approved a stock repurchase plan on Friday, June 20th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the restaurant operator to purchase up to 3.8% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other news, insider Todd Burrowes sold 13,569 shares of the company’s stock in a transaction on Monday, June 30th. The shares were sold at an average price of $216.45, for a total value of $2,937,010.05. Following the sale, the insider directly owned 46,327 shares of the company’s stock, valued at $10,027,479.15. This represents a 22.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Susan M. Connelly sold 4,735 shares of the company’s stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $223.78, for a total transaction of $1,059,598.30. Following the completion of the sale, the senior vice president directly owned 4,602 shares in the company, valued at $1,029,835.56. This trade represents a 50.71% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 45,727 shares of company stock worth $10,022,232. Company insiders own 0.49% of the company’s stock.

Hedge Funds Weigh In On Darden Restaurants

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DRI. Twin Peaks Wealth Advisors LLC purchased a new position in Darden Restaurants during the second quarter valued at $26,000. Grove Bank & Trust raised its position in shares of Darden Restaurants by 171.4% in the first quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator’s stock valued at $28,000 after buying an additional 84 shares during the last quarter. True Wealth Design LLC increased its position in Darden Restaurants by 419.2% during the second quarter. True Wealth Design LLC now owns 135 shares of the restaurant operator’s stock worth $29,000 after purchasing an additional 109 shares during the last quarter. Elevation Point Wealth Partners LLC acquired a new stake in Darden Restaurants during the second quarter worth about $29,000. Finally, ORG Partners LLC increased its position in 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. 93.64% of the stock is owned by hedge funds and other 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.