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

Darden Restaurants (NYSE:DRI) had its price target cut by stock analysts at KeyCorp from $240.00 to $225.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage presently has an “overweight” rating on the restaurant operator’s stock. KeyCorp’s price target would indicate a potential upside of 21.73% from the company’s previous close.

Other research analysts have also issued research reports about the stock. Melius started coverage on shares of Darden Restaurants in a research note on Monday, July 14th. They issued a “hold” rating and a $240.00 target price on the stock. UBS Group raised their target price on shares of Darden Restaurants from $225.00 to $245.00 and gave the company a “buy” rating in a research note on Monday, June 16th. BTIG Research reduced their target price on shares of Darden Restaurants from $235.00 to $225.00 and set a “buy” rating on the stock in a research note on Friday. Robert W. Baird raised their target price on shares of Darden Restaurants from $218.00 to $230.00 and gave the company a “neutral” rating in a research note on Monday, June 23rd. Finally, Evercore ISI reduced their price objective on shares of Darden Restaurants from $250.00 to $245.00 and set an “outperform” rating on the stock in a research note on Wednesday, September 10th. Eighteen investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $225.96.

Darden Restaurants Stock Down 4.1%

Shares of NYSE DRI opened at $184.83 on Friday. The firm has a market capitalization of $21.55 billion, a PE ratio of 19.81, a price-to-earnings-growth ratio of 1.69 and a beta of 0.71. The company has a current ratio of 0.40, a quick ratio of 0.28 and a debt-to-equity ratio of 0.96. Darden Restaurants has a 1 year low of $155.18 and a 1 year high of $228.27. The firm’s 50-day moving average is $206.37 and its 200-day moving average is $206.14.

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

Darden Restaurants declared that its board has authorized a stock repurchase program on Friday, June 20th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the restaurant operator to reacquire up to 3.8% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity

In other Darden Restaurants news, SVP Matthew R. Broad sold 733 shares of the firm’s stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $218.50, for a total transaction of $160,160.50. Following the sale, the senior vice president directly owned 14,367 shares in the company, valued at approximately $3,139,189.50. This trade represents a 4.85% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, SVP Susan M. Connelly sold 4,735 shares of the firm’s stock in a transaction that occurred on Tuesday, June 24th. The stock was sold at an average price of $223.78, for a total transaction of $1,059,598.30. Following the sale, the senior vice president 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. In the last ninety days, insiders sold 45,727 shares of company stock worth $10,022,232. Corporate insiders own 0.49% of the company’s stock.

Institutional Trading of Darden Restaurants

Several hedge funds have recently bought and sold shares of DRI. GAMMA Investing LLC raised its holdings in Darden Restaurants by 46,484.5% during the 1st quarter. GAMMA Investing LLC now owns 928,895 shares of the restaurant operator’s stock worth $192,987,000 after buying an additional 926,901 shares during the period. Marshall Wace LLP raised its holdings in Darden Restaurants by 820.4% during the 2nd quarter. Marshall Wace LLP now owns 706,416 shares of the restaurant operator’s stock worth $153,977,000 after buying an additional 629,669 shares during the period. Invesco Ltd. raised its holdings in Darden Restaurants by 45.2% during the 2nd quarter. Invesco Ltd. now owns 1,917,398 shares of the restaurant operator’s stock worth $417,935,000 after buying an additional 596,863 shares during the period. Arrowstreet Capital Limited Partnership raised its holdings in Darden Restaurants by 192.6% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 880,765 shares of the restaurant operator’s stock worth $191,980,000 after buying an additional 579,759 shares during the period. Finally, Norges Bank acquired a new stake in shares of Darden Restaurants in the second quarter valued at approximately $125,521,000. 93.64% of the stock is currently owned by institutional investors and hedge funds.

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.