Truist Financial Lowers Darden Restaurants (NYSE:DRI) Price Target to $240.00

Darden Restaurants (NYSE:DRI) had its price target reduced by investment analysts at Truist Financial from $252.00 to $240.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has a “buy” rating on the restaurant operator’s stock. Truist Financial’s target price suggests a potential upside of 29.85% from the company’s previous close.

Other research analysts have also issued research reports about the stock. Wells Fargo & Company cut their price target on shares of Darden Restaurants from $225.00 to $200.00 and set an “equal weight” rating on the stock in a research note on Friday. JPMorgan Chase & Co. lifted their price objective on shares of Darden Restaurants from $218.00 to $240.00 and gave the company an “overweight” rating in a report on Wednesday, June 25th. Oppenheimer lifted their price objective on shares of Darden Restaurants from $230.00 to $250.00 and gave the company an “outperform” rating in a report on Wednesday, June 18th. Stephens reiterated an “equal weight” rating and issued a $215.00 price objective on shares of Darden Restaurants in a report on Thursday. Finally, Barclays lifted their price objective on shares of Darden Restaurants from $235.00 to $255.00 and gave the company an “overweight” rating in a report on Monday, June 23rd. Eighteen investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $225.96.

Darden Restaurants Stock Performance

Shares of DRI opened at $184.83 on Friday. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.28 and a current ratio of 0.40. Darden Restaurants has a twelve month low of $155.18 and a twelve month high of $228.27. The firm’s 50 day moving average price is $206.37 and its two-hundred day moving average price is $206.14. The firm has a market cap of $21.55 billion, a P/E ratio of 19.81, a PEG ratio of 1.69 and a beta of 0.71.

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

Darden Restaurants declared that its board has approved a stock buyback plan on Friday, June 20th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the restaurant operator to purchase up to 3.8% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In other news, insider Todd Burrowes sold 13,569 shares of the business’s stock in a transaction dated 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 completion of the sale, the insider owned 46,327 shares of the company’s stock, valued at approximately $10,027,479.15. The trade was a 22.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Laura B. Williamson sold 523 shares of the business’s stock in a transaction dated Wednesday, July 30th. The shares were sold at an average price of $204.65, for a total transaction of $107,031.95. Following the completion of the sale, the insider directly owned 5,423 shares of the company’s stock, valued at approximately $1,109,816.95. The trade was a 8.80% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 45,727 shares of company stock valued at $10,022,232 in the last 90 days. 0.49% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Darden Restaurants

Institutional investors have recently modified their holdings of the business. Twin Peaks Wealth Advisors LLC bought a new stake in shares of Darden Restaurants in the second quarter valued at about $26,000. Grove Bank & Trust lifted its position in Darden Restaurants by 171.4% during the first quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator’s stock worth $28,000 after purchasing an additional 84 shares during the period. True Wealth Design LLC lifted 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 period. Elevation Point Wealth Partners LLC bought a new stake in Darden Restaurants during the second quarter worth about $29,000. Finally, ORG Partners LLC lifted 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 period. 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.