Morgan Stanley Forecasts Strong Price Appreciation for Darden Restaurants (NYSE:DRI) Stock

Darden Restaurants (NYSE:DRI - Free Report) had its price objective raised by Morgan Stanley from $193.00 to $209.00 in a research report sent to investors on Monday,Benzinga reports. They currently have an overweight rating on the restaurant operator's stock.

Other equities analysts also recently issued reports about the stock. Robert W. Baird upped their price target on shares of Darden Restaurants from $180.00 to $194.00 and gave the company a "neutral" rating in a research note on Friday. Citigroup decreased their target price on shares of Darden Restaurants from $209.00 to $206.00 and set a "buy" rating on the stock in a research report on Wednesday, December 4th. Bank of America raised their target price on shares of Darden Restaurants from $195.00 to $211.00 and gave the stock a "buy" rating in a report on Friday. JPMorgan Chase & Co. increased their price target on Darden Restaurants from $165.00 to $176.00 and gave the stock an "overweight" rating in a research report on Friday, September 20th. Finally, Sanford C. Bernstein lowered Darden Restaurants from an "outperform" rating to a "market perform" rating and lowered their price objective for the stock from $190.00 to $180.00 in a research note on Friday, September 20th. One research analyst has rated the stock with a sell rating, nine have issued a hold rating and sixteen have given a buy rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $187.44.

Darden Restaurants Stock Performance

DRI stock traded down $2.80 during mid-day trading on Monday, hitting $184.79. 2,048,979 shares of the company were exchanged, compared to its average volume of 1,257,994. Darden Restaurants has a 1-year low of $135.87 and a 1-year high of $188.88. The stock has a market capitalization of $21.71 billion, a PE ratio of 21.31, a price-to-earnings-growth ratio of 1.90 and a beta of 1.31. The business has a 50 day simple moving average of $166.87 and a 200-day simple moving average of $157.34. The company has a current ratio of 0.35, a quick ratio of 0.22 and a debt-to-equity ratio of 0.65.

Darden Restaurants (NYSE:DRI - Get Free Report) last released its quarterly earnings results on Thursday, December 19th. The restaurant operator reported $2.03 earnings per share for the quarter, hitting the consensus estimate of $2.03. Darden Restaurants had a return on equity of 49.46% and a net margin of 9.11%. The business had revenue of $2.89 billion during the quarter, compared to analysts' expectations of $2.87 billion. During the same period last year, the firm posted $1.84 EPS. The firm's revenue for the quarter was up 6.0% compared to the same quarter last year. On average, equities analysts forecast that Darden Restaurants will post 9.47 earnings per share for the current year.

Darden Restaurants Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, February 3rd. Stockholders of record on Friday, January 10th will be issued a dividend of $1.40 per share. This represents a $5.60 annualized dividend and a dividend yield of 3.03%. The ex-dividend date of this dividend is Friday, January 10th. Darden Restaurants's dividend payout ratio (DPR) is currently 64.15%.

Insider Activity

In related news, insider Melvin John Martin sold 3,000 shares of the business's stock in a transaction on Friday, October 4th. The shares were sold at an average price of $163.30, for a total value of $489,900.00. Following the sale, the insider now owns 12,601 shares of the company's stock, valued at $2,057,743.30. The trade was a 19.23 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Susan M. Connelly sold 3,320 shares of the firm's stock in a transaction on Tuesday, October 1st. The stock was sold at an average price of $163.43, for a total value of $542,587.60. Following the transaction, the senior vice president now directly owns 6,155 shares of the company's stock, valued at approximately $1,005,911.65. This represents a 35.04 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 8,320 shares of company stock valued at $1,366,948 over the last quarter. 0.58% of the stock is owned by company insiders.

Institutional Investors Weigh In On Darden Restaurants

A number of institutional investors have recently made changes to their positions in DRI. Mizuho Securities USA LLC boosted its stake in shares of Darden Restaurants by 96,162.9% in the 3rd quarter. Mizuho Securities USA LLC now owns 8,861,000 shares of the restaurant operator's stock valued at $1,454,356,000 after purchasing an additional 8,851,795 shares during the last quarter. Massachusetts Financial Services Co. MA lifted its holdings in Darden Restaurants by 111.0% in the third quarter. Massachusetts Financial Services Co. MA now owns 1,469,083 shares of the restaurant operator's stock valued at $241,121,000 after buying an additional 772,907 shares during the period. International Assets Investment Management LLC boosted its position in Darden Restaurants by 16,996.9% during the third quarter. International Assets Investment Management LLC now owns 377,500 shares of the restaurant operator's stock valued at $61,959,000 after acquiring an additional 375,292 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in Darden Restaurants during the 3rd quarter worth about $40,048,000. Finally, Toronto Dominion Bank raised its position in shares of Darden Restaurants by 139.9% in the 2nd quarter. Toronto Dominion Bank now owns 352,344 shares of the restaurant operator's stock worth $53,317,000 after acquiring an additional 205,450 shares in the last quarter. Institutional investors own 93.64% of the company's stock.

About Darden Restaurants

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.