Here’s The Case for and Against Darden Restaurants, Inc. (DRI)

On Thursday, shares of Darden Restaurants, Inc. (NYSE:DRI) marked $118.95 per share versus a previous $120.96 closing price. With having a -1.66% loss, an insight into the fundamental values of Darden Restaurants, Inc., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. DRI showed a rise of 19.12% within its YTD performance, with highs and lows between $84.37 – $124.00 during the period of 52 weeks, compared to the simple moving average of 7.06% in the period of the last 200 days.

UBS equity researchers changed the status of Darden Restaurants, Inc. (NYSE: DRI) shares to a “Buy” rating in the report published on April 26th, 2019. Other analysts, including Wedbush , also published their reports on DRI shares. Wedbush repeated the rating from the previous report, marking DRI under “Neutral” rating, in the report published on February 1st, 2019. Additionally, DRI shares got another “Buy” rating from BofA/Merrill. On the other hand, Maxim Group Upgrade the “Buy” rating for DRI shares, as published in the report on December 19th, 2018. BTIG Research seems to be going bullish on the price of DRI shares, based on the price prediction for DRI. Another “Buy” rating came from Loop Capital.

Darden Restaurants, Inc. (DRI) Analysis

The present dividend yield for DRI owners is set at 0.03, marking the return investors will get regardless of the company’s performance in the upcoming period.However, in order for the company to be able to pay its dividends, just like it is the case with Darden Restaurants, Inc., the company needs to provide a healthy cash flow, currently at the value of 39.64. In addition, the growth of sales from quarter to quarter is recording 5.50%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Darden Restaurants, Inc. (DRI) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 30.10% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 0.30 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while DRI is currently recording an average of 1.25M in volumes. The volatility of the stock on monthly basis is set at 1.79%, while the weekly volatility levels are marked at 1.75%with -1.16% of loss in the last seven days. Additionally, long-term investors are predicting the target price of $127.86, indicating growth from the present price of $118.95, which can represent yet another valuable research and analysis points that can help you decide whether to invest in DRI or pass.

What to Look for When Analyzing Darden Restaurants, Inc. Shares?

Darden Restaurants, Inc. (DRI) is based in the USA and it represents one of the well-known company operating with Services sector. If you wish to compare DRI shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 21.85 for Darden Restaurants, Inc., while the value 18.38 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 5.45 is supported by the yearly ESP growth of 8.70%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 0.10%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 93.70% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in DRI Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in DRI in the recent period. That is how The Vanguard Group, Inc. now has an increase position in DRI by 5.89% in the first quarter, owning 14.28 million shares of DRI stocks, with the value of $1.68 billion after the purchase of an additional 794,175 shares during the last quarter. In the meanwhile, Capital Research & Management Co. also increased their stake in DRI shares changed 29.47% in the first quarter, which means that the company now owns 6.15 million shares of company, all valued at $723.24 million after the acquisition of additional 1,400,000 shares during the last quarter.

SSgA Funds Management, Inc. acquired a new position in Darden Restaurants, Inc. during the first quarter, with the value of $678.19 million, and AQR Capital Management LLC increased their stake in the company’s shares by 0.40% in the first quarter, now owning 16,592 shares valued at $494.28 million after the acquisition of the additional 4.2 million shares during the last quarter. In the end, T. Rowe Price Associates, Inc. increased their position by 1.88% during the first quarter, now owning 2.37 million DRI shares, now holding the value of $278.59 million in DRI with the purchase of the additional 6,953 shares during the period of the last quarter. At the present, 93.70% of DRI shares are in the ownership of institutional investors.

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