Wealthfront Advisers LLC has significantly reduced its stake in Darden Restaurants, Inc. (NYSE: DRI) by 23.6% during the third quarter of 2023. According to the firm’s latest 13F filing with the Securities and Exchange Commission (SEC), Wealthfront now holds 8,136 shares of the restaurant operator after selling 2,512 shares during this period. The value of these holdings stands at approximately $1,549,000 as of the filing date.
Several other institutional investors have also adjusted their positions in Darden Restaurants recently. For instance, Twin Peaks Wealth Advisors LLC acquired a new stake valued at about $26,000 in the second quarter, while Quent Capital LLC made a similar investment worth approximately $27,000 during the third quarter. Additionally, True Wealth Design LLC increased its stake by 419.2% during the second quarter, now owning 135 shares valued at around $29,000. Overall, institutional investors control 93.64% of Darden’s stock.
Current Stock Performance and Financial Metrics
As of the latest trading session, shares of Darden Restaurants opened at $211.42. The stock has shown a 50-day moving average price of $198.27 and a 200-day moving average of $194.11. Darden Restaurants boasts a market capitalization of $24.34 billion, a price-to-earnings ratio of 22.16, and a price-to-earnings-growth ratio of 2.03. Over the past year, the stock has experienced a low of $169.00 and a high of $228.27. Financial ratios include a quick ratio of 0.26, a current ratio of 0.39, and a debt-to-equity ratio of 1.03.
Darden recently declared a quarterly dividend of $1.50, which was paid on February 2, 2024, to stockholders of record as of January 9, 2024. This results in an annualized dividend of $6.00 and a dividend yield of 2.8%. The company’s payout ratio stands at 62.89%.
Insider Trading Activity
In related developments, Chief Financial Officer Rajesh Vennam sold 6,774 shares on January 15, 2024, at an average price of $214.12, totaling approximately $1,450,448.88. Following this transaction, Vennam holds 9,040 shares valued at about $1,935,644.80, reflecting a 42.84% decrease in his position. Insider John W. Wilkerson also sold 2,258 shares on January 16, 2024, for a total of $480,954.00, reducing his holdings by 11.27%. In total, insiders have sold 18,770 shares worth approximately $3,948,970 over the past ninety days, with 0.49% of the stock owned by corporate insiders.
Wall Street analysts have provided varied perspectives on Darden’s stock. TD Cowen reaffirmed a “hold” rating, while Weiss Ratings upgraded the company from “hold (c+)” to “buy (b-)”. UBS Group maintained a “buy” rating, and Guggenheim adjusted their price target from $235.00 to $230.00. Currently, twenty analysts rate the stock as a “Buy,” while nine have issued “Hold” ratings. The consensus rating is “Moderate Buy,” with an average target price of $224.78.
Darden Restaurants, headquartered in Orlando, Florida, operates a diverse portfolio of dining brands, including Olive Garden and LongHorn Steakhouse. The company provides a range of services, including dine-in, takeout, delivery, and catering, catering to millions of guests through both company-owned and franchised locations.
