At the last check on Thursday, Darden Restaurants Inc.’s (NYSE:DRI) stock was down -$1.2, moving down -0.80 percent to $148.26. The average number of shares traded per day over the past five days has been 1,305,190 shares. 2 times new highs have been achieved over the past 5 days, with a -$3.59 fall in that time frame. In the last twenty days, the average volume was 1,058,868, while in the previous 50 days, it was 1,097,627.
Since last month, DRI stock retreated -4.97%. Shares of the company fell to $147.25 on 09/12/23, the lowest level in the past month. A 52-week high of $173.06 was reached on 07/21/23 after having rallying from a 52-week low of $120.20. Since the beginning of this year, DRI’s stock price has risen by 7.18% or $9.90, and marked a new high 29 times. However, the stock has declined by -14.33% since its 52-week high.
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DRI stock investors should be aware that Darden Restaurants Inc. (DRI) stock had its last reported insider trading activity 51 days ago on Aug 01. LEE EUGENE I JR, the Chairman of the Board of the company, disposed of 74,741 shares for $166.90 on Aug 01. It resulted in a $12,474,045 divestment by the insider. Vennam Rajesh sold 5,314 shares at an average price of $169.08 on Jul 31. The insider now owns 5,958 shares following the transaction. On Jul 24, Chairman of the Board LEE EUGENE I JR sold 35,446 shares at $169.85 apiece. The transaction was valued at $6,020,361.
Valuation Metrics
Right now, Darden Restaurants Inc. (DRI) has a P/E ratio of about 18.50. The stock’s beta is 1.23. Besides these, the trailing price-to-sales (P/S) ratio of 1.73, the price-to-book (PB) ratio of 8.15, and the price-to-cash flow ratio of 19.06 may also be considered.
The latest dividend of $1.31 per share was paid out, remained unchanged from last year’s $1.31. On Thursday June 22 2023, a $0.10 dividend increase was announced.
Financial Health
In the three months ended May 30, Darden Restaurants Inc.’s quick ratio stood at 0.40, while its current ratio was 0.50, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending May 30 was 0.93, and the total debt-to-equity ratio was 0.94. On the profitability front, the trailing twelve-month gross margin is 19.90% percent. In the year ended May 30, EBITDA margin amounted to 14.92%, whereas operating margins totaled 11.50%. Based on annual data, DRI earned $2.08 billion in gross profit and brought in $10.49 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 24.90%. Return on equity (ROE) for the past 12 months was 47.10%.
In Darden Restaurants Inc.’s quarter-end financial report for May 30, it reported total debt of $884.9 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. DRI’s revenue rose 6.0% to $2.79 billion during the quarter, while net income inched up to $2.77 billion. While analysts expected Darden Restaurants Inc. to report $2.54 quarterly earnings, the actual figure was $2.58 per share, beating the consensus estimate by 1.60%. During the quarter, the company generated $471.6 million in EBITDA. The liabilities of Darden Restaurants Inc. were 8.04 billion at the end of its most recent quarter ended May 30, and its total debt was $5.97 billion. The value of shareholders’ equity is $121.07 million.
Technical Picture
This quick technical analysis looks at Darden Restaurants Inc.’s (DRI) price momentum. With a historical volatility rate of 15.88%, the RSI 9-day stood at 34.45% on 20 September.
With respect to its five-day moving average, the current Darden Restaurants Inc. price is down by -2.36% percent or -$3.59. At present, DRI shares trade -5.16% below its 20-day simple moving average and -2.44% percent below its 100-day simple moving average. However, the stock is currently trading approximately -11.17% below its SMA50 and +1.89% above its SMA200.
Stochastic coefficient K was 18.48% and Stochastic coefficient D was 20.95%, while ATR was 2.40. Given the Stochastic reading of 9.89% for the 14-day period, the RSI (14) reading has been calculated as 34.42%. As of today, the MACD Oscillator reading stands at -0.31, while the 14-day reading stands at -0.83.
Analyst Ratings
Piper Sandler launched its rating on Darden Restaurants Inc. (NYSE: DRI) to a Neutral in a note to investors on July 18, 2023. Darden Restaurants Inc. (DRI) has been rated Overweight by analysts. According to 0 brokerage firms, DRI is a sell, and 10 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 3 analysts rate Darden Restaurants Inc. stock as buy, with 16 recommending it as overweight.
With a median target price of $175.00, the current consensus forecast for the stock is $154.00 – $188.00. Based on these forecasts, analysts predict Darden Restaurants Inc. (DRI) will achieve an average price target of $173.04.
