Wealthfront Advisers LLC has significantly decreased its investment in Darden Restaurants, Inc. (NYSE: DRI), reducing its shareholding by 23.6% during the third quarter of 2023. The firm reported in its latest 13F filing with the Securities and Exchange Commission (SEC) that it now holds 8,136 shares of the restaurant operator’s stock, a decrease of 2,512 shares from the previous quarter. The value of Wealthfront’s holdings in Darden Restaurants is approximately $1,549,000.
Other institutional investors have also adjusted their positions in Darden. Twin Peaks Wealth Advisors LLC entered the market with a new stake valued at around $26,000 during the second quarter. Quent Capital LLC followed suit, acquiring a position worth approximately $27,000 in the third quarter. Additionally, True Wealth Design LLC raised its stake by an impressive 419.2%, now owning 135 shares valued at $29,000. Elevation Point Wealth Partners LLC and Atlantic Union Bankshares Corp also made new acquisitions, valued at about $29,000 and $44,000, respectively. Currently, institutional investors own 93.64% of Darden’s stock.
Market Performance and Dividend Announcement
As of the latest trading session, Darden Restaurants stock opened at $211.42, reflecting a 0.7% decline. The stock has shown a 50-day moving average price of $198.27 and a 200-day moving average price of $194.11. Darden’s market capitalization stands at $24.34 billion, with a price-to-earnings ratio of 22.16. The company has experienced a 52-week low of $169.00 and a high of $228.27.
In addition to its stock performance, Darden recently declared a quarterly dividend of $1.50, which was distributed to shareholders on February 2, 2024. The annualized dividend now stands at $6.00, translating to a dividend yield of 2.8%. The ex-dividend date for this payment was January 9, 2024, and the company’s payout ratio is noted at 62.89%.
Insider Trading Activities
Recent transactions by company insiders have also attracted attention. Chief Financial Officer Rajesh Vennam sold 6,774 shares on January 15, 2024, at an average price of $214.12, amounting to $1,450,448.88. Following this sale, Vennam retains 9,040 shares valued at approximately $1,935,644.80, marking a 42.84% reduction in his stake.
Similarly, insider John W. Wilkerson sold 2,258 shares on January 16, 2024, for a total of $480,954.00. Wilkerson now holds 17,784 shares valued at around $3,787,992, reflecting an 11.27% decrease in his position. Over the last ninety days, insiders have sold a total of 18,770 shares valued at $3,948,970, with corporate insiders owning 0.49% of the stock.
Analyst Ratings and Future Outlook
Despite recent fluctuations, analysts remain optimistic about Darden Restaurants. A number of equity analysts have reaffirmed their ratings, with TD Cowen maintaining a “hold” rating on December 19, 2023. Meanwhile, Weiss Ratings upgraded Darden from a “hold (C+)” to a “buy (B-)” rating on January 12, 2024. UBS Group reiterated a “buy” rating, while Guggenheim adjusted its price target from $235.00 to $230.00, also rating the stock as a “buy.”
Overall, Darden Restaurants has garnered substantial interest, with twenty analysts rating the stock as a buy and nine issuing hold ratings. According to data from MarketBeat, Darden currently holds a consensus rating of “Moderate Buy” and an average target price of $224.78.
Darden Restaurants, Inc., headquartered in Orlando, Florida, operates a diverse portfolio of casual and fine-dining establishments, including well-known brands such as Olive Garden and LongHorn Steakhouse. The company serves millions of guests across various dining formats and continues to adapt its offerings to meet customer preferences.
