Evercore ISI has recently raised Darden Restaurants, Inc. (DRI) stock rating, as announced on September 20, 2024, according to Finviz. Earlier, on September 20, 2024, Bernstein had reduced the stock from a Outperform to Mkt Perform, setting a price target of $180 for DRI stock. TD Cowen also reduced Hold rating with a price target of $150. Additionally, Jefferies reduced Underperform rating on July 11, 2024, with a target price of $124. BTIG Research analysts, in their report published on May 17, 2024, also raised Buy rating for Darden Restaurants, Inc.’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Darden Restaurants, Inc. (DRI) Stock Trading Recap
On Tuesday, Darden Restaurants, Inc. (DRI) stock saw a decline, ending the day at $164.12 which represents a decrease of $-0.01 or -0.01% from the prior close of $164.13. The stock opened at $164.17 and touched a low of $162.97 during the day, reaching a high of $164.96. The volume of shares traded was 1.34 million exceeding the average volume of 1.33 million.
DRI Stock Performance and Moving Averages
In recent trading, Darden Restaurants, Inc. (DRI) stock price has shown some volatility, fluctuating -4.09% over the last five trades and 3.77% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 0.09%, and it has gained 11.82% in the previous three months. Currently, DRI is trading at 0.83%, 6.91%, and 4.66% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, DRI, a Consumer Cyclical sector stock, is trading -7.19% below its 52-week high but remains 23.07% above its 52-week low. The Average True Range (ATR) (14 days) of 3.4 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Darden Restaurants, Inc.’s Profitability and Valuation Ratios
Darden Restaurants, Inc.’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 11.85% and a profit margin of 9.11%, with a gross margin of 0.09%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Darden Restaurants, Inc.’s market capitalization stands at $19.28 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 18.96, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 15.57. Additionally, the Price-to-Sales Ratio is 1.69, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 9.03, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.44% of Darden Restaurants, Inc. (DRI)’s shares, while financial institutions hold 98.43%.
Notable insider trades include Martin Melvin John, President, SRG at Darden Restaurants, Inc. (DRI), who sold 2000 shares on Sep 27 ’24, at $167.23 each, totaling $0.33 million. On Sep 24 ’24, Williamson Laura B, President, LongHorn Steakhouse, sold 6392 shares for $173.07 each, amounting to $1.11 million. Additionally, on Sep 24 ’24, Madonna John W. sold 4735 shares at $172.96 each, generating $0.82 million.
