Insider Stock Transactions at Darden Restaurants

In a recent transaction, Laura B. Williamson, President of LongHorn Steakhouse, a division of Darden Restaurants Inc. (NYSE:DRI), sold a significant portion of her company stock. The executive offloaded 1,666 shares at prices ranging between $171.915 and $172.0402, netting a total of $286,546.

The sale took place on September 23, 2024, as indicated by the latest regulatory filings with the SEC. In the same set of transactions, Williamson also acquired 1,086 shares of Darden Restaurants at a price of $78.84 per share, amounting to a total of $85,620. This acquisition was executed through the exercise of stock options that vested in two equal annual installments beginning on July 29, 2023.

Following these transactions, Williamson’s direct and indirect holdings in Darden Restaurants have undergone changes. Notably, the indirect holdings by the executive’s spouse include shares acquired through the Darden Restaurants, Inc. Employee Stock Purchase Plan and its dividend reinvestment feature. Additionally, the reporting documents indicate that Williamson has an undivided interest in a fund consisting of Darden common stock and a variable cash position.

Investors and market watchers often scrutinize insider buying and selling as it can provide insights into an executive’s perspective on the company’s future performance. The sale of a significant amount of stock by a high-ranking executive such as Williamson may attract attention from the investment community.

Darden Restaurants, based in Orlando, Florida, is a leading full-service restaurant company featuring a portfolio of differentiated brands that include Olive Garden, LongHorn Steakhouse, and others. The company’s stock is publicly traded on the New York Stock Exchange under the ticker symbol DRI.

Recent Company News

In other recent news, Darden Restaurants reported a slight 1% increase in sales, reaching $2.8 billion, and announced the future acquisition of Chuy’s, expected to have a neutral impact on earnings per share. The company’s first-quarter earnings per share (EPS) fell short of expectations by $0.08, settling at $1.75. Despite this, Darden reaffirmed its full-year financial guidance, buoyed by a recovery in sales trends and strategic initiatives such as a new partnership with Uber (NYSE:UBER) for delivery services.

Several financial firms have adjusted their price targets for Darden Restaurants. KeyBanc Capital Markets lifted its target to $194, BMO Capital to $175, Raymond James to $187, TD Cowen to $165, and Jefferies to $136. Evercore ISI upgraded the stock to “Outperform” and raised its target to $205, while Piper Sandler maintained a neutral stance with a $177 target. These adjustments follow Darden’s first-quarter fiscal year 2024 results and recent positive trends, along with new initiatives, that have led management to reconfirm its fiscal year 2025 projections.

InvestingPro Insights

As market participants evaluate the recent stock transactions by Laura B. Williamson, President of LongHorn Steakhouse, it’s worth considering the broader financial performance and market positioning of Darden Restaurants Inc. (NYSE:DRI). According to InvestingPro data, Darden Restaurants boasts a market capitalization of approximately $20.14 billion, underscoring its significant presence in the full-service restaurant industry. The company’s recent performance has been marked by a revenue growth of nearly 6% over the last twelve months leading up to Q1 2023, reflecting a steady business expansion despite a challenging economic environment.

InvestingPro Tips suggest that Darden Restaurants has maintained its dividend payments for an impressive 30 consecutive years, indicating a strong commitment to returning value to shareholders. Additionally, the company’s stock has experienced a significant return over the last week, with a price total return of 7.52%, which may signal investor confidence in the company’s near-term prospects. Moreover, with 14 analysts revising their earnings downwards for the upcoming period, investors may want to keep a close eye on future earnings reports to assess the company’s performance trajectory.

For those looking for more in-depth analysis, InvestingPro offers additional tips on Darden Restaurants, which can be accessed at InvestingPro DRI. These insights could provide further clarity on the company’s financial health and strategic direction, helping investors make more informed decisions.

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