In recent market activity, Matthew R. Broad, the Senior Vice President and General Counsel of Darden Restaurants Inc. (NYSE:DRI), has sold shares of the company's stock, totaling approximately $749,824. The transaction took place on September 23, with the sale of 4,360 shares at an average price of $171.978 per share.
This sale was executed across multiple trades, with prices ranging from $171.88 to $172.10. The reported price reflects the weighted average sale price, as per the footnotes in the SEC filing. Broad undertook to provide full information regarding the specific numbers of shares and the prices at which the transactions were carried out, if requested by the SEC staff, the issuer, or a security holder of the issuer.
Following the sale, Broad's remaining direct ownership in Darden Restaurants stands at 14,248.789 shares. This figure includes shares acquired through the Darden Restaurants, Inc. Employee Stock Purchase Plan and the dividend reinvestment feature of the plan. It is also noted that the total reported has been adjusted to correct an error from a previous Form 4 filed on July 31, 2024, which had overstated the total holdings by 5,471 shares.
The sale and subsequent adjustments to holdings have been duly recorded in compliance with SEC regulations, as evidenced by the signature of Anthony G. Morrow, Attorney-in-fact for Broad, on September 25, 2024.
In other recent news, Darden Restaurants' first-quarter fiscal year 2025 earnings per share fell short of expectations, settling at $1.75. Despite this, the company saw a slight 1% rise in sales, reaching $2.8 billion. Darden has also announced the future acquisition of Chuy's (NASDAQ:CHUY), which is anticipated to have a neutral impact on earnings per share. In response to these recent developments, several firms have adjusted their price targets. KeyBanc Capital Markets, for instance, raised its target to $194, citing potential benefits from a partnership with Uber (NYSE:UBER). Other firms including BMO (TSX:BMO) Capital, Raymond James, and TD (TSX:TD) Cowen have also revised their targets to $175, $187, and $165, respectively. Additionally, Evercore ISI upgraded Darden's stock to "Outperform" and raised its target to $205. These adjustments reflect a range of expectations for Darden's performance, influenced by the company's strategic moves such as the Uber partnership and acquisition of Chuy's.
InvestingPro Insights
Amidst the news of Matthew R. Broad's stock sale in Darden Restaurants Inc. (NYSE:DRI), it's worth noting some key financial metrics that could be influencing investor sentiment and insider decisions. Darden Restaurants has demonstrated a strong track record of returning value to shareholders, with the company raising its dividend for 4 consecutive years. This is indicative of the company’s commitment to consistent shareholder returns, a factor that could provide some reassurance amidst insider sales.
On the financial front, Darden Restaurants boasts a market capitalization of $20.03 billion, reflecting its substantial presence in the industry. The company's Price to Earnings (P/E) ratio stands at 19.39, which, when adjusted for the last twelve months as of Q1 2025, is slightly lower at 19.04. This suggests a stable earnings outlook as perceived by the market. Additionally, the company has experienced a revenue growth of 5.98% over the last twelve months as of Q1 2025, signaling a positive trajectory in its business operations.
Investors should also be aware of the company's recent performance, with a significant return over the last week of 7.52%. This could be a reflection of market confidence or a response to short-term events. For those interested in exploring more about Darden Restaurants' prospects and financial health, there are additional InvestingPro Tips available, which can provide deeper insights into potential investment strategies.
For more detailed analysis and further tips on Darden Restaurants Inc., investors can visit https://www.investing.com/pro/DRI, where there are 11 additional InvestingPro Tips available to help guide investment decisions.
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