Rating Coverage: Is It Finally Time To Sell? Credit Suisse Downgrades Darden Restaurants (NYSE:DRI)

November 29, 2016 - By Clifton Ray

Rating Coverage: Is It Finally Time To Sell? Credit Suisse Downgrades Darden Restaurants (NYSE:DRI)

Darden Restaurants (NYSE:DRI) Downgrade

Professional analysts at Credit Suisse’s equities division downgraded Darden Restaurants (NYSE:DRI)‘s stock rating from “Outperform” to “Neutral” on Tuesday morning.

Darden Restaurants, Inc. (NYSE:DRI) Ratings Coverage

Out of 16 analysts covering Darden Restaurants (NYSE:DRI), 8 rate it a “Buy”, 2 “Sell”, while 6 “Hold”. This means 50% are positive. $80 is the highest target while $50 is the lowest. The $70.50 average target is -3.17% below today’s ($72.81) stock price. Darden Restaurants has been the topic of 30 analyst reports since August 25, 2015 according to StockzIntelligence Inc. The company was maintained on Monday, December 21 by RBC Capital Markets. The company was maintained on Monday, October 3 by Stifel Nicolaus. As per Thursday, October 8, the company rating was initiated by SunTrust. The rating was downgraded by Zacks on Tuesday, August 25 to “Strong-Buy”. Raymond James downgraded the shares of DRI in a report on Friday, January 29 to “Underperform” rating. Maxim Group upgraded Darden Restaurants, Inc. (NYSE:DRI) rating on Monday, October 19. Maxim Group has “Buy” rating and $80 price target. Barclays Capital maintained Darden Restaurants, Inc. (NYSE:DRI) on Wednesday, April 6 with “Overweight” rating. The firm earned “Market Perform” rating on Thursday, May 26 by Bernstein. Maxim Group initiated Darden Restaurants, Inc. (NYSE:DRI) on Wednesday, September 30 with “Hold” rating. Maxim Group maintained Darden Restaurants, Inc. (NYSE:DRI) on Friday, July 1 with “Buy” rating.

About 1.34 million shares traded hands. Darden Restaurants, Inc. (NYSE:DRI) has risen 15.77% since April 26, 2016 and is uptrending. It has outperformed by 10.51% the S&P500.

Analysts await Darden Restaurants, Inc. (NYSE:DRI) to report earnings on December, 16. They expect $0.63 EPS, up 16.67% or $0.09 from last year’s $0.54 per share. DRI’s profit will be $76.50M for 28.89 P/E if the $0.63 EPS becomes a reality. After $0.88 actual EPS reported by Darden Restaurants, Inc. for the previous quarter, Wall Street now forecasts -28.41% negative EPS growth.

Insitutional Activity: The institutional sentiment decreased to 0.91 in Q2 2016. Its down 0.18, from 1.09 in 2016Q1. The ratio worsened, as 46 funds sold all Darden Restaurants, Inc. shares owned while 172 reduced positions. 56 funds bought stakes while 182 increased positions. They now own 115.09 million shares or 1.22% less from 116.51 million shares in 2016Q1.

Advisory Service Net Ltd Liability Corp accumulated 0.09% or 6,100 shares. Bridgeway Cap Mngmt has 0.07% invested in the company for 69,900 shares. Ajo L P reported 47,252 shares or 0.01% of all its holdings. Jag Mgmt Limited Liability Co has invested 1.9% of its portfolio in Darden Restaurants, Inc. (NYSE:DRI). Farmers Merchants Investments accumulated 0% or 400 shares. Haverford Trust Company holds 0.01% or 4,811 shares in its portfolio. Moreover, First Quadrant Lp Ca has 0.01% invested in Darden Restaurants, Inc. (NYSE:DRI) for 4,452 shares. Gulf Intl State Bank (Uk) accumulated 0.04% or 36,924 shares. Cipher Lp holds 0.07% or 15,009 shares in its portfolio. Rothschild Asset Mgmt has 0.01% invested in the company for 7,536 shares. Washington Trust Savings Bank last reported 0% of its portfolio in the stock. Condor Mngmt holds 0.23% of its portfolio in Darden Restaurants, Inc. (NYSE:DRI) for 15,345 shares. The Missouri-based Moneta Group Investment Advsr Limited Co has invested 0.3% in Darden Restaurants, Inc. (NYSE:DRI). Chemical Bankshares holds 0.07% of its portfolio in Darden Restaurants, Inc. (NYSE:DRI) for 8,360 shares. Neuberger Berman Group Inc Ltd Liability has 0.07% invested in the company for 756,868 shares.

Insider Transactions: Since July 7, 2016, the stock had 1 buying transaction, and 1 insider sale for $2.12 million net activity. 3,000 Darden Restaurants, Inc. (NYSE:DRI) shares with value of $185,100 were bought by FOGARTY JAMES P. Kirgan Danielle L. sold $2.31M worth of stock.

Darden Restaurants, Inc. is a full-service restaurant company. The company has a market cap of $8.84 billion. The Firm owned and operated 1,536 restaurants through its subsidiaries in the United States and Canada, as of May 29, 2016. It has a 23.96 P/E ratio. The Company’s divisions include Olive Garden, LongHorn Steakhouse, Fine Dining ) and Other Business (which includes Yard House, Seasons 52, Bahama Breeze, consumer-packaged goods and franchise revenues).

According to Zacks Investment Research, “Darden Restaurants, Inc. is the world’s largest casual dining restaurant company based on market share, sales and number of company-owned and operated restaurants. Darden through its subsidiaries, engages in the ownership and operation of casual dining restaurants in the United States and Canada.”

DRI Company Profile

Darden Restaurants, Inc., incorporated on March 30, 1995, is a full-service restaurant company. The Firm owned and operated 1,536 restaurants through its subsidiaries in the United States and Canada, as of May 29, 2016. The Company’s divisions include Olive Garden, LongHorn Steakhouse, Fine Dining (which includes The Capital Grille, and Eddie V’s Prime Seafood and Wildfish Seafood Grille (Eddie V’s)) and Other Business (which includes Yard House, Seasons 52, Bahama Breeze, consumer-packaged goods and franchise revenues). As of May 29, 2016, the Company also had 50 restaurants operated by independent third parties pursuant to area development and franchise agreements.

More news for Darden Restaurants, Inc. (NYSE:DRI) were recently published by: Forbes.com, which released: “Short Interest In Darden Restaurants Makes 12.7% Move” on November 11, 2016. Prnewswire.com‘s article titled: “Restaurants Stocks Under Scanner — Darden Restaurants, Dunkin’ Brands …” and published on November 28, 2016 is yet another important article.

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