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Is a Correction Looming Ahead for Darden Restaurants Inc. (DRI)

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Darden Restaurants Inc. (NYSE:DRI) went down by -1.28% from its latest closing price compared to the recent 1-year high of $164.28. The company’s stock price has collected -4.29% of loss in the last five trading sessions. The Wall Street Journal reported on 01/10/22 that Companies Boost Capital Spending, Betting Demand Will Stay Strong

Is It Worth Investing in Darden Restaurants Inc. (NYSE :DRI) Right Now?

Darden Restaurants Inc. (NYSE:DRI) scored a price-to-earnings ratio above its average ratio, recording 20.73 x from its present earnings ratio. Plus, the 36-month beta value for DRI is at 1.45. Opinions of the stock are interesting as 16 analysts out of 28 who provided ratings for Darden Restaurants Inc. declared the stock was a “buy,” while 3 rated the stock as “overweight,” 8 rated it as “hold,” and 0 as “sell.”

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The average price from analysts is $167.56, which is $21.77 above the current price. DRI currently public float of 127.02M and currently shorts hold a 2.38% ratio of that float. Today, the average trading volume of DRI was 1.17M shares.

DRI’s Market Performance

DRI stocks went down by -4.29% for the week, with a monthly drop of -4.42% and a quarterly performance of -4.66%, while its annual performance rate touched 13.96%. The volatility ratio for the week stands at 2.81% while the volatility levels for the past 30 days are set at 2.72% for Darden Restaurants Inc.. The simple moving average for the period of the last 20 days is -1.52% for DRI stocks with a simple moving average of -0.12% for the last 200 days.

Analysts’ Opinion of DRI

Many brokerage firms have already submitted their reports for DRI stocks, with Stifel repeating the rating for DRI by listing it as a “Buy.” The predicted price for DRI in the upcoming period, according to Stifel is $165 based on the research report published on December 22nd of the previous year 2021.

MKM Partners gave a rating of “Buy” to DRI, setting the target price at $168 in the report published on June 25th of the previous year.

DRI Trading at -1.34% from the 50-Day Moving Average

After a stumble in the market that brought DRI to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -11.67% of loss for the given period.

Volatility was left at 2.72%, however, over the last 30 days, the volatility rate increased by 2.81%, as shares sank -1.82% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +0.67% upper at present.

During the last 5 trading sessions, DRI fell by -4.29%, which changed the moving average for the period of 200-days by +0.96% in comparison to the 20-day moving average, which settled at $147.21. In addition, Darden Restaurants Inc. saw -3.68% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at DRI starting from LEE EUGENE I JR, who sale 76,725 shares at the price of $152.38 back on Jan 05. After this action, LEE EUGENE I JR now owns 222,480 shares of Darden Restaurants Inc., valued at $11,691,397 using the latest closing price.

ATKINS M SHAN, the Director of Darden Restaurants Inc., sale 3,123 shares at $151.11 during a trade that took place back on Dec 28, which means that ATKINS M SHAN is holding 2,714 shares at $471,917 based on the most recent closing price.

Stock Fundamentals for DRI

Current profitability levels for the company are sitting at:

  • +8.64 for the present operating margin
  • +15.89 for the gross margin

The net margin for Darden Restaurants Inc. stands at +8.79. The total capital return value is set at 7.35, while invested capital returns managed to touch 7.76. Equity return is now at value 34.50, with 8.80 for asset returns.

Based on Darden Restaurants Inc. (DRI), the company’s capital structure generated 204.67 points at debt to equity in total, while total debt to capital is 67.18. Total debt to assets is 47.11, with long-term debt to equity ratio resting at 198.13. Finally, the long-term debt to capital ratio is 65.03.

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When we switch over and look at the enterprise to sales, we see a ratio of 2.71, with the company’s debt to enterprise value settled at 0.25. The receivables turnover for the company is 121.97 and the total asset turnover is 0.61. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.01.

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