The stock price of Darden Restaurants, Inc. (NYSE: DRI) has dropped by -0.76 compared to previous close of 154.14. Despite this, the company has seen a fall of -1.88% in its stock price over the last five trading days. 24/7 Wall Street reported 2024-04-16 that A report from Bloomberg today says that Red Lobster has engaged with a law firm as it decides whether to declare bankruptcy.
Is It Worth Investing in Darden Restaurants, Inc. (NYSE: DRI) Right Now?
Darden Restaurants, Inc. (NYSE: DRI) has a price-to-earnings ratio that is above its average at 17.93x. The stock has a 36-month beta value of 1.26. Opinions on the stock are mixed, with 3 analysts rating it as a “buy,” 6 as “overweight,” 17 as “hold,” and 1 as “sell.”
The public float for DRI is 118.90M, and at present, short sellers hold a 4.96% of that float. On April 18, 2024, the average trading volume of DRI was 1.16M shares.
DRI’s Market Performance
DRI stock saw a decrease of -1.88% in the past week, with a monthly decline of -11.51% and a quarterly a decrease of -3.01%. The volatility ratio for the week is 1.77%, and the volatility levels for the last 30 days are 1.76% for Darden Restaurants, Inc. (DRI). The simple moving average for the last 20 days is -5.42% for DRI’s stock, with a simple moving average of -3.54% for the last 200 days.
Analysts’ Opinion of DRI
Many brokerage firms have already submitted their reports for DRI stocks, with Stephens repeating the rating for DRI by listing it as a “Equal-Weight.” The predicted price for DRI in the upcoming period, according to Stephens is $170 based on the research report published on April 12, 2024 of the current year 2024.
Deutsche Bank, on the other hand, stated in their research note that they expect to see DRI reach a price target of $159. The rating they have provided for DRI stocks is “Buy” according to the report published on October 19th, 2023.
Piper Sandler gave a rating of “Neutral” to DRI, setting the target price at $167 in the report published on July 18th of the previous year.
DRI Trading at -7.92% 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 -13.50% of loss for the given period.
Volatility was left at 1.76%, however, over the last 30 days, the volatility rate increased by 1.77%, as shares sank -12.13% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -7.01% lower at present.
During the last 5 trading sessions, DRI fell by -1.88%, which changed the moving average for the period of 200-days by -8.45% in comparison to the 20-day moving average, which settled at $160.68. In addition, Darden Restaurants, Inc. saw -6.90% 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 Simon William S, who sale 1,219 shares at the price of $158.21 back on Apr 08 ’24. After this action, Simon William S now owns 6,281 shares of Darden Restaurants, Inc., valued at $192,858 using the latest closing price.
Martin Melvin John, the President, SRG of Darden Restaurants, Inc., sale 3,100 shares at $167.62 during a trade that took place back on Mar 28 ’24, which means that Martin Melvin John is holding 14,108 shares at $519,622 based on the most recent closing price.
Stock Fundamentals for DRI
Current profitability levels for the company are sitting at:
- 0.12 for the present operating margin
- 0.2 for the gross margin
The net margin for Darden Restaurants, Inc. stands at 0.09. The total capital return value is set at 0.14. Equity return is now at value 49.05, with 9.67 for asset returns.
Based on Darden Restaurants, Inc. (DRI), the company’s capital structure generated 0.41 points at debt to capital in total, while cash flow to debt ratio is standing at 1.04. The debt to equity ratio resting at 0.7. The interest coverage ratio of the stock is 12.54.
Currently, EBITDA for the company is 1.57 billion with net debt to EBITDA at 2.88. When we switch over and look at the enterprise to sales, we see a ratio of 2.08. The receivables turnover for the company is 155.15for trailing twelve months and the total asset turnover is 0.99. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.39.
Conclusion
To sum up, Darden Restaurants, Inc. (DRI) has seen a bad performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
