Are Darden Restaurants, Inc (DRI) stocks a prudent buy?

Darden Restaurants, Inc [DRI] stock is trading at $195.24, down -0.48%. An important factor to consider is whether the stock is rising or falling in short-term value. The DRI shares have gain 4.07% over the last week, with a monthly amount glided 4.53%, and seem to be holding up well over a long-time horizon.

From an analyst’s perspective:

Darden Restaurants, Inc [NYSE: DRI] stock has seen the most recent analyst activity on January 22, 2025, when Bernstein upgraded its rating to a Outperform and also boosted its price target to $215 from $180. Previously, Goldman started tracking the stock with Neutral rating on December 05, 2024, and set its price target to $183. On September 20, 2024, upgrade upgraded it’s rating to Outperform and revised its price target to $205 on the stock. Bernstein downgraded its rating to a Mkt Perform and decreased its price target to $180 on September 20, 2024. TD Cowen downgraded its rating to a Hold and reduced its price target to $150 on July 23, 2024. Jefferies downgraded its rating to Underperform for this stock on July 11, 2024, and downed its price target to $124. In a note dated May 17, 2024, BTIG Research upgraded an Buy rating on this stock but restated the target price of $175.

Darden Restaurants, Inc [DRI] stock has fluctuated between $135.87 and $196.65 over the past year. Currently, Wall Street analysts expect the stock to reach $191.61 within the next 12 months. Darden Restaurants, Inc [NYSE: DRI] shares were valued at $195.24 at the most recent close of the market. An investor can expect a potential drop of -1.86% based on the average DRI price forecast.

Analyzing the DRI fundamentals

Darden Restaurants, Inc [NYSE:DRI] reported sales of 11.58B for the trailing twelve months, which represents a growth of 5.97%. Gross Profit Margin for this corporation currently stands at 0.31% with Operating Profit Margin at 0.12%, Pretax Profit Margin comes in at 0.1%, and Net Profit Margin reading is 0.09%. To continue investigating profitability, this company’s Return on Assets is posted at 0.08, Equity is 0.48 and Total Capital is 0.13. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 3.06.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 194.57 points at the first support level, and at 193.89 for the second support level. However, for the 1st resistance point, the stock is sitting at 196.36, and for the 2nd resistance point, it is at 197.47.

Ratios To Look Out For

For context, Darden Restaurants, Inc’s Current Ratio is 0.37. On the other hand, the Quick Ratio is 0.23, and the Cash Ratio is 0.09. Considering the valuation of this stock, the price to sales ratio is 1.98, the price to book ratio is 11.05 and price to earnings (TTM) ratio is 22.39.

Transactions by insiders

Recent insider trading involved DOUGLAS J MILANES, Officer, that happened on Jan 30 ’25 when 7892.0 shares were purchased. SVP General Counsel, Broad Matthew R completed a deal on Jan 21 ’25 to sell 12759.0 shares. Meanwhile, Officer MATTHEW R BROAD bought 12759.0 shares on Jan 21 ’25.

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