DRI stock: buy or sell?
September 20th, 2019
Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada.
Should I buy DRI stock?Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to define your own trading strategy that fits your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
None of our preferred buy setups matches with Darden Restaurants stock situation right now, therefore this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Darden Restaurants stock a buy?
Banks and financial institutions publish stock ratings everyday.At Stocks2.com, we gathered 15 ratings published for DRI stock in the last month. The general sentiment of these ratings is bullish for DRI stock, with 9 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-9-20||Piper Jaffray Companies||n/a||Overweight|
|2019-9-12||Wells Fargo & Co||n/a||Market Perform|
|2019-9-11||Goldman Sachs Group||n/a||Neutral|
|2019-8-27||Credit Suisse Group||n/a||Sell|
|2019-8-15||Jefferies Financial Group||n/a||Buy|
DRI stock analysis
After sliding a spooky -5.34% yesterday, Darden Restaurants closed today at $119.80 and depreciated a lame -0.73%.
Darden Restaurants depreciated -0.73% today to $119.80 after topping to all time highs on Sep/13. On September/13, DRI hit new all time highs, pushing higher previous ATH of $127.99 recorded on Sep 11th. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
After climbing for 4 weeks, this week Darden Restaurants plummed a bloodcurdling -5.92%, closing at $119.80.
Not so far away is the last price record Darden Restaurants marked last week. Since SMA20d and SMA40w crossed up late April, DRI price climbed $3.75 per share (3.23%). Since mid March when DRI stock price broke up the SMA40w line, it gained $13.59 (12.80%).
DRI stock price history
DRI stock went public on May 9th, 1995 with a price of $3.191. Since then, DRI stock grew a 3,655.50%, with an average of 152.30% per year. If you had invested right after DRI's IPO a $1,000 in DRI stock in 1995, it would worth $36,555.00 today.
1: Adjusted price after possible price splits or reverse-splits.
DRI stock historical price chart
DRI stock reached all-time highs on Sep 13th with a price of $128.41.
DRI stock price target is $127.30How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 4 price predictions for DRI stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-9-20||SunTrust Banks||Lowers Target||n/a||$139.00||-|
|2019-9-20||Piper Jaffray Companies||Reiterates||$125.00||$128.00||2.4%|
|2019-9-12||Wells Fargo & Co||Raises Target||$116.00||$117.00||0.9%|
Financials and fundamental analysis
Earnings date and Earnings per ShareAfter posting its last earnings report on March, Darden Restaurants . As soon as we get its actual EPS from the earnings report, we will extend this review.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Darden Restaurants annual sales boosted a dazzling 12.69% to $8,080.10 million dollars from $7,170.20 marked in 2017. When comparing 2018 vs 2017, in contrast, profit margin (that is, the net income divided by revenues) remained steady a 0.69% to 7.38%. To have an up to date view of the financial situation of Darden Restaurants, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Darden Restaurants TTM sales up to February 2019 were $8,415.40 and earnings were $679.90 M USD. If we compare this TTM figures with the last reported annuality, we can esteem Darden Restaurants business evolution since May 2018: Annual sales up to February, compared to lastest yearly report, raised a good 4.15%. However, profit margin (net income/sales) stayed stable at 7.38%.
|2013||$8,550 M||-||$413 M4.8%||-|
|2014||$6,290 M||-26.43%||$183 M2.9%||-55.60%|
|2015||$6,764 M||7.54%||$710 M10.5%||287.28%|
|2016||$6,934 M||2.51%||$375 M5.4%||-47.15%|
|2017||$7,170 M||3.41%||$479 M6.7%||27.76%|
|2018||$8,080 M||12.69%||$596 M7.4%||24.40%|
|TTM||$8,415 M||4.15%||$680 M8.1%||14.08%|
Quarterly financial resultsDarden Restaurants posted $2,246.50 M in sales for 2019-Q1, a 13.84% up compared to previous quarter. Reported quarter income marked $223.60 million with a profit margin of 9.95%. Profit margin gained a 4.10% compared to previous quarter when profit margin was 5.86%. When comparing revenues to same quarter last year, Darden Restaurants sales marked a decent increase and jumped a 5.55%.
|2017-Q2||$1,930 M||-||$125 M6.5%||-|
|2017-Q3||$1,940 M||0.52%||$121 M6.3%||-3.27%|
|2017-Q4||$1,882 M||-3.02%||$85 M4.5%||-30.17%|
|2018-Q1||$2,128 M||13.12%||$218 M10.2%||157.14%|
|2018-Q2||$2,134 M||0.27%||$175 M8.2%||-19.88%|
|2018-Q3||$2,061 M||-3.41%||$166 M8.1%||-4.76%|
|2018-Q4||$1,973 M||-4.27%||$116 M5.9%||-30.45%|
|2019-Q1||$2,247 M||13.84%||$224 M10.0%||93.43%|
Darden Restaurants ownershipWhen you are planning to buy shares of a stock, it's worth to review its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Darden Restaurants, 0.19% of all outstanding shares are owned by its staff.
Bearish positions for DRI stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Darden Restaurants:
|Market cap||$14.7 B|
|Total shares||122.8 M|
|Float shares||122.7 M|
|- Institutional holdings (%)||93.2%|
|- Insider holdings (%)||0.2%|
|Shares in short selling||0.0%|
|Friday, September 20th, 2019|
|Day range||$119.05 - $121.55|
|Average true range||$2.81|
|50d mov avg||$122.45|
|100d mov avg||$120.83|
|200d mov avg||$114.65|
Darden Restaurants performanceStocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared Darden Restaurants against in the following table:
Darden Restaurants competitorsUnfortunately, we could not find any public company that could be defined as Darden Restaurants competitor. This doesn't mean Darden Restaurants does not have any competitor in the market, it's just we could not detected it.
Latest DRI stock news
- InvestorPlaceDarden Restaurants Earnings: DRI Stock Edges Higher on Q4 Profit BeatJune 20, 2019
- Seeking AlphaDarden Restaurants: Well Worth An InvestmentJune 5, 2019
- InvestorPlaceWhy Darden Restaurants Stock Can Keep WinningMarch 25, 2019
- InvestorPlaceDarden Restaurants Earnings: DRI Stock Gains on Q3 Beat, GuidanceMarch 21, 2019
- Seeking AlphaDarden Restaurants Can Continue To OutperformDecember 26, 2018