Darden Restaurants Stock Buy Hold or Sell Recommendation
DRI Stock | USD 166.97 3.47 2.12% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Darden Restaurants is 'Hold'. Macroaxis provides Darden Restaurants buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding DRI positions. The advice algorithm takes into account all of Darden Restaurants' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Darden Restaurants' buy or sell advice are summarized below:
Real Value 168.07 | Target Price 169.39 | Hype Value 167.02 | Market Value 166.97 | Naive Value 158.23 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Darden Restaurants given historical horizon and risk tolerance towards Darden Restaurants. When Macroaxis issues a 'buy' or 'sell' recommendation for Darden Restaurants, the advice is generated through an automated system that utilizes algorithms and statistical models.
Darden |
Execute Darden Restaurants Buy or Sell Advice
The Darden recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Darden Restaurants. Macroaxis does not own or have any residual interests in Darden Restaurants or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Darden Restaurants' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Darden Restaurants Trading Alerts and Improvement Suggestions
The company has 4.55 B in debt with debt to equity (D/E) ratio of 2.89, meaning that the company heavily relies on borrowing funds for operations. Darden Restaurants has a current ratio of 0.51, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Darden Restaurants until it has trouble settling it off, either with new capital or with free cash flow. So, Darden Restaurants' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Darden Restaurants sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Darden to invest in growth at high rates of return. When we think about Darden Restaurants' use of debt, we should always consider it together with cash and equity. | |
Darden Restaurants has a poor financial position based on the latest SEC disclosures | |
Over 95.0% of Darden Restaurants shares are held by institutions such as insurance companies | |
On 1st of February 2024 Darden Restaurants paid $ 1.31 per share dividend to its current shareholders | |
Latest headline from bizjournals.com: LongHorn Steakhouse to open its Clintonville restaurant next month |
Darden Restaurants Returns Distribution Density
The distribution of Darden Restaurants' historical returns is an attempt to chart the uncertainty of Darden Restaurants' future price movements. The chart of the probability distribution of Darden Restaurants daily returns describes the distribution of returns around its average expected value. We use Darden Restaurants price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Darden Restaurants returns is essential to provide solid investment advice for Darden Restaurants.
Mean Return | 0.06 | Value At Risk | -1.6 | Potential Upside | 1.63 | Standard Deviation | 1.28 |
Return Density |
Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Darden Restaurants historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Darden Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Darden Restaurants is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Darden Restaurants backward and forwards among themselves. Darden Restaurants' institutional investor refers to the entity that pools money to purchase Darden Restaurants' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares | Wellington Management Company Llp | 2023-12-31 | 1.8 M | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 1.7 M | Amvescap Plc. | 2023-12-31 | 1.6 M | Earnest Partners Llc | 2023-12-31 | 1.5 M | Congress Asset Management Company, Llp | 2023-12-31 | 1.4 M | Northern Trust Corp | 2023-12-31 | 1.4 M | Jpmorgan Chase & Co | 2023-12-31 | 1.4 M | Arrowstreet Capital Limited Partnership | 2023-12-31 | 1.3 M | Goldman Sachs Group Inc | 2023-12-31 | 1.2 M | Capital World Investors | 2023-12-31 | 16.4 M | Vanguard Group Inc | 2023-12-31 | 14 M |
Darden Restaurants Cash Flow Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Change In Cash | 306M | 451.4M | (742.6M) | (55.9M) | (64.3M) | (61.1M) | |
Free Cash Flow | 217.3M | 924.9M | 857M | 951.8M | 1.1B | 1.1B | |
Depreciation | 355.9M | 350.9M | 368.4M | 387.8M | 446.0M | 280.9M | |
Other Non Cash Items | 663.2M | (162.1M) | 13.2M | 115.6M | 132.9M | 150.9M | |
Capital Expenditures | 494M | 269.1M | 399.1M | 593.8M | 682.9M | 412.8M | |
Net Income | (49.2M) | 632.4M | 954.7M | 983.5M | 1.1B | 1.2B | |
End Period Cash Flow | 763.3M | 1.2B | 472.1M | 416.2M | 478.6M | 502.6M | |
Change To Inventory | (13.9M) | 16.1M | (79.8M) | (17.3M) | (15.6M) | (14.8M) | |
Dividends Paid | 322.3M | 202.6M | 563M | 589.8M | 678.3M | 712.2M | |
Change To Netincome | (92.9M) | 216.7M | 51.9M | (8.8M) | (10.1M) | (9.6M) | |
Investments | (544M) | (263.7M) | (389M) | (568.4M) | (511.6M) | (486.0M) | |
Net Borrowings | (6.2M) | 264.8M | (277.1M) | (12.9M) | (14.8M) | (15.6M) |
Darden Restaurants Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Darden Restaurants or Hotels, Restaurants & Leisure sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Darden Restaurants' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Darden stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.03 | |
β | Beta against NYSE Composite | 0.72 | |
σ | Overall volatility | 1.32 | |
Ir | Information ratio | -0.05 |
Darden Restaurants Volatility Alert
Darden Restaurants has relatively low volatility with skewness of -1.99 and kurtosis of 9.8. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Darden Restaurants' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Darden Restaurants' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Darden Restaurants Fundamentals Vs Peers
Comparing Darden Restaurants' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Darden Restaurants' direct or indirect competition across all of the common fundamentals between Darden Restaurants and the related equities. This way, we can detect undervalued stocks with similar characteristics as Darden Restaurants or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Darden Restaurants' fundamental indicators could also be used in its relative valuation, which is a method of valuing Darden Restaurants by comparing valuation metrics with those of similar companies.
Better Than Average | Worse Than Average | Compare Darden Restaurants to competition |
Fundamentals | Darden Restaurants | Peer Average |
Return On Equity | 0.49 | -0.31 |
Return On Asset | 0.0762 | -0.14 |
Profit Margin | 0.09 % | (1.27) % |
Operating Margin | 0.13 % | (5.51) % |
Current Valuation | 25 B | 16.62 B |
Shares Outstanding | 119.41 M | 571.82 M |
Shares Owned By Insiders | 0.36 % | 10.09 % |
Shares Owned By Institutions | 95.20 % | 39.21 % |
Number Of Shares Shorted | 5.56 M | 4.71 M |
Price To Earning | 20.13 X | 28.72 X |
Price To Book | 9.14 X | 9.51 X |
Price To Sales | 1.78 X | 11.42 X |
Revenue | 10.49 B | 9.43 B |
Gross Profit | 2 B | 27.38 B |
EBITDA | 1.57 B | 3.9 B |
Net Income | 983.5 M | 570.98 M |
Cash And Equivalents | 367.8 M | 2.7 B |
Cash Per Share | 3.08 X | 5.01 X |
Total Debt | 4.55 B | 5.32 B |
Debt To Equity | 2.89 % | 48.70 % |
Current Ratio | 0.52 X | 2.16 X |
Book Value Per Share | 18.27 X | 1.93 K |
Cash Flow From Operations | 1.55 B | 971.22 M |
Short Ratio | 5.48 X | 4.00 X |
Earnings Per Share | 8.53 X | 3.12 X |
Price To Earnings To Growth | 1.75 X | 4.89 X |
Target Price | 179.48 | |
Number Of Employees | 187.38 K | 18.84 K |
Beta | 1.25 | -0.15 |
Market Capitalization | 19.94 B | 19.03 B |
Total Asset | 10.24 B | 29.47 B |
Retained Earnings | (32.5 M) | 9.33 B |
Working Capital | (939.7 M) | 1.48 B |
Note: Disposition of 4286 shares by Sarah King of Darden Restaurants at 165.2484 subject to Rule 16b-3 [view details]
Darden Restaurants Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Darden . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution | 21165.06 | |||
Daily Balance Of Power | 1.108626 | |||
Rate Of Daily Change | 1.02 | |||
Day Median Price | 165.42 | |||
Day Typical Price | 165.93 | |||
Price Action Indicator | 3.29 | |||
Period Momentum Indicator | 3.47 | |||
Relative Strength Index | 90.54 |
About Darden Restaurants Buy or Sell Advice
When is the right time to buy or sell Darden Restaurants? Buying financial instruments such as Darden Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 4.9B | 4.6B | 5.2B | 5.5B | Total Assets | 10.1B | 10.2B | 11.8B | 12.4B |
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In addition to having Darden Restaurants in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Darden Restaurants Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in Darden Stock please use our How to Invest in Darden Restaurants guide.You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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Is Darden Restaurants' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Darden Restaurants. If investors know Darden will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Darden Restaurants listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.11 | Dividend Share 5.14 | Earnings Share 8.53 | Revenue Per Share 93.095 | Quarterly Revenue Growth 0.068 |
The market value of Darden Restaurants is measured differently than its book value, which is the value of Darden that is recorded on the company's balance sheet. Investors also form their own opinion of Darden Restaurants' value that differs from its market value or its book value, called intrinsic value, which is Darden Restaurants' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Darden Restaurants' market value can be influenced by many factors that don't directly affect Darden Restaurants' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Darden Restaurants' value and its price as these two are different measures arrived at by different means. Investors typically determine if Darden Restaurants is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Darden Restaurants' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.