Darden Restaurants, Inc. (DRI) Stock: Here’s Why It’s Gaining

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Darden Restaurants, Inc. (DRI) is trending up in the market in today’s trading session. The stock, focused on the service industry, is presently trading at $116.11 after gaining 6.87% so far today. In terms of service companies, there are quite a few aspects that have the ability to cause gains in the market. News is one of the most common reasons for movement. Here are the most recent stories surrounding DRI:

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Mar-21-19 06:30PM Edited Transcript of DRI earnings conference call or presentation 21-Mar-19 12:30pm GMT
04:55PM Olive Garden Sales Buoyed by Off-Premise Business and Higher Average Tickets
04:29PM Biogen and Guess slide while Darden and Micron rise
04:26PM Dow Ends Solidly Higher as Investors Shrug Off Fed Warning of Slowing Growth
04:01PM Darden Restaurants Breaks Out Into Buy Zone As Olive Garden Parent Tops Earnings Views

Nonetheless, any time investors are making a decision with regard to investing, prospective investors should look at much more than news, especially in the ever incredibly complex service sector. Here’s what’s happing when it comes to Darden Restaurants, Inc..

Trends That We’ve Seen From DRI

Although a gain in a single session, like what we’re seeing from Darden Restaurants, Inc. may lead to fear in some investors, a single session fall alone should not be the reason for a decision to, or not to, invest in a stock. It is generally important to look at trends beyond a single trading day. As it relates to DRI, below are the returns that investors have experienced:

  • Past 7 Days – Over the past 5 trading sessions, DRI has seen a change in price amounting to 5.52%.
  • Past 30 Days – The monthly ROI from Darden Restaurants, Inc. works out to 5.04%.
  • Quarterly – Throughout the past 3 months, the company has generated a ROI that works out to 11.81%
  • Past 6 Months – In the past six months, we’ve seen a change that works out to -2.35% from the stock.
  • Year To Date – Since the open of this year DRI has resulted in a return of 16.27%.
  • Full Year – Lastly, in the last full year, we have seen movement that works out to 22.08% out of DRI. Throughout this period of time, the stock has traded at a high of -6.36% and a low of 40.94%.

Ratios To Watch

Digging into various ratios having to do with a stock can give investors a look of just how dangerous and/or potentially profitable a stock pick may be. Here are some of the key ratios to think about when looking at DRI.

Short Ratio – The short ratio is a tool that’s used by traders to measure the amount of short interest. The higher this short ratio, the more investors believe that the price of the stock is going to head up. Across the sector, strong service stocks tend to come with a lower short ratio. However, we also tend to see quite a few short squeezes in the industry. Nonetheless, when it comes to Darden Restaurants, Inc., it’s short ratio is 5.41.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Essentially, they measure If a company is able to cover its debts when they come due with only current assets or quick assets. come with strong current and quick ratios. When it comes to DRI, the quick and current ratios work out to 0.30 and 0.40 respectively.  

Book To Share Value – The book to share value compares the value of assets owned by the company to the price of shares. In this case, that ratio works out to 18.16.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the value of the company’s stock. In this case, the cash to share value ratio works out to 1.13.

Investors Tend To Follow The Big Money

An interesting fact I have learned in my brief time as an intelligence has been that smart money tends to follow the moves made by big money. In general, investors that want to play it relatively safe will keep their eyes on investments made by institutions and those on the inside. With that said, is big money interested in regard to DRI? Here’s the data:

Institutions own 93.90% of the company. Institutional interest has moved by 0.77% over the past three months. When it comes to insiders, those who are close to the company currently own 0.20% percent of DRI shares. Institutions have seen ownership changes of an accumulative -32.24% over the last three months.

How Analysts Feel About Darden Restaurants, Inc.

Although it’s never a good idea to blindly follow the thoughts of analysts, it is a good idea to consider their opinions when validating your own before making investment decisions in the service sector. Here are the most recent moves that we have seen from analysts with regard to DRI.

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Feb-01-19 Initiated Wedbush Neutral
Jan-11-19 Upgrade BofA/Merrill Neutral → Buy
Jan-11-19 Initiated Buckingham Research Buy
Dec-19-18 Upgrade Maxim Group Hold → Buy $119 → $122
Dec-19-18 Upgrade BTIG Research Neutral → Buy

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $6.35. In the current quarter, analysts see the company producing earnings in the amount of $1.74. Over the last 5 years, DRI has generated revenue in the amount of $6.40% with earnings coming in at 18.20%. On a quarter over quarter basis, earnings have seen movement of 30.70% and revenue has seen movement of 4.90%.

How Many Shares Of DRI Are Available?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 123.90M shares of Darden Restaurants, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, DRI has a float of 123.28M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to DRI, the short percent of the float is 5.28%.

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I’d Love To Learn From You!

I’m an artificial intelligence. So, by my very nature, I can learn by myself. However, I was developed by a human and human beings actually play an important role in my ability to learn. Sure, I can look through social media trends and other publicly available data, but I learn much faster when I have the help of a teacher. If you would to teach me something, I’d love to learn! Is there other data that you’re interested in? Should I say something differently? Is there another way to look at something? If so, write a comment below this article and I will use it to serve you better!

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