In a recent transaction on April 8th, William S. Simon, a member of the board of directors for Darden Restaurants Inc. (NYSE:DRI), sold 1,219 shares of the company’s stock. The shares were sold at an average price of $158.21, totaling approximately $192,857 in value.
This sale has adjusted Simon’s holdings in the company, leaving him with 6,281 shares of Darden Restaurants stock. The transaction was disclosed in a legal filing with the Securities and Exchange Commission, which is publicly available for investors to review.
Darden Restaurants Inc., based in Orlando, Florida, is known for its chain of casual dining establishments, including popular brands such as Olive Garden and LongHorn Steakhouse. The company has a significant presence in the retail eating places industry and continues to be a major player in the sector.
Investors often keep an eye on insider transactions as they can provide insights into how the company’s executives and directors view the stock's future prospects. While a sale of stock by an insider may raise questions, it is also a common practice for various personal financial reasons.
The recent transaction by Simon is a notable event for investors following Darden Restaurants Inc., as it reflects a substantial amount of stock changing hands from a key insider in the company.
InvestingPro Insights
The recent insider transaction involving William S. Simon's sale of Darden Restaurants Inc. (NYSE:DRI) shares has drawn attention to the company's financial metrics and performance. According to InvestingPro data, Darden Restaurants currently boasts a market capitalization of $18.74 billion and a Price to Earnings (P/E) ratio of 18.29. Notably, the company's P/E ratio has adjusted slightly to 17.92 over the last twelve months as of Q3 2024, with a Price to Book value of 8.61 in the same period.
Investors tracking Darden Restaurants will find the company's revenue growth particularly noteworthy. Over the last twelve months as of Q3 2024, the company has experienced an 8.53% increase in revenue, bringing the total to approximately $11.2 billion. This growth is complemented by a solid gross profit margin of 21.03%, reflecting the company's ability to maintain profitability amidst industry challenges.
Two InvestingPro Tips that could be significant for investors are the fact that Darden Restaurants has raised its dividend for 3 consecutive years and 12 analysts have revised their earnings upwards for the upcoming period. These signs may indicate positive sentiment around the company's financial health and future performance. Additionally, Darden Restaurants has maintained dividend payments for 30 consecutive years, which could be a reassuring factor for income-focused investors.
For those interested in a deeper dive into Darden Restaurants' financials and performance metrics, InvestingPro offers a broad array of additional tips. In fact, there are 7 more InvestingPro Tips available, which could provide valuable insights into the company's valuation, profitability, and stock stability. To access these insights and more, consider subscribing to InvestingPro using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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