On June 29, 2023, Daniel Kiernan, President of Olive Garden, a division of Darden Restaurants Inc (DRI, Financial), sold 12,639 shares of the company. This move is part of a larger trend, as Kiernan has sold a total of 22,929 shares over the past year, without any purchases.
Daniel Kiernan is a seasoned executive with a wealth of experience in the restaurant industry. As President of Olive Garden, he oversees one of the most popular and profitable divisions of Darden Restaurants Inc. His insider trading activities, therefore, are closely watched by investors and analysts alike.
Darden Restaurants Inc is a full-service restaurant company. The firm operates more than 1,700 restaurants where it serves mainly American food across its eight brands. Its brand portfolio includes Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, and Eddie V's.
The insider transaction history for Darden Restaurants Inc shows a clear trend of insider selling, with 21 insider sells over the past year and no insider buys. This could be a signal to investors about the company's future prospects, although it's important to note that insider selling can occur for a variety of reasons, not all of which are negative.
On the day of Kiernan's recent sell, Darden Restaurants Inc's shares were trading at $165.09, giving the company a market cap of $20.2 billion. The stock's price-earnings ratio of 20.89 is lower than the industry median of 25.88, suggesting that it may be undervalued compared to its peers. However, it's higher than the company's historical median price-earnings ratio, indicating that it may be overvalued based on its own past performance.
The stock's price-to-GF-Value ratio of 0.99 suggests that it's fairly valued based on its GF Value of $166.45. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, while Kiernan's recent sell may raise some eyebrows, the overall valuation of Darden Restaurants Inc suggests that the stock is fairly valued at its current price. Investors should continue to monitor insider trading activities and other key indicators to make informed decisions.
