On August 1, 2023, LEE EUGENE I JR, Chairman of the Board of Darden Restaurants Inc (DRI, Financial), sold 74,741 shares of the company. This move is part of a series of transactions made by the executive over the past year, which have seen him sell a total of 281,820 shares and make no purchases.
Darden Restaurants Inc is a full-service restaurant company, recognized for a higher-end dining experience. The company operates through various segments, including Olive Garden, LongHorn Steakhouse, Fine Dining, and Other Business. With a market cap of $19.73 billion, Darden Restaurants Inc is a significant player in the restaurant industry.
The insider transaction history for Darden Restaurants Inc shows a trend of more sells than buys over the past year. There have been 26 insider sells and 0 insider buys in total. This could indicate that insiders believe the stock is currently overvalued, prompting them to sell their shares.
The shares of Darden Restaurants Inc were trading at $166.9 each on the day of LEE EUGENE I JR’s recent sell. This price gives the stock a price-earnings ratio of 20.37, which is lower than the industry median of 27.38 but higher than the company’s historical median price-earnings ratio.
With a GuruFocus Value of $168.38, Darden Restaurants Inc has a price-to-GF-Value ratio of 0.99. This suggests that the stock is fairly valued based on its GF Value. 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.
The recent sell by LEE EUGENE I JR, along with the overall trend of insider sells over the past year, could be a signal for investors to reassess the valuation of Darden Restaurants Inc. While the stock appears to be fairly valued based on its GF Value, the insider sell activity could suggest that the stock's current price may not be sustainable in the long term.
As always, investors should not solely rely on insider transactions when making investment decisions. It is crucial to consider a variety of factors, including the company's financial health, market conditions, and industry trends.
