On October 3, 2023, Melvin Martin, President, SRG of Darden Restaurants Inc (DRI, Financial), sold 2,966 shares of the company. This move is part of a trend observed over the past year, where the insider has sold a total of 8,267 shares and made no purchases.
Darden Restaurants Inc is a full-service restaurant company. The firm operates more than 1,700 restaurants where it serves over 320 million meals annually. Its brands include Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, and Eddie V's. These restaurants offer a variety of foods including steaks, seafood, chicken, and pasta, among others.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 27 insider sells 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 the insider's recent sell, shares of Darden Restaurants Inc were trading for $139.62, giving the company a market cap of $16.99 billion. The price-earnings ratio was 17.58, lower than the industry median of 23.69 and also lower than the company’s historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance, Darden Restaurants Inc is modestly undervalued. The stock's price-to-GF-Value ratio is 0.81, with a GF Value of $172.87 and a current price of $139.62.
In conclusion, the insider's recent sell-off, coupled with the company's valuation and insider trends, could be a signal to investors. However, it's important to consider all factors and conduct thorough research before making any investment decisions.
