Recent trading patterns in the stock of Darden Restaurants, Inc. (NYSE:DRI) have investors on high alert. Performance is ultimately what matters to investors, and it’s worth taking a look at the data to get a sense of where DRI might be headed in the future. In the most recent quarter, institutional ownership decreased by a net of 6.5 million shares, or 5.76%.This is a bearish sign and indicates that institutions are feeling more pessimistic about the outlook for DRI overall.253 holders increased their positions, 277 decreased their positions, and 101 holders held their positions.
Among institutions that increased their positions, 61 were new positions. Among holders that decreased their positions, 52 sold out of the stock Darden Restaurants, Inc.. Insider ownership during the latest quarter decreased by a net of 718 shares, indicating that DRI’s key executives are feeling more bearish about the stock than they did three months ago. This activity represents a continuation of a theme over the past twelve months. Insider ownership during the last year has decreased by a net of 313419 shares.
Over the past year, the price of Darden Restaurants, Inc. (DRI) has increased 27.15% while the S&P 500 has increased 19.49%. During the past 20 days, DRI has decreased -5.12% while the broad market has increased 1.94%. DRI ‘s 20-day moving average currently sits above its 100-day moving average. This is a bullish signal that suggests the stock price might continue to rise. DRI’s average trading volume during the past 20 days is lower than the average volume over the past 100 days, which could be an indication that investors are feeling less certain than usual about the direction of DRI’s future price movements.
Darden Restaurants, Inc. (NYSE:DRI) has a 20-day RSI of 43.53%. According to this momentum indicator, a reading between 30 and 70 suggests the stock is not especially cheap or expensive, and not on the brink of a trend reversal. The MACD tells a different story. DRI’s 9-day MACD currently sits above the 20-day MACD, indicating that DRI’s downside momentum has increased during the last three weeks. This suggests that the trend will likely continue. DRI’s average trading volatility during the past few weeks is 19.57% higher than the average volatility over the past 100 days. This means that the stock’s daily price swings have been more extreme in recent times compared to the past.
Analysts expect Darden Restaurants, Inc. (DRI) to generate earnings per share of $4.43 in 2017. This works out to an increase of 10.20% compared to last year’s earnings. For comparison’s sake, analysts expect the S&P 500 to grow earnings by an average of 12% in 2017. The average investment rating for DRI on a scale of 1 to 5 (1 being a strong sell and 5 being a strong buy) is a 3.85 or a Hold. Three months ago, analysts assigned DRI a 3.53 rating, which implies that analysts have become more optimistic about the outlook for the stock over the next year.