Juliana Chugg, a director at Darden Restaurants (DRI), recently added 1,925 shares. The buy represents an initial stake at the company for the director, and came to a total cost of just over $248,000.
This represents the first insider buy at the company since a cluster of 12 buys back in April 2020. Over the past two years, company insiders, including both executives and directors, have been consistent sellers of shares instead.
Overall, company insiders own just 0.4 percent of shares.
Shares of the restaurant chain are down nearly 10 percent over the past year. That’s in spite of earnings soaring by 92 percent and revenue rising by 41 percent.
The combination of rising operational performance and a declining share price brings the stock to about 15 times earnings, the company’s best valuation in years.
Action to take: As the owner of a number of branded restaurants sporting moderately-priced fare, Darden looks attractive. Investors in particular may like the 3.4 percent dividend yield being served up at today’s prices, especially as that yield has a history of being increased.
For traders, shares have been on the rebound since early March and are trending higher. The July $145 calls, last going for about $3.80, offer mid-to-high double-digit return potential in the coming months before expiration if the current rally continues.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.