Synergy Resources Corp (SYRG) and Two Other Companies with Fresh Insider Selling

Darden Board Member Offloads Some Shares

Darden Restaurants Inc. (NYSE:DRI) also saw a member of its Board of Directors offload some shares earlier this week. Director Alan N. Stillman discarded 2,000 units of common stock on Tuesday for $63.5 each. Following this small-sized sale, Mr. Stillman currently owns 3,100 shares. It should be noted that Jeffrey Smith of Starboard Value LP, who managed to replace the entire Board of the owner of full-service dining restaurants in 2014, has also been gradually trimming his firm’s ownership in Darden Restaurants in the past several months. This suggests that the owner Olive Garden and LongHorn Steakhouse restaurants might have reached a rather fair valuation, after implementing efficient cost-cutting measures and spinning-off six 424 restaurant properties into real estate investment trust Four Corners Property Trust Inc. (NYSE:FCPT). Shares of Darden Restaurants have climbed 31% in the past two years, but are down 2% in the past year.

Darden Restaurants reported sales of $5.14 billion for the nine months that ended February 28, which increased from $4.89 billion reported for the same period of the prior year. The increase in the company’s top-line figure was mainly attributable to same-restaurant sales growth of 3.8%, as well as revenue from 7 net new company-owned restaurant since the third quarter of fiscal 2015. Meanwhile, net earnings from continuing operations were $219.3 million for the first three quarters of fiscal 2016, which increased from a mere $78.3 million reported a year ago. Diluted net earnings per share from continuing operations increased to $1.69 from $0.60. What’s more, the company’s Darden same-restaurant sales in fiscal 2016 are expected to grow in the range of 3.0%-to-3.5%. Much of the recent growth experienced by Darden Restaurants has been driven by the strong performance of Italian dining chain Olive Garden.

Shares of Darden currently change hands at around 16.3-times expected earnings, below the forward P/E multiple of 25.1 for the restaurants sector. A total number of 32 money managers tracked by Insider Monkey had stakes in the company at the end of December, amassing nearly 16% of its outstanding common stock. Cliff Asness’ AQR Capital Management owns 3.49 million shares of Darden Restaurants Inc. (NYSE:DRI) as of the end of the final quarter of 2015.

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