This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Insiders Are Scooping Up

Darden Restaurants

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Another stock that insiders are scooping up here is Darden Restaurants (DRI), which owns and operates restaurants under the trade names Red Lobster, Olive Garden, LongHorn Steakhouse, Wildfish Seafood Grille and Bahama Breeze. Insiders are buying this stock into some notable weakness, since shares are off by 18.5% in the last three months.

Darden Restaurants has a market cap of $5.84 billion and an enterprise value of $8.74 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 12.89 and a forward price-to-earnings of 12. Its estimated growth rate for this year is -5.9%, and for next year it's pegged at 11.6%. This is not a cash-rich company, since the total cash position on its balance sheet is $61.40 million and its total debt is a whopping $2.93 billion.

A director just bought 11,000 shares, or about $494,000 worth of stock, at $44.91 per share.

>>5 Big Consumer Stocks to Buy on the Cheap

From a technical perspective, DRI is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending for the last month and change, with shares falling from its gap down day high near $48 to its recent low of $43.64 a share. During that move, shares of DRI have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of DRI have held above that recent low of $43.64 and its trading within range of a near-term breakout trade.

If you're bullish on DRI, then I would look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $46.07 to $46.96 a share and then once it takes out its gap down day high near $48 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 1,656,570 shares. If that breakout hits soon, then DRI will set up to re-fill some of that previous gap down zone from early December that started just above $52 a share.

4 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs