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.
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