Dillard’s, Inc. (DDS) Cut to Strong Sell at Zacks Investment Research
Zacks Investment Research cut shares of Dillard’s, Inc. (NYSE:DDS) from a hold rating to a strong sell rating in a research note published on Tuesday.
According to Zacks, “Dillard’s has underperformed the industry in the past month due to its dismal earnings trend. The company has missed bottom line estimates in six out of the last eight quarters due to the challenging trends in the apparel retail space arising out of the changing preference of customers from offline to online. This dismal trend lingered into second-quarter fiscal 2017 as well, wherein both the top and bottom line fell year over year. Well, persistence of these trends along with stiff industry competition remain threats. However, we are encouraged by its constant efforts to capitalize on growth opportunities in its brick-and-mortar stores and e-commerce business. Further, Dillard’s focus on increasing productivity, enhancing domestic operations and developing an omni-channel platform should strengthen customer base. Moreover, the company’s constant shareholder-friendly moves are noteworthy. Estimates have been stable lately.”
Several other analysts have also recently weighed in on the stock. ValuEngine raised shares of Dillard’s from a hold rating to a buy rating in a research note on Friday, September 1st. BidaskClub cut shares of Dillard’s from a buy rating to a hold rating in a research note on Friday, August 18th. J P Morgan Chase & Co reissued an underweight rating and issued a $36.00 price target (down previously from $49.00) on shares of Dillard’s in a research note on Thursday, August 10th. TheStreet raised shares of Dillard’s from a c rating to a b- rating in a research note on Tuesday, August 8th. Finally, Deutsche Bank AG increased their price target on shares of Dillard’s from $39.00 to $42.00 and gave the company a sell rating in a research note on Tuesday, August 8th. Three investment analysts have rated the stock with a sell rating, three have assigned a hold rating and two have given a buy rating to the company. The company has an average rating of Hold and a consensus price target of $52.60.
Shares of Dillard’s (NYSE DDS) opened at 51.84 on Tuesday. The company has a market cap of $1.50 billion, a P/E ratio of 12.84 and a beta of 1.12. The firm has a 50-day moving average of $56.95 and a 200 day moving average of $56.73. Dillard’s has a 52 week low of $45.51 and a 52 week high of $83.44.
Dillard’s (NYSE:DDS) last posted its quarterly earnings results on Thursday, August 10th. The company reported ($0.58) earnings per share for the quarter, missing the consensus estimate of $0.19 by ($0.77). Dillard’s had a net margin of 2.04% and a return on equity of 7.89%. The firm had revenue of $1.43 billion during the quarter, compared to analysts’ expectations of $1.44 billion. During the same period last year, the company earned $0.35 EPS. The business’s quarterly revenue was down 1.7% on a year-over-year basis. Equities analysts expect that Dillard’s will post $3.57 EPS for the current fiscal year.
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The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 30th. Stockholders of record on Friday, September 29th will be issued a $0.10 dividend. This is a positive change from Dillard’s’s previous quarterly dividend of $0.07. This represents a $0.40 annualized dividend and a dividend yield of 0.77%. The ex-dividend date is Thursday, September 28th. Dillard’s’s dividend payout ratio is currently 10.18%.
In other news, Director J C. Watts, Jr. sold 450 shares of the company’s stock in a transaction that occurred on Wednesday, September 13th. The shares were sold at an average price of $60.30, for a total value of $27,135.00. Following the transaction, the director now directly owns 8,200 shares in the company, valued at approximately $494,460. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 23.27% of the company’s stock.
Hedge funds have recently modified their holdings of the company. QS Investors LLC lifted its holdings in shares of Dillard’s by 0.7% in the 2nd quarter. QS Investors LLC now owns 1,798 shares of the company’s stock worth $104,000 after acquiring an additional 12 shares during the last quarter. LS Investment Advisors LLC lifted its holdings in shares of Dillard’s by 16.4% in the 2nd quarter. LS Investment Advisors LLC now owns 1,995 shares of the company’s stock worth $115,000 after acquiring an additional 281 shares during the last quarter. Victory Capital Management Inc. lifted its holdings in shares of Dillard’s by 17.6% in the 2nd quarter. Victory Capital Management Inc. now owns 2,168 shares of the company’s stock worth $125,000 after acquiring an additional 325 shares during the last quarter. Advantus Capital Management Inc acquired a new position in shares of Dillard’s in the 1st quarter worth approximately $169,000. Finally, Verity Asset Management Inc. acquired a new position in shares of Dillard’s in the 2nd quarter worth approximately $225,000. Hedge funds and other institutional investors own 94.46% of the company’s stock.
Dillard’s, Inc is a retailer of fashion apparel, cosmetics and home furnishing. As of January 28, 2017, the Company operated 293 Dillard’s stores, including 25 clearance centers, and an Internet store offering a selection of merchandise, including fashion apparel for women, men and children, accessories, cosmetics, home furnishings and other consumer goods.
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