Zacks Investment Research Lowers Dollar General Corporation (DG) to Hold
Zacks Investment Research downgraded shares of Dollar General Corporation (NYSE:DG) from a buy rating to a hold rating in a research report sent to investors on Tuesday morning.
According to Zacks, “Dollar General remains committed toward better price management, merchandise initiatives and cost containment. The company’s recent deal to acquire 322 stores from a small multi-price point retailer is also encouraging. We believe that the company’s strategic endeavors have helped it to deliver better-than-expected results for the second straight quarter, as it posted first-quarter fiscal 2017 financial numbers. Upbeat performance and the news of recent store buyout deal, prompted management to raise its sales outlook. As a result the stock has outperformed the industry in the past six months. Meanwhile, Trump’s suggestion of reducing food stamps program by $193 billion, which is nearly 25% of the budget for the program, will have a detrimental effect. Cut in SNAP benefit will hamper the company’s performance as people with low income will have less money to spend and could restrict their spending to low margin products.”
Several other analysts have also weighed in on DG. Sanford C. Bernstein reissued an outperform rating and set a $88.00 price objective on shares of Dollar General Corporation in a report on Wednesday, May 17th. BidaskClub raised Dollar General Corporation from a strong sell rating to a sell rating in a report on Monday, July 24th. Deutsche Bank AG reissued a hold rating and set a $79.00 price objective (up previously from $78.00) on shares of Dollar General Corporation in a report on Saturday, June 3rd. Gordon Haskett initiated coverage on Dollar General Corporation in a report on Tuesday, May 9th. They set a reduce rating and a $67.00 price objective on the stock. Finally, BMO Capital Markets reissued a neutral rating and set a $85.00 price objective (up previously from $76.00) on shares of Dollar General Corporation in a report on Friday, June 2nd. Two analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and eleven have issued a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average target price of $80.84.
Dollar General Corporation (NYSE:DG) opened at 72.54 on Tuesday. The stock’s 50 day moving average price is $74.57 and its 200 day moving average price is $72.84. Dollar General Corporation has a 1-year low of $65.97 and a 1-year high of $80.67. The stock has a market capitalization of $19.89 billion, a PE ratio of 16.40 and a beta of 0.94.
Dollar General Corporation (NYSE:DG) last issued its quarterly earnings results on Thursday, August 31st. The company reported $1.10 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.09 by $0.01. The company had revenue of $5.83 billion for the quarter, compared to the consensus estimate of $5.80 billion. Dollar General Corporation had a return on equity of 22.67% and a net margin of 5.38%. The company’s revenue for the quarter was up 8.1% on a year-over-year basis. During the same period in the previous year, the business posted $1.08 EPS. Equities research analysts forecast that Dollar General Corporation will post $4.51 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 24th. Shareholders of record on Tuesday, October 10th will be paid a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 1.43%. The ex-dividend date of this dividend is Friday, October 6th. Dollar General Corporation’s dividend payout ratio is currently 23.48%.
Institutional investors have recently bought and sold shares of the company. Sun Life Financial INC raised its position in Dollar General Corporation by 18,170.0% in the second quarter. Sun Life Financial INC now owns 1,827 shares of the company’s stock worth $132,000 after buying an additional 1,817 shares in the last quarter. Alpha Windward LLC increased its stake in Dollar General Corporation by 3.0% in the second quarter. Alpha Windward LLC now owns 1,900 shares of the company’s stock worth $137,000 after buying an additional 56 shares during the last quarter. Huntington National Bank increased its stake in Dollar General Corporation by 4.0% in the second quarter. Huntington National Bank now owns 1,965 shares of the company’s stock worth $142,000 after buying an additional 75 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in Dollar General Corporation by 2.4% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,034 shares of the company’s stock worth $146,000 after buying an additional 48 shares during the last quarter. Finally, Harbour Capital Advisors LLC increased its stake in Dollar General Corporation by 7,109.3% in the second quarter. Harbour Capital Advisors LLC now owns 10,814 shares of the company’s stock worth $150,000 after buying an additional 10,664 shares during the last quarter. 90.28% of the stock is currently owned by institutional investors.
Dollar General Corporation Company Profile
Dollar General Corporation is a discount retailer. The Company offers a selection of merchandise, including consumables, seasonal, home products and apparel. The Company’s consumables category includes paper and cleaning products (such as paper towels, bath tissue, and other home cleaning supplies); packaged food (such as cereals, spices, sugar and flour); perishables (such as milk, beer and wine); snacks (such as candy, cookies, and carbonated beverages); health and beauty (such as over-the-counter medicines and personal care products); pet (pet supplies and pet food), and tobacco products.
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