Zacks Investment Research Lowers Dollar General (DG) to Hold
Zacks Investment Research downgraded shares of Dollar General (NYSE:DG) from a buy rating to a hold rating in a report released on Monday morning.
According to Zacks, “Dollar General’s commitment toward better price management, merchandise initiatives and cost containment has helped the stock to outpace the industry in the past six months. Strategic endeavors have helped it to deliver better-than-expected numbers for the fourth straight quarter, as it posted third-quarter fiscal 2017 results. Upbeat performance aided management to raise 2017 sales outlook. Increase in sales was driven by robust performance of consumables, seasonal and apparel categories. Moreover, rise in average transaction amount as well traffic has been driving comparable sales higher. Despite robust performance, investors’ remained concerned over cut in SNAP benefit. Trump’s suggestion of reducing food stamps program by $193 billion will have a detrimental effect. Cut in SNAP benefit will hamper performance as people with low income will have less money to spend and could restrict spending to low margin products.”
DG has been the topic of several other reports. BMO Capital Markets set a $102.00 price objective on shares of Dollar General and gave the company a hold rating in a report on Friday, December 8th. Deutsche Bank reaffirmed a hold rating and set a $79.00 price objective on shares of Dollar General in a report on Friday, September 1st. Raymond James Financial reaffirmed a buy rating and set a $107.00 price objective on shares of Dollar General in a report on Sunday, December 3rd. Royal Bank of Canada reissued a buy rating and issued a $85.00 price target on shares of Dollar General in a report on Tuesday, October 10th. Finally, Citigroup increased their price target on shares of Dollar General from $87.00 to $90.00 and gave the stock a buy rating in a report on Wednesday, September 13th. Two research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and thirteen have issued a buy rating to the stock. The stock currently has a consensus rating of Hold and a consensus target price of $85.54.
Shares of Dollar General (DG) opened at $91.64 on Monday. The company has a market cap of $24,772.03, a PE ratio of 19.83, a price-to-earnings-growth ratio of 1.80 and a beta of 0.96. Dollar General has a fifty-two week low of $65.97 and a fifty-two week high of $96.60. The company has a current ratio of 1.41, a quick ratio of 0.19 and a debt-to-equity ratio of 0.47.
Dollar General (NYSE:DG) last released its quarterly earnings data on Thursday, December 7th. The company reported $0.93 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.94 by ($0.01). The business had revenue of $5.90 billion for the quarter, compared to analysts’ expectations of $5.80 billion. Dollar General had a net margin of 5.31% and a return on equity of 22.58%. Dollar General’s revenue for the quarter was up 11.0% compared to the same quarter last year. During the same period last year, the company earned $0.89 earnings per share. equities research analysts anticipate that Dollar General will post 4.49 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 23rd. Investors of record on Tuesday, January 9th will be given a $0.26 dividend. This represents a $1.04 annualized dividend and a dividend yield of 1.13%. The ex-dividend date is Monday, January 8th. Dollar General’s dividend payout ratio (DPR) is 23.01%.
In related news, EVP Robert D. Ravener sold 11,368 shares of the company’s stock in a transaction that occurred on Tuesday, December 12th. The shares were sold at an average price of $92.81, for a total value of $1,055,064.08. Following the transaction, the executive vice president now directly owns 22,598 shares in the company, valued at $2,097,320.38. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.22% of the stock is currently owned by corporate insiders.
Several hedge funds have recently bought and sold shares of the stock. Sun Life Financial INC grew its position in Dollar General by 18,170.0% during the second quarter. Sun Life Financial INC now owns 1,827 shares of the company’s stock valued at $132,000 after acquiring an additional 1,817 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its position in Dollar General by 2.4% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,034 shares of the company’s stock valued at $146,000 after acquiring an additional 48 shares during the last quarter. Welch Group LLC grew its position in Dollar General by 27.1% during the second quarter. Welch Group LLC now owns 2,267 shares of the company’s stock valued at $163,000 after acquiring an additional 483 shares during the last quarter. Meeder Asset Management Inc. grew its position in Dollar General by 22,950.0% during the third quarter. Meeder Asset Management Inc. now owns 2,305 shares of the company’s stock valued at $187,000 after acquiring an additional 2,295 shares during the last quarter. Finally, Fieldpoint Private Securities LLC bought a new position in Dollar General during the third quarter valued at approximately $195,000. Institutional investors own 89.90% of the company’s stock.
Dollar General 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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