Dillard’s Inc. (DDS) Upgraded to Buy by Zacks Investment Research
Zacks Investment Research upgraded shares of Dillard’s Inc. (NYSE:DDS) from a hold rating to a buy rating in a report released on Thursday morning. The brokerage currently has $73.00 price target on the stock.
According to Zacks, “Dillard’s constant efforts to capitalize on growth opportunities in its brick-and-mortar stores and eCommerce business place it well, as it is likely to help it retain existing customers and attract new ones. The company’s focus on increasing productivity, developing a leading omni-channel platform and enhancing its domestic operations is also expected to support future results. Moreover, the company’s strong financial status provides the flexibility to make shareholder-friendly moves and further business expansion. While the company’s earnings and sales topped estimates in the last reported quarter, Dillard’s fiscal 2016 outlook indicates significant cost pressures, which might hurt margins and bottom line. Soft economic recovery and stiff competition in the retail merchandise space may also prove to be hurdles.”
Other analysts have also issued reports about the stock. Telsey Advisory Group upped their target price on shares of Dillard’s from $62.00 to $65.00 and gave the stock a market perform rating in a research note on Friday, August 12th. Credit Suisse Group AG upgraded shares of Dillard’s from a neutral rating to an outperform rating and increased their price target for the company from $63.00 to $70.00 in a research note on Wednesday, September 28th. Finally, Bank of America Corp. reiterated a sell rating and issued a $55.00 price target on shares of Dillard’s in a research note on Friday, August 12th. Four analysts have rated the stock with a sell rating, two have given a hold rating and two have assigned a buy rating to the stock. The stock presently has an average rating of Hold and a consensus price target of $66.39.
Dillard’s (NYSE:DDS) traded down 0.05% during trading on Thursday, hitting $65.83. 145,276 shares of the stock were exchanged. The stock has a 50 day moving average of $61.24 and a 200-day moving average of $65.04. Dillard’s has a 52 week low of $54.37 and a 52 week high of $94.12. The stock has a market cap of $2.25 billion, a P/E ratio of 10.87 and a beta of 1.18.
Dillard’s (NYSE:DDS) last released its earnings results on Thursday, August 11th. The company reported $0.35 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.31 by $0.04. Dillard’s had a net margin of 3.31% and a return on equity of 11.74%. The firm had revenue of $1.45 billion for the quarter, compared to analyst estimates of $1.48 billion. During the same period in the prior year, the firm earned $0.75 earnings per share. The business’s quarterly revenue was down 4.1% compared to the same quarter last year. Equities analysts expect that Dillard’s will post $5.88 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Monday, October 31st. Stockholders of record on Friday, September 30th will be paid a $0.07 dividend. The ex-dividend date is Wednesday, September 28th. This represents a $0.28 annualized dividend and a dividend yield of 0.43%. Dillard’s’s payout ratio is 4.65%.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Acrospire Investment Management LLC boosted its position in Dillard’s by 120.0% in the second quarter. Acrospire Investment Management LLC now owns 2,200 shares of the company’s stock valued at $133,000 after buying an additional 1,200 shares during the last quarter. Kernodle & Katon Asset Management Group LLC boosted its position in Dillard’s by 1,669.3% in the second quarter. Kernodle & Katon Asset Management Group LLC now owns 2,477 shares of the company’s stock valued at $150,000 after buying an additional 2,337 shares during the last quarter. Pacer Advisors Inc. acquired a new position in Dillard’s during the second quarter valued at about $159,000. Mutual of America Capital Management LLC boosted its position in Dillard’s by 24.4% in the second quarter. Mutual of America Capital Management LLC now owns 3,140 shares of the company’s stock valued at $190,000 after buying an additional 615 shares during the last quarter. Finally, Teacher Retirement System of Texas boosted its position in Dillard’s by 13.6% in the second quarter. Teacher Retirement System of Texas now owns 3,197 shares of the company’s stock valued at $194,000 after buying an additional 383 shares during the last quarter. 78.96% of the stock is owned by institutional investors.
Dillard’s, Inc is a retailer of fashion apparel, cosmetics and home furnishing. The Company operates approximately 300 Dillard’s stores, including over 20 clearance centers, and an Internet store offering a range of merchandise, including fashion apparel for women, men and children, accessories, cosmetics, home furnishings and other consumer goods.
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