Dollar General (DG) Lifted to Strong-Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Dollar General (NYSE:DG) from a hold rating to a strong-buy rating in a research report released on Tuesday morning. The firm currently has $110.00 price objective on the stock.
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 a year. 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. On the other hand, estimates have been going up ahead of the company’s fourth-quarter earnings release.”
A number of other research firms also recently commented on DG. Oppenheimer started coverage on Dollar General in a report on Wednesday, January 17th. They issued an outperform rating and a $112.00 price objective on the stock. UBS Group reiterated a buy rating and issued a $99.00 price objective (up previously from $85.00) on shares of Dollar General in a report on Monday, December 4th. Moffett Nathanson started coverage on Dollar General in a report on Monday, December 4th. They issued a neutral rating on the stock. Deutsche Bank increased their price objective on Dollar General to $97.00 and gave the company a buy rating in a report on Thursday, December 7th. Finally, Wolfe Research upgraded Dollar General from an underperform rating to an outperform rating in a research note on Wednesday, December 20th. One equities research analyst has rated the stock with a sell rating, eleven have given a hold rating, eighteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. The stock has a consensus rating of Buy and an average target price of $91.98.
Dollar General (NYSE:DG) last released its quarterly earnings data on Thursday, December 7th. The company reported $0.93 EPS for the quarter, missing analysts’ consensus estimates of $0.94 by ($0.01). Dollar General had a net margin of 5.31% and a return on equity of 22.58%. The business had revenue of $5.90 billion during the quarter, compared to analysts’ expectations of $5.80 billion. During the same quarter in the previous year, the company posted $0.89 EPS. The company’s revenue was up 11.0% compared to the same quarter last year. sell-side analysts forecast that Dollar General will post 4.5 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, January 23rd. Shareholders of record on Tuesday, January 9th were given a dividend of $0.26 per share. The ex-dividend date was Monday, January 8th. This represents a $1.04 dividend on an annualized basis and a yield of 1.06%. Dollar General’s payout ratio is 23.06%.
In other Dollar General news, EVP Robert D. Ravener sold 11,368 shares of the stock in a transaction that occurred on Tuesday, December 12th. The stock was sold at an average price of $92.81, for a total transaction of $1,055,064.08. Following the completion of the sale, the executive vice president now directly owns 22,598 shares of the company’s stock, valued at approximately $2,097,320.38. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Anita C. Elliott sold 2,012 shares of the stock in a transaction that occurred on Monday, December 18th. The stock was sold at an average price of $92.82, for a total value of $186,753.84. Following the sale, the senior vice president now directly owns 14,969 shares of the company’s stock, valued at $1,389,422.58. The disclosure for this sale can be found here. Insiders have sold a total of 20,916 shares of company stock valued at $1,924,881 over the last ninety days. 0.22% of the stock is owned by insiders.
Institutional investors have recently bought and sold shares of the business. Norinchukin Bank The lifted its holdings in shares of Dollar General by 7.4% in the 4th quarter. Norinchukin Bank The now owns 20,829 shares of the company’s stock valued at $1,937,000 after buying an additional 1,439 shares during the period. American International Group Inc. lifted its holdings in shares of Dollar General by 13.9% in the 4th quarter. American International Group Inc. now owns 88,439 shares of the company’s stock valued at $8,226,000 after buying an additional 10,766 shares during the period. Arrowstreet Capital Limited Partnership acquired a new stake in shares of Dollar General in the 4th quarter valued at approximately $28,182,000. Wedbush Securities Inc. acquired a new stake in shares of Dollar General in the 4th quarter valued at approximately $237,000. Finally, Trustcore Financial Services LLC acquired a new stake in shares of Dollar General in the 4th quarter valued at approximately $694,000. 90.29% of the stock is owned by institutional investors.
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About Dollar General
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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