Dillard’s (NYSE:DDS) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued on Tuesday.

According to Zacks, “Dillard’s lagged the industry in the past month as earnings missed estimates and declined year over year in third-quarter fiscal 2018. This marked an earnings miss after four straight quarterly beats. Results were mainly hurt by higher markdowns, particularly in the first month, which significantly weighed on margins. Consolidated gross margin reflected greater decline than gross margin for retail operations as volume for the lower-margin CDI business improved. Meanwhile, gross margin for retail operations were hurt by increased markdowns. However, the company delivered top line beat for the sixth consecutive quarter backed by solid comps growth and strong performance across most categories. Further, the company’s efforts to capitalize on growth opportunities in physical stores and e-commerce bode well. Its focus on boosting productivity, enhancing domestic operations and developing omni-channel should strengthen customer base.”

A number of other brokerages have also weighed in on DDS. ValuEngine lowered shares of Dillard’s from a “buy” rating to a “hold” rating in a research report on Friday, August 17th. Deutsche Bank cut their target price on shares of Dillard’s from $66.00 to $55.00 and set a “sell” rating for the company in a research report on Friday. Wedbush lowered shares of Dillard’s from an “outperform” rating to a “neutral” rating and cut their target price for the stock from $95.00 to $70.00 in a research report on Tuesday, October 30th. They noted that the move was a valuation call. Telsey Advisory Group cut their target price on shares of Dillard’s from $83.00 to $65.00 and set a “market perform” rating for the company in a research report on Friday. Finally, JPMorgan Chase & Co. increased their target price on shares of Dillard’s to $60.00 and gave the stock an “underweight” rating in a research report on Thursday, August 16th. Five equities research analysts have rated the stock with a sell rating and three have issued a hold rating to the stock. The company presently has a consensus rating of “Sell” and a consensus target price of $64.86.

DDS opened at $66.91 on Tuesday. The stock has a market cap of $1.77 billion, a P/E ratio of 13.94, a P/E/G ratio of 1.12 and a beta of 0.87. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.49 and a quick ratio of 0.16. Dillard’s has a fifty-two week low of $52.20 and a fifty-two week high of $98.75.

Dillard’s (NYSE:DDS) last posted its quarterly earnings results on Thursday, November 15th. The company reported $0.16 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.56 by ($0.40). The company had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.38 billion. Dillard’s had a net margin of 3.70% and a return on equity of 9.88%. During the same quarter in the previous year, the company posted $0.41 EPS. Analysts predict that Dillard’s will post 5.86 earnings per share for the current year.

In other news, Director Robert C. Connor purchased 1,000 shares of the stock in a transaction dated Friday, August 24th. The shares were purchased at an average cost of $75.42 per share, with a total value of $75,420.00. Following the completion of the acquisition, the director now owns 68,000 shares in the company, valued at approximately $5,128,560. The transaction was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 19.10% of the company’s stock.

Institutional investors have recently made changes to their positions in the company. PNC Financial Services Group Inc. lifted its holdings in shares of Dillard’s by 60.3% in the second quarter. PNC Financial Services Group Inc. now owns 6,771 shares of the company’s stock worth $639,000 after buying an additional 2,547 shares in the last quarter. Sei Investments Co. raised its stake in Dillard’s by 22.7% in the second quarter. Sei Investments Co. now owns 21,656 shares of the company’s stock valued at $2,047,000 after purchasing an additional 4,003 shares in the last quarter. CSat Investment Advisory L.P. purchased a new stake in Dillard’s in the second quarter valued at approximately $361,000. Vident Investment Advisory LLC raised its stake in Dillard’s by 1.5% in the second quarter. Vident Investment Advisory LLC now owns 51,160 shares of the company’s stock valued at $4,835,000 after purchasing an additional 765 shares in the last quarter. Finally, NumerixS Investment Technologies Inc purchased a new stake in Dillard’s in the second quarter valued at approximately $126,000. 87.03% of the stock is currently owned by hedge funds and other institutional investors.

Dillard’s Company Profile

Dillard's, Inc operates retail department stores primarily in the Southeastern, Southwestern, and Midwestern areas of the United States. The company's stores offer a selection of merchandise, including fashion apparel for women, men, and children; accessories; cosmetics; home furnishings; and other consumer goods.

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Analyst Recommendations for Dillard`s (NYSE:DDS)

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