Dollar General (DG) Downgraded by Zacks Investment Research

Dollar General (NYSE:DG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday, December 11th.

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 research reports. BMO Capital Markets set a $102.00 price objective on shares of Dollar General and gave the company a “hold” rating in a research 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 research report on Friday, September 1st. Raymond James Financial set a $107.00 price target on shares of Dollar General and gave the company a “buy” rating in a research report on Saturday, December 9th. Royal Bank of Canada reissued a “buy” rating and issued a $85.00 price target on shares of Dollar General in a research report on Tuesday, October 10th. Finally, Citigroup lifted their price target on shares of Dollar General from $87.00 to $90.00 and gave the company a “buy” rating in a research report on Wednesday, September 13th. Two investment analysts have rated the stock with a sell rating, twelve have given a hold rating and fourteen have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average target price of $85.54.

Shares of Dollar General (NYSE DG) traded up $1.05 on Monday, hitting $94.06. 1,988,500 shares of the company’s stock traded hands, compared to its average volume of 2,840,000. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.19 and a current ratio of 1.41. The firm has a market capitalization of $25,540.00, a PE ratio of 20.86, a price-to-earnings-growth ratio of 1.83 and a beta of 0.96. Dollar General has a one year low of $65.97 and a one year high of $96.60.

Dollar General (NYSE:DG) last posted its quarterly earnings results on Thursday, December 7th. The company reported $0.93 EPS for the quarter, missing the consensus estimate of $0.94 by ($0.01). The company had revenue of $5.90 billion for the quarter, compared to analyst estimates of $5.80 billion. Dollar General had a return on equity of 22.58% and a net margin of 5.31%. The business’s revenue for the quarter was up 11.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.89 earnings per share. sell-side analysts forecast that Dollar General will post 4.48 EPS for the current year.

In related news, EVP Robert D. Ravener sold 11,368 shares of the business’s stock in a transaction that occurred on Tuesday, December 12th. The stock was sold at an average price of $92.81, for a total value of $1,055,064.08. Following the completion of the transaction, the executive vice president now directly owns 22,598 shares in the company, valued at approximately $2,097,320.38. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Anita C. Elliott sold 2,012 shares of the business’s stock in a transaction that occurred on Monday, December 18th. The shares were sold at an average price of $92.82, for a total value of $186,753.84. Following the completion of the transaction, the senior vice president now 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 sold 20,916 shares of company stock valued at $1,924,881 over the last ninety days. 0.32% of the stock is currently owned by company insiders.

Institutional investors have recently made changes to their positions in the company. Sun Life Financial INC raised its stake in Dollar General by 18,170.0% in the 2nd 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 period. Northwestern Mutual Wealth Management Co. raised its stake in Dollar General by 2.4% in the 2nd 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 period. Welch Group LLC raised its stake in Dollar General by 27.1% in the 2nd 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 period. Meeder Asset Management Inc. raised its stake in Dollar General by 22,950.0% in the 3rd 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 period. Finally, Fieldpoint Private Securities LLC bought a new stake in Dollar General in the 3rd quarter valued at $195,000. Institutional investors own 90.21% of the company’s stock.

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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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