Dollar General (NYSE:DG) Shares Gap Up on Strong Earnings

Dollar General Co. (NYSE:DG)’s stock price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $74.85, but opened at $78.62. Dollar General shares last traded at $79.90, with a volume of 1,388,907 shares changing hands.

The company reported $1.68 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.51 by $0.17. Dollar General had a return on equity of 18.85% and a net margin of 3.33%. The company had revenue of $10.30 billion for the quarter, compared to analyst estimates of $10.26 billion. During the same quarter in the previous year, the company earned $1.83 earnings per share. The firm’s quarterly revenue was up 4.5% compared to the same quarter last year.

Dollar General Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, April 22nd. Shareholders of record on Tuesday, April 8th will be given a $0.59 dividend. This represents a $2.36 annualized dividend and a yield of 2.98%. The ex-dividend date of this dividend is Tuesday, April 8th. Dollar General’s dividend payout ratio is currently 38.88%.

Analyst Ratings Changes

Several analysts have recently issued reports on DG shares. Barclays lowered their price objective on shares of Dollar General from $102.00 to $100.00 and set an “overweight” rating for the company in a research note on Thursday, January 9th. Evercore ISI decreased their price target on shares of Dollar General from $97.00 to $95.00 and set an “in-line” rating for the company in a research note on Tuesday, December 3rd. Jefferies Financial Group dropped their price objective on shares of Dollar General from $110.00 to $90.00 and set a “buy” rating on the stock in a research report on Friday, November 15th. UBS Group reduced their price objective on shares of Dollar General from $108.00 to $95.00 and set a “buy” rating on the stock in a report on Thursday, March 6th. Finally, Bank of America lowered their target price on shares of Dollar General from $95.00 to $90.00 and set a “buy” rating for the company in a research note on Friday. One equities research analyst has rated the stock with a sell rating, fifteen have assigned a hold rating and eight have given a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $92.26.

Insider Buying and Selling

In related news, Director Michael M. Calbert sold 6,000 shares of the business’s stock in a transaction dated Tuesday, December 31st. The shares were sold at an average price of $75.27, for a total value of $451,620.00. Following the sale, the director now directly owns 120,322 shares in the company, valued at $9,056,636.94. The trade was a 4.75 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.49% of the company’s stock.

Hedge Funds Weigh In On Dollar General

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Altshuler Shaham Ltd purchased a new position in Dollar General during the fourth quarter worth $25,000. IMG Wealth Management Inc. purchased a new stake in Dollar General during the 4th quarter worth about $25,000. Wilmington Savings Fund Society FSB acquired a new position in Dollar General in the 3rd quarter valued at about $33,000. Providence First Trust Co purchased a new position in Dollar General in the 4th quarter valued at about $33,000. Finally, Ameriflex Group Inc. acquired a new stake in shares of Dollar General during the 4th quarter worth about $31,000. Institutional investors and hedge funds own 91.77% of the company’s stock.

Dollar General Trading Down 1.0 %

The business’s fifty day moving average price is $73.69 and its 200 day moving average price is $78.39. The company has a quick ratio of 0.15, a current ratio of 1.15 and a debt-to-equity ratio of 0.78. The firm has a market capitalization of $17.41 billion, a PE ratio of 13.04, a P/E/G ratio of 2.18 and a beta of 0.44.

Dollar General Company Profile

Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, disinfectants, and laundry products; packaged food comprising cereals, pasta, canned soups, fruits and vegetables, condiments, spices, sugar, and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer, and wine.