Dillard’s Inc. (NYSE:DDS) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday.

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. Estimates have witnessed a negative trend ahead of the third quarter results.”

Several other research analysts also recently weighed in on the stock. Credit Suisse Group AG upgraded shares of Dillard’s from a “neutral” rating to an “outperform” rating and upped their price target for the stock from $63.00 to $70.00 in a research report on Wednesday, September 28th. Bank of America Corp. restated a “sell” rating and set a $55.00 price target on shares of Dillard’s in a research report on Friday, August 12th. Finally, Telsey Advisory Group upped their price target on shares of Dillard’s from $62.00 to $65.00 and gave the stock a “market perform” rating in a research report on Friday, August 12th. Four equities research analysts have rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the stock. Dillard’s currently has a consensus rating of “Hold” and a consensus target price of $66.39.

Analyst Recommendations for Dillard`s (NYSE:DDS)

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Shares of Dillard’s (NYSE:DDS) traded up 1.21% on Tuesday, hitting $58.60. The company’s stock had a trading volume of 259,693 shares. The firm has a market cap of $2.01 billion, a price-to-earnings ratio of 9.68 and a beta of 1.18. The stock has a 50-day moving average price of $60.76 and a 200 day moving average price of $63.91. Dillard’s has a one year low of $54.37 and a one year high of $94.12.

Dillard’s (NYSE:DDS) last released its quarterly earnings results on Thursday, August 11th. The company reported $0.35 earnings per share for the quarter, topping the 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 earned $1.45 billion during the quarter, compared to the consensus estimate of $1.48 billion. During the same quarter in the prior year, the firm earned $0.75 EPS. The company’s revenue for the quarter was down 4.1% on a year-over-year basis. Equities research analysts predict that Dillard’s will post $5.88 EPS for the current year.

The company 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 of this dividend is Wednesday, September 28th. This represents a $0.28 annualized dividend and a dividend yield of 0.48%. Dillard’s’s dividend payout ratio (DPR) is 4.65%.

Hedge funds have recently bought and sold shares of the stock. Public Employees Retirement System of Ohio boosted its stake in Dillard’s by 1.1% in the second quarter. Public Employees Retirement System of Ohio now owns 4,053 shares of the company’s stock valued at $246,000 after buying an additional 45 shares during the period. O Shaughnessy Asset Management LLC boosted its stake in Dillard’s by 2.0% in the second quarter. O Shaughnessy Asset Management LLC now owns 10,080 shares of the company’s stock valued at $611,000 after buying an additional 198 shares during the period. BNP Paribas Arbitrage SA boosted its stake in Dillard’s by 5.6% in the second quarter. BNP Paribas Arbitrage SA now owns 3,926 shares of the company’s stock valued at $238,000 after buying an additional 207 shares during the period. Suntrust Banks Inc. boosted its stake in Dillard’s by 5.7% in the second quarter. Suntrust Banks Inc. now owns 4,079 shares of the company’s stock valued at $246,000 after buying an additional 221 shares during the period. Finally, BlackRock Advisors LLC boosted its stake in Dillard’s by 3.2% in the second quarter. BlackRock Advisors LLC now owns 10,918 shares of the company’s stock valued at $662,000 after buying an additional 334 shares during the period. 78.92% of the stock is owned by institutional investors and hedge funds.

Dillard’s Company Profile

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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