Zacks Investment Research Lowers Dollar General (DG) to Hold
Dollar General (NYSE:DG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Monday.
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.”
Other research analysts have also recently issued research reports about the company. BidaskClub raised Dollar General from a “hold” rating to a “buy” rating in a research note on Friday, August 25th. Bank of America reissued a “buy” rating and issued a $90.00 target price on shares of Dollar General in a research note on Friday, August 25th. Citigroup increased their target price on Dollar General from $87.00 to $90.00 and gave the company a “buy” rating in a research note on Wednesday, September 13th. Royal Bank Of Canada reissued a “buy” rating and issued a $85.00 target price on shares of Dollar General in a research note on Tuesday, October 10th. Finally, Piper Jaffray Companies restated a “buy” rating and set a $85.00 price target on shares of Dollar General in a research report on Friday, September 29th. Two analysts have rated the stock with a sell rating, twelve have issued a hold rating and thirteen have issued a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus price target of $85.54.
Dollar General (NYSE:DG) last released its earnings results on Thursday, December 7th. The company reported $0.93 EPS for the quarter, missing the Zacks’ consensus estimate of $0.94 by ($0.01). The firm had revenue of $5.90 billion during the quarter, compared to the consensus estimate of $5.80 billion. Dollar General had a net margin of 5.31% and a return on equity of 22.58%. The firm’s revenue was up 11.0% compared to the same quarter last year. During the same period in the prior year, the company earned $0.89 EPS. equities research analysts predict that Dollar General will post 4.49 EPS for the current year.
In other news, EVP Robert D. Ravener sold 11,257 shares of the stock in a transaction dated Tuesday, September 12th. The shares were sold at an average price of $77.00, for a total transaction of $866,789.00. Following the completion of the sale, the executive vice president now directly owns 22,598 shares in the company, valued at $1,740,046. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 0.32% of the company’s stock.
Institutional investors have recently bought and sold shares of the company. Sun Life Financial INC boosted its holdings in shares of Dollar General by 18,170.0% during the second quarter. Sun Life Financial INC now owns 1,827 shares of the company’s stock worth $132,000 after purchasing an additional 1,817 shares during the period. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Dollar General by 2.4% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,034 shares of the company’s stock worth $146,000 after purchasing an additional 48 shares during the period. Welch Group LLC raised its stake in Dollar General by 27.1% in the second quarter. Welch Group LLC now owns 2,267 shares of the company’s stock worth $163,000 after buying an additional 483 shares in the last quarter. Meeder Asset Management Inc. raised its stake in Dollar General by 22,950.0% in the third quarter. Meeder Asset Management Inc. now owns 2,305 shares of the company’s stock worth $187,000 after buying an additional 2,295 shares in the last quarter. Finally, Fieldpoint Private Securities LLC bought a new position in Dollar General in the third quarter worth about $195,000. Institutional investors own 89.90% of the company’s stock.
TRADEMARK VIOLATION WARNING: “Zacks Investment Research Lowers Dollar General (DG) to Hold” was first published by American Banking News and is the sole property of of American Banking News. If you are reading this news story on another publication, it was copied illegally and reposted in violation of United States & international copyright and trademark laws. The legal version of this news story can be viewed at https://www.americanbankingnews.com/2017/12/11/zacks-investment-research-lowers-dollar-general-dg-to-hold.html.
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Dollar General Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dollar General Corp. and related companies with MarketBeat.com's FREE daily email newsletter.