Zacks Investment Research Upgrades Dollar General (DG) to Strong-Buy

Dollar General (NYSE:DG) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a report released on Tuesday. The firm currently has a $110.00 target price on the stock. Zacks Investment Research‘s target price would indicate a potential upside of 12.70% from the company’s current price.

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 a year. 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. On the other hand, estimates have been going up ahead of the company’s fourth-quarter earnings release.”

Other equities research analysts have also issued reports about the stock. Raymond James Financial reaffirmed a “buy” rating and issued a $107.00 price target on shares of Dollar General in a report on Sunday, December 3rd. Citigroup began coverage on shares of Dollar General in a report on Tuesday, January 16th. They issued an “outperform” rating and a $112.00 price target on the stock. BMO Capital Markets set a $102.00 price target on shares of Dollar General and gave the company a “hold” rating in a report on Friday, December 8th. KeyCorp reaffirmed a “hold” rating on shares of Dollar General in a report on Friday, November 10th. Finally, Wells Fargo & Co began coverage on shares of Dollar General in a report on Friday, November 3rd. They issued an “underperform” rating and a $72.00 price target on the stock. One research analyst has rated the stock with a sell rating, ten have issued a hold rating, seventeen have issued a buy rating and one has given a strong buy rating to the company. The stock currently has a consensus rating of “Buy” and an average price target of $91.98.

Shares of Dollar General (NYSE:DG) traded up $1.80 on Tuesday, hitting $97.60. 4,007,009 shares of the stock were exchanged, compared to its average volume of 2,333,252. The stock has a market capitalization of $27,004.28, a price-to-earnings ratio of 21.59, a PEG ratio of 1.65 and a beta of 1.00. The company has a quick ratio of 0.19, a current ratio of 1.41 and a debt-to-equity ratio of 0.47. Dollar General has a 12-month low of $65.97 and a 12-month high of $105.82.

Dollar General (NYSE:DG) last announced its quarterly earnings data on Thursday, December 7th. The company reported $0.93 earnings per share for the quarter, missing analysts’ consensus estimates of $0.94 by ($0.01). The company had revenue of $5.90 billion for the quarter, compared to analysts’ expectations of $5.80 billion. Dollar General had a net margin of 5.31% and a return on equity of 22.58%. Dollar General’s quarterly revenue was up 11.0% compared to the same quarter last year. During the same period last year, the firm earned $0.89 earnings per share. equities research analysts forecast that Dollar General will post 4.5 EPS for the current fiscal year.

In related news, SVP Michael J. Kindy sold 7,536 shares of the company’s stock in a transaction dated Thursday, December 14th. The shares were sold at an average price of $90.64, for a total transaction of $683,063.04. Following the completion of the transaction, the senior vice president now owns 7,578 shares in the company, valued at approximately $686,869.92. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, SVP Anita C. Elliott sold 2,012 shares of the company’s stock in a transaction dated Monday, December 18th. The stock was sold at an average price of $92.82, for a total transaction of $186,753.84. Following the transaction, the senior vice president now owns 14,969 shares of the company’s stock, valued at approximately $1,389,422.58. The disclosure for this sale can be found here. Over the last three months, insiders have sold 20,916 shares of company stock worth $1,924,881. Corporate insiders own 0.32% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. National Asset Management Inc. raised its position in shares of Dollar General by 4.7% during the 2nd quarter. National Asset Management Inc. now owns 3,428 shares of the company’s stock worth $250,000 after purchasing an additional 155 shares during the last quarter. SPC Financial Inc. raised its position in shares of Dollar General by 4.7% during the 4th quarter. SPC Financial Inc. now owns 11,385 shares of the company’s stock worth $1,059,000 after purchasing an additional 510 shares during the last quarter. Sentry Investment Management LLC raised its position in shares of Dollar General by 3.2% during the 2nd quarter. Sentry Investment Management LLC now owns 17,640 shares of the company’s stock worth $1,272,000 after purchasing an additional 555 shares during the last quarter. Horrell Capital Management Inc. raised its position in shares of Dollar General by 2.0% during the 4th quarter. Horrell Capital Management Inc. now owns 28,641 shares of the company’s stock worth $2,664,000 after purchasing an additional 571 shares during the last quarter. Finally, Bessemer Group Inc. raised its position in shares of Dollar General by 3.8% during the 3rd quarter. Bessemer Group Inc. now owns 16,744 shares of the company’s stock worth $1,358,000 after purchasing an additional 616 shares during the last quarter. Hedge funds and other institutional investors own 90.29% 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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