Dollar General (NYSE:DG) Shares Up 6.5% Following Strong Earnings

Dollar General Corporation (NYSE:DG) shares shot up 6.5% on Friday following a better than expected earnings announcement. The company traded as high as $133.75 and last traded at $133.3770. 6,387,615 shares changed hands during trading, an increase of 77% from the average session volume of 3,600,476 shares. The stock had previously closed at $125.29.

The company reported $1.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.33. The company had revenue of $10.65 billion for the quarter, compared to analyst estimates of $10.60 billion. Dollar General had a return on equity of 18.59% and a net margin of 3.03%.The firm’s quarterly revenue was up 4.6% compared to the same quarter last year. During the same period in the prior year, the company posted $0.89 EPS. Dollar General has set its FY 2025 guidance at 6.300-6.500 EPS.

Dollar General Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, January 20th. Shareholders of record on Tuesday, January 6th will be paid a dividend of $0.59 per share. The ex-dividend date is Tuesday, January 6th. This represents a $2.36 dividend on an annualized basis and a yield of 1.8%. Dollar General’s dividend payout ratio is presently 40.76%.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. Morgan Stanley lifted their price objective on shares of Dollar General from $125.00 to $135.00 and gave the stock an “equal weight” rating in a research note on Friday. BMO Capital Markets raised their target price on Dollar General from $115.00 to $130.00 and gave the stock a “market perform” rating in a research note on Friday. Gordon Haskett raised Dollar General from an “accumulate” rating to a “buy” rating in a research report on Thursday. Guggenheim set a $140.00 price objective on Dollar General in a report on Friday. Finally, UBS Group raised their price objective on Dollar General from $135.00 to $143.00 and gave the stock a “buy” rating in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and fifteen have issued a Hold rating to the stock. According to MarketBeat.com, Dollar General presently has a consensus rating of “Hold” and a consensus target price of $125.43.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Elevation Point Wealth Partners LLC purchased a new stake in Dollar General in the 2nd quarter worth approximately $25,000. Caldwell Trust Co purchased a new stake in Dollar General during the second quarter worth $25,000. Atlantic Union Bankshares Corp acquired a new stake in Dollar General during the second quarter valued at $26,000. Root Financial Partners LLC acquired a new stake in Dollar General during the third quarter valued at $26,000. Finally, Peoples Financial Services CORP. purchased a new position in Dollar General in the third quarter valued at $35,000. 91.77% of the stock is currently owned by hedge funds and other institutional investors.

Dollar General Stock Performance

The business’s 50-day simple moving average is $103.68 and its two-hundred day simple moving average is $107.47. The company has a quick ratio of 0.27, a current ratio of 1.17 and a debt-to-equity ratio of 0.63. The firm has a market cap of $29.20 billion, a price-to-earnings ratio of 22.91, a P/E/G ratio of 3.14 and a beta of 0.27.

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.