Argus Forecasts Strong Price Appreciation for Dollar General (NYSE:DG) Stock

Key Points

• Argus raised Dollar General’s price target from $165 to $170 and maintained a “buy” rating, implying approximately 29.5% upside from the prior close.
• Analyst sentiment remains mixed: 10 analysts rate the stock a buy, 18 a hold and one a sell, producing a consensus “hold” rating and an average target price of $135.35.
• Dollar General exceeded quarterly expectations, reporting $2.48 in earnings per share versus the $2.01 consensus and $11.29 billion in revenue, up 5.2% year over year. Institutional investors own 91.77% of the company’s shares.

Dollar General (NYSE:DG - Get Free Report) had its price target raised by equities researchers at Argus from $165.00 to $170.00 in a research report issued on Friday, Benzinga reports. The firm presently has a "buy" rating on the stock. Argus' target price indicates a potential upside of 29.54% from the company's previous close.

A number of other brokerages have also commented on DG. Piper Sandler boosted their price objective on shares of Dollar General from $118.00 to $123.00 and gave the stock a "neutral" rating in a research report on Friday, August 28th. Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $160.00 target price on shares of Dollar General in a research report on Friday, August 28th. Deutsche Bank Aktiengesellschaft upped their price objective on Dollar General from $110.00 to $114.00 and gave the stock a "hold" rating in a research note on Thursday, June 4th. Wall Street Zen upgraded shares of Dollar General from a "hold" rating to a "buy" rating in a research note on Saturday, August 29th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Dollar General in a research note on Wednesday, July 8th. Ten research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Dollar General has a consensus rating of "Hold" and a consensus target price of $135.35.

Dollar General Price Performance

Shares of DG opened at $131.23 on Friday. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.31 and a current ratio of 1.21. Dollar General has a 52-week low of $95.11 and a 52-week high of $158.23. The stock has a 50 day simple moving average of $122.54 and a 200 day simple moving average of $122.46. The firm has a market capitalization of $28.95 billion, a PE ratio of 17.07, a P/E/G ratio of 1.79 and a beta of 0.23.

Dollar General (NYSE:DG - Get Free Report) last issued its quarterly earnings data on Thursday, August 27th. The company reported $2.48 EPS for the quarter, topping analysts' consensus estimates of $2.01 by $0.47. The business had revenue of $11.29 billion for the quarter, compared to analyst estimates of $11.20 billion. Dollar General had a net margin of 3.90% and a return on equity of 18.93%. The firm's quarterly revenue was up 5.2% on a year-over-year basis. During the same period last year, the business posted $1.86 earnings per share. Dollar General has set its FY 2026 guidance at 7.800-8.000 EPS. Sell-side analysts predict that Dollar General will post 7.68 EPS for the current fiscal year.

Hedge Funds Weigh In On Dollar General

A number of hedge funds have recently added to or reduced their stakes in the stock. Geode Capital Management LLC increased its stake in shares of Dollar General by 0.8% in the fourth quarter. Geode Capital Management LLC now owns 5,707,809 shares of the company's stock valued at $754,857,000 after buying an additional 42,936 shares during the period. Norges Bank bought a new stake in Dollar General in the fourth quarter valued at approximately $133,431,000. KBC Group NV boosted its holdings in Dollar General by 63.8% in the first quarter. KBC Group NV now owns 60,896 shares of the company's stock valued at $7,230,000 after acquiring an additional 23,710 shares during the last quarter. Pinebridge Investments LLC acquired a new stake in Dollar General during the 4th quarter valued at approximately $11,864,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Dollar General in the 2nd quarter worth approximately $162,412,000. Institutional investors own 91.77% of the company's stock.

About Dollar General

Dollar General Corporation is a U.S.-based variety and discount retailer operating a large network of small-format stores that serve primarily rural and suburban communities. The company is publicly traded on the New York Stock Exchange under the ticker DG and is headquartered in the Nashville/Goodlettsville, Tennessee area. Founded in 1939, Dollar General has grown from a regional operation into one of the nation's prominent low-price retailers focused on convenience and value.

Dollar General's stores offer a wide assortment of everyday consumables and household goods, including food and beverage items, cleaning supplies, health and beauty products, paper goods, apparel basics, seasonal merchandise and small household items.

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