Dillard's, Inc. (TXSE:DDS) Stock Now Rated "Reduce" by Wall Street Analysts

Key Points

• Analysts are cautious on Dillard’s: Five firms give the stock an average “Reduce” rating—two sells and three holds—with an average 1-year price target of $545.67.
• Dillard’s reported quarterly EPS of $6.25, beating the $4.29 consensus estimate, while revenue of $1.53 billion slightly exceeded forecasts.
• The company paid a quarterly dividend of $0.30 per share, equivalent to $1.20 annually and a 0.2% yield.

Shares of Dillard's, Inc. (TXSE:DDS - Get Free Report) have received an average rating of "Reduce" from the five ratings firms that are covering the company, Marketbeat reports. Two analysts have rated the stock with a sell rating and three have given a hold rating to the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $545.67.

DDS has been the subject of several research reports. Wall Street Zen cut Dillard's from a "buy" rating to a "hold" rating in a research note on Saturday, September 12th. JPMorgan Chase & Co. upped their price objective on Dillard's from $496.00 to $519.00 and gave the company an "underweight" rating in a research report on Monday, August 17th. UBS Group upped their price objective on Dillard's from $465.00 to $468.00 and gave the stock a "sell" rating in a research report on Monday, August 17th. Zacks Research downgraded shares of Dillard's from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 27th. Finally, Weiss Ratings downgraded Dillard's from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, September 8th.

Dillard's Trading Down 3.2%

TXSE DDS opened at $602.38 on Friday. The stock's 50-day moving average is $651.73 and its 200-day moving average is $605.90. The firm has a market cap of $9.41 billion, a P/E ratio of 13.80 and a beta of 1.00. Dillard's has a one year low of $503.06 and a one year high of $741.97. The company has a debt-to-equity ratio of 0.16, a current ratio of 3.03 and a quick ratio of 1.58.

Dillard's (TXSE:DDS - Get Free Report) last posted its quarterly earnings results on Thursday, August 13th. The company reported $6.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.29 by $1.96. The company had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.52 billion. Dillard's had a net margin of 10.48% and a return on equity of 31.88%. Sell-side analysts anticipate that Dillard's will post 35.50 earnings per share for the current fiscal year.

Dillard's Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, November 2nd. Investors of record on Wednesday, September 30th were issued a dividend of $0.30 per share. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.2%. Dillard's's dividend payout ratio (DPR) is currently 2.75%.

Institutional Investors Weigh In On Dillard's

Institutional investors and hedge funds have recently modified their holdings of the company. Eurizon Capital SGR S.p.A. purchased a new position in Dillard's in the 3rd quarter worth $26,000. Alpine Bank Wealth Management acquired a new position in shares of Dillard's during the third quarter valued at $31,000. Rockefeller Capital Management L.P. increased its holdings in shares of Dillard's by 108.7% during the 4th quarter. Rockefeller Capital Management L.P. now owns 48 shares of the company's stock worth $29,000 after purchasing an additional 25 shares during the period. Nykredit A S bought a new stake in shares of Dillard's in the second quarter valued at about $26,000. Finally, Root Financial Partners LLC bought a new position in shares of Dillard's in the 3rd quarter valued at $41,000. 67.15% of the stock is owned by institutional investors.

Dillard's Company Profile

Dillard’s, Inc is an American department store company that sells a broad selection of fashion apparel, accessories, cosmetics, footwear, and home furnishings. Its merchandise is offered through department stores and its e-commerce platform, serving customers seeking national and private-label brands across a range of product categories.

The company was founded in 1938 by William T. Dillard and is headquartered in Little Rock, Arkansas. Over time, Dillard’s expanded through the acquisition and development of department stores, establishing a strong presence in the Southern, Southwestern, and Midwestern United States.

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