Dillard's, Inc. (NYSE:DDS) Given Consensus Rating of "Reduce" by Analysts

Key Points

• Analyst sentiment is cautious: Dillard's has a consensus rating of "Reduce" from five covering analysts, with two sell ratings and three hold ratings. The average 1-year price target is about $521.33.
• Quarterly results beat expectations: The company reported $16.04 EPS versus the $10.13 consensus estimate and revenue of $1.59 billion, also ahead of forecasts. Comparable-store sales and total retail sales each rose 3%.
• Profitability improved, but some gains may not be recurring: Gross margin increased to 45.8% and net income jumped to $250.6 million, aided by a favorable litigation settlement. Some analysts remain skeptical that the strength fully reflects underlying retail demand.

Shares of Dillard's, Inc. (NYSE:DDS - Get Free Report) have received a consensus recommendation of "Reduce" from the five analysts that are currently covering the company, MarketBeat.com 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 objective among brokerages that have covered the stock in the last year is $521.3333.

DDS has been the topic of a number of research reports. Wall Street Zen downgraded Dillard's from a "buy" rating to a "hold" rating in a report on Saturday, March 28th. Zacks Research downgraded Dillard's from a "strong-buy" rating to a "hold" rating in a report on Monday, February 23rd. Telsey Advisory Group cut their price objective on Dillard's from $700.00 to $650.00 and set a "market perform" rating on the stock in a report on Wednesday, February 25th. Weiss Ratings reiterated a "hold (c)" rating on shares of Dillard's in a report on Wednesday, January 21st. Finally, JPMorgan Chase & Co. dropped their target price on Dillard's from $524.00 to $449.00 and set an "underweight" rating on the stock in a report on Wednesday, February 25th.

Dillard's Stock Performance

Dillard's stock opened at $540.51 on Friday. The stock's 50-day moving average is $580.45 and its 200-day moving average is $619.96. The company has a market cap of $8.44 billion, a price-to-earnings ratio of 12.85 and a beta of 1.17. The company has a debt-to-equity ratio of 0.24, a current ratio of 2.65 and a quick ratio of 1.31. Dillard's has a 12 month low of $386.85 and a 12 month high of $741.97.

Dillard's (NYSE:DDS - Get Free Report) last released its quarterly earnings data on Thursday, May 14th. The company reported $16.04 EPS for the quarter, topping analysts' consensus estimates of $10.13 by $5.91. The company had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $1.55 billion. Dillard's had a return on equity of 31.89% and a net margin of 10.09%.The company's quarterly revenue was up 2.7% compared to the same quarter last year. During the same period last year, the business posted $10.39 EPS. Equities analysts anticipate that Dillard's will post 32.52 earnings per share for the current year.

Dillard's Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, May 4th. Investors of record on Tuesday, March 31st were issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 0.2%. The ex-dividend date was Tuesday, March 31st. Dillard's's dividend payout ratio (DPR) is presently 3.30%.

Dillard's News Summary

Here are the key news stories impacting Dillard's this week:

• Positive Sentiment: Q1 earnings came in well above estimates at $16.04 per share versus about $10 expected, while revenue also topped forecasts, signaling better-than-anticipated profitability and demand. Dillard's, Inc. Reports First Quarter Results
• Positive Sentiment: Comparable-store sales rose 3% and total retail sales increased 3%, showing improving traffic and stronger merchandise demand across all major categories. Dillard's Q1 Earnings & Sales Beat Estimates, Retail Sales Up 3%
• Positive Sentiment: Gross margin improved to 45.8% and net income jumped to $250.6 million, helped by a favorable litigation settlement and better operating leverage. Dillard’s Shares Rise After Earnings Beat Fueled by Litigation Settlement (DDS)
• Neutral Sentiment: Management opened a new store in Ohio and raised inventory slightly, but also noted higher operating expenses, which could temper margin gains if costs stay elevated. Dillard's, Inc. Reports First Quarter Results
• Negative Sentiment: Some analysts remain cautious, arguing the strength may be temporary because results were aided by one-time litigation gains and may not fully reflect underlying retail demand. Dillard's: Strength Is Temporary

Institutional Investors Weigh In On Dillard's

Hedge funds have recently modified their holdings of the stock. Rockefeller Capital Management L.P. raised 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 valued at $29,000 after buying an additional 25 shares during the period. Atlas Capital Advisors Inc. purchased a new stake in shares of Dillard's during the 4th quarter valued at about $29,000. Quarry LP purchased a new stake in shares of Dillard's during the 3rd quarter valued at about $33,000. Global Retirement Partners LLC raised its holdings in shares of Dillard's by 6,300.0% during the 4th quarter. Global Retirement Partners LLC now owns 64 shares of the company's stock valued at $39,000 after buying an additional 63 shares during the period. Finally, CoreCap Advisors LLC purchased a new stake in shares of Dillard's during the 3rd quarter valued at about $52,000. 67.15% of the stock is currently owned by hedge funds and other institutional investors.

About Dillard's

Dillard's, Inc NYSE: DDS, headquartered in Little Rock, Arkansas, is a U.S.-based department store chain founded by William T. Dillard in 1938. Over more than eight decades of operation, the company has grown from a single store in Nashville, Arkansas, to a prominent retailer with a national footprint. Dillard's equity is publicly traded on the New York Stock Exchange under the ticker DDS.

The company operates approximately 280 departmental stores across 29 states, offering a broad assortment of merchandise that includes men's and women's apparel, accessories, cosmetics, footwear, and home furnishings.

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