Dillard's (NYSE:DDS) Hits New 1-Year High - What's Next?

Key Points

• Dillard's stock has reached a new 52-week high, trading at $549.55, with an average price target of $394.33 from analysts, many of whom currently rate the stock as a "sell."
• The company reported strong quarterly earnings, achieving an EPS of $4.66, exceeding analyst expectations, and announced an increase in its dividend from $0.25 to $0.30 per share.
• Institutional investors own 67.15% of Dillard's shares, with notable increases in holdings from several large investment firms during the second quarter.

Dillard's, Inc. (NYSE:DDS - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $549.55 and last traded at $548.41, with a volume of 189191 shares changing hands. The stock had previously closed at $525.32.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the stock. Wall Street Zen downgraded shares of Dillard's from a "buy" rating to a "hold" rating in a research note on Saturday. JPMorgan Chase & Co. boosted their target price on shares of Dillard's from $368.00 to $458.00 and gave the company an "underweight" rating in a research note on Monday, July 28th. Telsey Advisory Group boosted their target price on shares of Dillard's from $450.00 to $550.00 and gave the company a "market perform" rating in a research note on Friday, August 15th. Finally, UBS Group boosted their price target on shares of Dillard's from $170.00 to $175.00 and gave the company a "sell" rating in a report on Friday, August 15th. One equities research analyst has rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Sell" and a consensus price target of $394.33.

Dillard's Price Performance

The stock has a market capitalization of $8.32 billion, a P/E ratio of 14.67 and a beta of 0.99. The stock's fifty day moving average is $472.51 and its 200-day moving average is $411.44. The company has a debt-to-equity ratio of 0.28, a current ratio of 2.41 and a quick ratio of 1.13.

Dillard's (NYSE:DDS - Get Free Report) last issued its quarterly earnings data on Thursday, August 14th. The company reported $4.66 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.79 by $0.87. The firm had revenue of $1.51 billion during the quarter, compared to analysts' expectations of $1.50 billion. Dillard's had a net margin of 8.87% and a return on equity of 30.74%. Dillard's's revenue for the quarter was up 1.6% on a year-over-year basis. During the same period in the prior year, the company posted $11.09 earnings per share. On average, equities analysts anticipate that Dillard's, Inc. will post 33.25 earnings per share for the current year.

Dillard's Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, November 3rd. Shareholders of record on Tuesday, September 30th will be issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 0.2%. This is a positive change from Dillard's's previous quarterly dividend of $0.25. The ex-dividend date is Tuesday, September 30th. Dillard's's dividend payout ratio is currently 2.76%.

Institutional Investors Weigh In On Dillard's

A number of hedge funds have recently bought and sold shares of the company. New Vernon Capital Holdings II LLC lifted its stake in shares of Dillard's by 26,618.5% in the first quarter. New Vernon Capital Holdings II LLC now owns 186,228 shares of the company's stock valued at $66,694,000 after buying an additional 185,531 shares during the period. Millennium Management LLC grew its holdings in Dillard's by 3,989.8% during the 4th quarter. Millennium Management LLC now owns 37,790 shares of the company's stock worth $16,315,000 after acquiring an additional 36,866 shares during the period. Goldman Sachs Group Inc. increased its position in shares of Dillard's by 75.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 66,142 shares of the company's stock valued at $23,687,000 after buying an additional 28,468 shares in the last quarter. Norges Bank bought a new stake in shares of Dillard's in the 2nd quarter valued at $10,238,000. Finally, Summit Street Capital Management LLC bought a new position in Dillard's during the 4th quarter worth about $9,155,000. 67.15% of the stock is currently owned by institutional investors.

Dillard's Company Profile

Dillard's, Inc engages in the retail of fashion apparel, cosmetics, and home furnishings, and other consumer goods. It operates through the Retail Operations and Construction segments. The Retail Operations segment comprises sells cosmetics, ladies' apparel, ladies' accessories and lingerie, juniors' and children's apparel, men's apparel and accessories, shoes, and home and furniture products.