Dillard's (NYSE:DDS) Raised to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Dillard's from “hold” to “buy,” adding a fresh bullish note to an already mixed analyst backdrop.
• Dillard’s recent quarterly results were strong, with EPS of $16.04 beating estimates by a wide margin and revenue of $1.59 billion topping forecasts. Revenue also rose 2.7% year over year.
• The stock traded up 2.7% to $524.14, while analyst sentiment remains split overall: MarketBeat shows a consensus rating of “Hold” with a $521.33 price target.

Dillard's (NYSE:DDS - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Sunday.

Several other analysts also recently weighed in on DDS. Weiss Ratings downgraded Dillard's from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, June 23rd. Zacks Research raised Dillard's from a "hold" rating to a "strong-buy" rating in a report on Friday, May 29th. Finally, UBS Group raised their price objective on Dillard's from $460.00 to $465.00 and gave the company a "sell" rating in a research note on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $521.33.

Dillard's Stock Up 2.7%

Shares of DDS traded up $13.75 during mid-day trading on Friday, reaching $524.14. 87,754 shares of the stock traded hands, compared to its average volume of 116,079. The firm has a market cap of $8.19 billion, a price-to-earnings ratio of 12.46 and a beta of 1.15. The stock has a fifty day simple moving average of $562.90 and a 200 day simple moving average of $598.16. Dillard's has a 12-month low of $424.86 and a 12-month high of $741.97. The company has a quick ratio of 1.20, a current ratio of 2.37 and a debt-to-equity ratio of 0.21.

Dillard's (NYSE:DDS - Get Free Report) last released its quarterly earnings results on Thursday, May 14th. The company reported $16.04 earnings per share for the quarter, beating analysts' consensus estimates of $10.13 by $5.91. Dillard's had a net margin of 10.09% and a return on equity of 31.43%. The business had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.55 billion. During the same period last year, the business earned $10.39 EPS. The business's revenue was up 2.7% on a year-over-year basis. Sell-side analysts expect that Dillard's will post 35.26 EPS for the current fiscal year.

Insider Activity at Dillard's

In related news, Director J C. Watts, Jr. sold 400 shares of Dillard's stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $609.18, for a total value of $243,672.00. Following the completion of the transaction, the director directly owned 10,150 shares in the company, valued at approximately $6,183,177. This trade represents a 3.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 34.80% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the company. JPMorgan Chase & Co. increased its position in Dillard's by 24.3% in the third quarter. JPMorgan Chase & Co. now owns 28,681 shares of the company's stock worth $17,624,000 after buying an additional 5,604 shares during the period. Nisa Investment Advisors LLC grew its position in shares of Dillard's by 16.9% during the fourth quarter. Nisa Investment Advisors LLC now owns 17,794 shares of the company's stock worth $11,289,000 after acquiring an additional 2,575 shares during the last quarter. Norges Bank acquired a new stake in shares of Dillard's in the 4th quarter worth about $36,598,000. Convergence Investment Partners LLC bought a new stake in Dillard's in the 4th quarter valued at about $1,423,000. Finally, Monument Capital Management lifted its position in Dillard's by 818.6% in the 4th quarter. Monument Capital Management now owns 4,198 shares of the company's stock valued at $2,545,000 after purchasing an additional 3,741 shares during the last quarter. Institutional investors own 67.15% of the company's stock.

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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