Dollar General Corporation (NYSE:DG) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Dollar General holds a consensus “Hold” rating among 29 brokerages: 18 analysts rate it a hold, 10 recommend buying, and one recommends selling. The average 12-month price target is $131.27, slightly above the reported share price of $128.63.
• The company’s latest quarterly results beat expectations on earnings, reporting $2.00 per share versus the $1.89 consensus, while revenue rose 3.4% year over year to $10.79 billion. Analysts expect approximately $7.38 in full-year EPS, within Dollar General’s guidance range.
• Institutional investors and hedge funds own 91.77% of Dollar General’s shares. The company also pays a quarterly dividend of $0.59 per share, or $2.36 annually, representing a 1.8% yield.

Shares of Dollar General Corporation (NYSE:DG - Get Free Report) have been given a consensus rating of "Hold" by the twenty-nine brokerages that are currently covering the company, MarketBeat reports. One research analyst has rated the stock with a sell rating, eighteen have issued a hold rating and ten have given a buy rating to the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $131.2692.

Several equities research analysts recently weighed in on DG shares. BMO Capital Markets dropped their price objective on shares of Dollar General from $135.00 to $120.00 and set a "market perform" rating on the stock in a research note on Wednesday, June 3rd. Wall Street Zen lowered Dollar General from a "buy" rating to a "hold" rating in a report on Saturday, April 4th. Loop Capital increased their price target on Dollar General from $110.00 to $115.00 and gave the stock a "hold" rating in a research report on Wednesday, June 3rd. Citigroup cut their price target on Dollar General from $138.00 to $116.00 and set a "neutral" rating on the stock in a report on Wednesday, June 3rd. Finally, Evercore reduced their price objective on Dollar General from $145.00 to $140.00 in a research report on Wednesday, June 3rd.

Institutional Trading of Dollar General

Several institutional investors and hedge funds have recently added to or reduced their stakes in DG. Calamos Advisors LLC boosted its stake in Dollar General by 32.9% in the 4th quarter. Calamos Advisors LLC now owns 245,473 shares of the company's stock worth $32,591,000 after purchasing an additional 60,746 shares during the period. Park Capital Management LLC WI purchased a new position in shares of Dollar General during the fourth quarter valued at $1,245,000. Norges Bank purchased a new position in shares of Dollar General during the fourth quarter valued at $133,431,000. Geode Capital Management LLC raised its position in Dollar General by 0.8% during 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. Finally, Pinebridge Investments LLC acquired a new position in Dollar General during the fourth quarter valued at $11,864,000. 91.77% of the stock is owned by institutional investors and hedge funds.

Dollar General Price Performance

Shares of DG opened at $128.63 on Thursday. Dollar General has a 52 week low of $95.11 and a 52 week high of $158.23. The company has a current ratio of 1.17, a quick ratio of 0.25 and a debt-to-equity ratio of 0.52. The firm has a market cap of $28.37 billion, a price-to-earnings ratio of 18.19, a PEG ratio of 1.92 and a beta of 0.25. The stock has a 50 day moving average of $114.82 and a 200-day moving average of $126.59.

Dollar General (NYSE:DG - Get Free Report) last released its quarterly earnings data on Tuesday, June 2nd. The company reported $2.00 EPS for the quarter, topping analysts' consensus estimates of $1.89 by $0.11. Dollar General had a net margin of 3.63% and a return on equity of 18.65%. The firm had revenue of $10.79 billion during the quarter, compared to the consensus estimate of $10.81 billion. During the same quarter in the previous year, the company posted $1.78 earnings per share. The firm's revenue was up 3.4% on a year-over-year basis. Dollar General has set its FY 2026 guidance at 7.200-7.450 EPS. As a group, analysts forecast that Dollar General will post 7.38 EPS for the current year.

Dollar General Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Tuesday, July 7th were paid a dividend of $0.59 per share. This represents a $2.36 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date was Tuesday, July 7th. Dollar General's dividend payout ratio (DPR) is currently 33.38%.

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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