Dollar General (NYSE:DG) Downgraded to "Hold" Rating by Freedom Capital

Key Points

• Freedom Capital downgraded Dollar General from “strong-buy” to “hold,” while several other analysts also trimmed price targets, leaving the stock with a consensus rating of Hold and an average target price of $134.15.
• Dollar General’s latest quarter beat earnings expectations, posting $2.00 EPS versus $1.89 expected, and revenue rose 3.4% year over year to $10.79 billion. The company also raised its FY2026 EPS guidance to $7.20-$7.45.
• The stock was trading around $105.10, well below its 52-week high of $158.23, as analysts remained cautious despite improved operations and strong institutional ownership of 91.77%.

Dollar General (NYSE:DG - Get Free Report) was downgraded by investment analysts at Freedom Capital from a "strong-buy" rating to a "hold" rating in a research note issued on Tuesday,Zacks.com reports.

A number of other research analysts have also recently weighed in on DG. HSBC reduced their price target on shares of Dollar General from $141.00 to $125.00 and set a "hold" rating on the stock in a research report on Wednesday. BNP Paribas Exane reduced their price target on shares of Dollar General from $144.00 to $113.00 and set a "neutral" rating on the stock in a research report on Wednesday. UBS Group reiterated a "buy" rating on shares of Dollar General in a research note on Wednesday, May 27th. Rothschild & Co Redburn dropped their price objective on shares of Dollar General from $111.00 to $90.00 and set a "sell" rating on the stock in a research note on Monday, May 18th. Finally, Guggenheim dropped their price objective on shares of Dollar General from $160.00 to $140.00 and set a "buy" rating on the stock in a research note on Wednesday. Eleven equities research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $134.15.

Dollar General Trading Down 1.1%

Shares of DG stock opened at $105.10 on Tuesday. The stock has a market cap of $23.15 billion, a price-to-earnings ratio of 14.87, a price-to-earnings-growth ratio of 1.76 and a beta of 0.26. The company has a quick ratio of 0.22, a current ratio of 1.17 and a debt-to-equity ratio of 0.52. Dollar General has a fifty-two week low of $95.11 and a fifty-two week high of $158.23. The firm's 50 day moving average price is $114.46 and its two-hundred day moving average price is $128.74.

Dollar General (NYSE:DG - Get Free Report) last announced its quarterly earnings results on Tuesday, June 2nd. The company reported $2.00 earnings per share for the quarter, beating analysts' consensus estimates of $1.89 by $0.11. The firm had revenue of $10.79 billion for the quarter, compared to analysts' expectations of $10.81 billion. Dollar General had a net margin of 3.63% and a return on equity of 18.65%. Dollar General's revenue was up 3.4% compared to the same quarter last year. During the same period in the previous year, the company posted $1.78 earnings per share. Dollar General has set its FY 2026 guidance at 7.200-7.450 EPS. On average, analysts anticipate that Dollar General will post 7.28 EPS for the current year.

Institutional Trading of Dollar General

Several institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its stake in Dollar General by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 27,309,045 shares of the company's stock valued at $3,625,822,000 after purchasing an additional 412,542 shares during the last quarter. State Street Corp increased its stake in Dollar General by 0.5% during the fourth quarter. State Street Corp now owns 11,017,002 shares of the company's stock valued at $1,462,727,000 after purchasing an additional 53,624 shares during the last quarter. Morgan Stanley increased its stake in Dollar General by 35.0% during the fourth quarter. Morgan Stanley now owns 6,270,333 shares of the company's stock valued at $832,513,000 after purchasing an additional 1,624,748 shares during the last quarter. Geode Capital Management LLC increased its stake 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 purchasing an additional 42,936 shares during the last quarter. Finally, AQR Capital Management LLC increased its stake in Dollar General by 47.9% during the fourth quarter. AQR Capital Management LLC now owns 3,734,500 shares of the company's stock valued at $495,830,000 after purchasing an additional 1,208,892 shares during the last quarter. Institutional investors own 91.77% of the company's stock.

Key Dollar General News

Here are the key news stories impacting Dollar General this week:

• Positive Sentiment: Dollar General beat Q1 EPS expectations, reporting $2.00 per share versus $1.89 expected, while revenue grew 3.4% year over year to $10.79 billion. The company also lifted its FY2026 profit outlook to $7.20-$7.45 EPS, signaling confidence in earnings momentum. Dollar General earnings report and conference call
• Positive Sentiment: Management pointed to positive customer traffic, margin expansion, and inventory discipline, suggesting operational improvements are helping offset weather and fuel-cost pressures. Dollar General Q1 earnings call highlights
• Positive Sentiment: Several analysts nudged earnings estimates higher after the results, including KeyCorp, which raised its Q3 and Q4 2027 EPS forecasts. Dollar General analyst updates
• Neutral Sentiment: Analyst views remain mixed overall: some firms kept buy or hold-equivalent ratings, while others cut price targets, reflecting cautious sentiment despite the earnings beat.
• Negative Sentiment: Citigroup, Goldman Sachs, BNP Paribas Exane, HSBC, Evercore, Guggenheim, Loop Capital, and Telsey all lowered price targets, suggesting limited near-term upside in some analysts’ eyes. Citigroup price target cut
• Negative Sentiment: Management said core customers are under more pressure from higher gas prices and reduced SNAP benefits, which could weigh on spending trends if conditions worsen. Dollar General customer pressure article

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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