Arax Advisory Partners Reduces Position in Dollar General Corporation $DG

Key Points

• Arax Advisory Partners cut its Dollar General stake sharply, reducing holdings by 83.8% in the fourth quarter and selling 69,231 shares. It ended the period with 13,348 shares valued at about $1.77 million.
• Dollar General reported better-than-expected earnings for the quarter, posting $2.00 per share versus the $1.89 estimate, while revenue came in slightly below expectations at $10.79 billion. Quarterly revenue still rose 3.4% year over year.
• The company raised attention with its dividend and mixed analyst sentiment, announcing a $0.59 quarterly dividend and a 2.0% yield, while analysts currently have a consensus “Hold” rating and a $131.27 target price.

Arax Advisory Partners lessened its holdings in shares of Dollar General Corporation (NYSE:DG - Free Report) by 83.8% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 13,348 shares of the company's stock after selling 69,231 shares during the period. Arax Advisory Partners' holdings in Dollar General were worth $1,772,000 at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of the business. Life Cycle Investment Partners Ltd purchased a new stake in shares of Dollar General in the 4th quarter valued at approximately $363,299,000. AQR Capital Management LLC boosted its holdings in Dollar General by 416.4% during the 3rd quarter. AQR Capital Management LLC now owns 2,525,608 shares of the company's stock valued at $259,759,000 after acquiring an additional 2,036,573 shares during the period. Bessemer Group Inc. lifted its holdings in Dollar General by 24,882.5% during the 4th quarter. Bessemer Group Inc. now owns 1,694,315 shares of the company's stock worth $224,953,000 after buying an additional 1,687,533 shares in the last quarter. Morgan Stanley lifted its holdings in Dollar General by 35.0% during the 4th quarter. Morgan Stanley now owns 6,270,333 shares of the company's stock worth $832,513,000 after buying an additional 1,624,748 shares in the last quarter. Finally, Robeco Institutional Asset Management B.V. lifted its holdings in Dollar General by 426.9% during the 4th quarter. Robeco Institutional Asset Management B.V. now owns 1,699,871 shares of the company's stock worth $225,692,000 after buying an additional 1,377,226 shares in the last quarter. Hedge funds and other institutional investors own 91.77% of the company's stock.

Dollar General Price Performance

DG opened at $116.39 on Tuesday. The company has a quick ratio of 0.25, a current ratio of 1.17 and a debt-to-equity ratio of 0.52. Dollar General Corporation has a 52-week low of $95.11 and a 52-week high of $158.23. The company has a 50 day moving average of $113.11 and a two-hundred day moving average of $129.16. The company has a market cap of $25.67 billion, a P/E ratio of 16.46, a P/E/G ratio of 1.75 and a beta of 0.26.

Dollar General (NYSE:DG - Get Free Report) last announced its earnings results on Tuesday, June 2nd. The company reported $2.00 earnings per share for the quarter, beating the consensus estimate of $1.89 by $0.11. The business had revenue of $10.79 billion during the quarter, compared to the consensus estimate of $10.81 billion. Dollar General had a net margin of 3.63% and a return on equity of 18.65%. The business's quarterly revenue was up 3.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.78 earnings per share. Dollar General has set its FY 2026 guidance at 7.200-7.450 EPS. On average, analysts expect that Dollar General Corporation will post 7.38 earnings per share for the current year.

Dollar General Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 21st. Shareholders of record on Tuesday, July 7th will be issued a dividend of $0.59 per share. This represents a $2.36 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend is Tuesday, July 7th. Dollar General's dividend payout ratio is 33.38%.

Analyst Upgrades and Downgrades

DG has been the topic of a number of analyst reports. HSBC reduced their price objective on shares of Dollar General from $141.00 to $125.00 and set a "hold" rating on the stock in a report on Wednesday, June 3rd. Morgan Stanley lowered their price objective on shares of Dollar General from $150.00 to $132.00 and set an "equal weight" rating on the stock in a research report on Wednesday, June 3rd. KeyCorp reaffirmed a "sector weight" rating on shares of Dollar General in a report on Friday, March 13th. Jefferies Financial Group lowered their target price on shares of Dollar General from $155.00 to $135.00 and set a "buy" rating on the stock in a report on Wednesday, June 3rd. Finally, UBS Group reiterated a "buy" rating on shares of Dollar General in a research note on Wednesday, May 27th. Ten analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $131.27.

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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