Capital International Investors Lowers Stake in Dollar General Corporation $DG

Key Points

• Capital International Investors cut its Dollar General stake by 10.9% in the fourth quarter, selling 136,939 shares and ending with 1.12 million shares worth about $149 million.
• Other institutional investors were active in DG, with several firms significantly increasing positions; overall, 91.77% of the stock is owned by hedge funds and other institutions.
• Dollar General reported quarterly earnings of $2.00 per share, beating estimates, and said it will pay a $0.59 quarterly dividend on July 21, implying a 2.2% annual yield.

Capital International Investors reduced its holdings in shares of Dollar General Corporation (NYSE:DG - Free Report) by 10.9% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,122,046 shares of the company's stock after selling 136,939 shares during the period. Capital International Investors owned 0.51% of Dollar General worth $148,974,000 at the end of the most recent reporting period.

A number of other large investors also recently bought and sold shares of DG. Life Cycle Investment Partners Ltd purchased a new position in Dollar General during the 4th quarter valued at about $363,299,000. AQR Capital Management LLC lifted its position 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 position 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 valued at $224,953,000 after acquiring an additional 1,687,533 shares during the period. Robeco Institutional Asset Management B.V. lifted its position 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 valued at $225,692,000 after acquiring an additional 1,377,226 shares during the period. Finally, Norges Bank bought a new stake in Dollar General during the 4th quarter valued at about $133,431,000. 91.77% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

DG has been the subject of a number of analyst reports. KeyCorp restated a "sector weight" rating on shares of Dollar General in a research note on Friday, March 13th. The Goldman Sachs Group reduced their price objective on shares of Dollar General from $130.00 to $128.00 and set a "neutral" rating for the company in a research note on Wednesday, June 3rd. Deutsche Bank Aktiengesellschaft raised their price objective on shares of Dollar General from $110.00 to $114.00 and gave the company a "hold" rating in a research note on Thursday, June 4th. Gordon Haskett lowered shares of Dollar General from a "buy" rating to a "hold" rating and reduced their price objective for the company from $140.00 to $110.00 in a research note on Friday, May 22nd. Finally, Evercore reduced their price objective on shares of Dollar General from $145.00 to $140.00 in a research note on Wednesday, June 3rd. Ten research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $131.27.

Dollar General Stock Performance

Shares of NYSE DG opened at $106.80 on Tuesday. The firm's 50-day moving average price is $113.61 and its 200-day moving average price is $128.76. The company has a quick ratio of 0.25, a current ratio of 1.17 and a debt-to-equity ratio of 0.52. The company has a market cap of $23.56 billion, a PE ratio of 15.11, a PEG ratio of 1.59 and a beta of 0.26. Dollar General Corporation has a 52-week low of $95.11 and a 52-week high of $158.23.

Dollar General (NYSE:DG - Get Free Report) last issued its quarterly earnings data 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 company had revenue of $10.79 billion for 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 firm's revenue for the quarter was up 3.4% compared to the same quarter last year. During the same quarter 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. As a group, analysts anticipate that Dollar General Corporation will post 7.33 EPS for the current year.

Dollar General Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 21st. Investors of record on Tuesday, July 7th will be given a dividend of $0.59 per share. The ex-dividend date is Tuesday, July 7th. This represents a $2.36 dividend on an annualized basis and a yield of 2.2%. Dollar General's dividend payout ratio is 33.38%.

Dollar General Company Profile

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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