Convergence Investment Partners LLC Buys New Stake in Dillard's, Inc. $DDS

Key Points

• Convergence Investment Partners disclosed a new fourth-quarter stake in Dillard’s, buying 2,347 shares valued at about $1.42 million.
• Dillard’s reported better-than-expected Q1 results, with EPS of $16.04 versus $10.13 expected and revenue of $1.59 billion topping estimates.
• The stock has seen mixed analyst sentiment, with a consensus rating of “Reduce” and an average price target of $521.33, while several firms recently maintained sell or hold views.

Convergence Investment Partners LLC bought a new stake in Dillard's, Inc. (NYSE:DDS - Free Report) during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 2,347 shares of the company's stock, valued at approximately $1,423,000.

Several other large investors have also recently bought and sold shares of DDS. Northwestern Mutual Wealth Management Co. boosted its stake in Dillard's by 28,394.2% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 226,529 shares of the company's stock valued at $137,354,000 after acquiring an additional 225,734 shares in the last quarter. AQR Capital Management LLC boosted its stake in Dillard's by 14.0% in the third quarter. AQR Capital Management LLC now owns 103,714 shares of the company's stock valued at $63,730,000 after acquiring an additional 12,699 shares in the last quarter. UBS Group AG boosted its stake in Dillard's by 27.7% in the fourth quarter. UBS Group AG now owns 67,895 shares of the company's stock valued at $41,167,000 after acquiring an additional 14,718 shares in the last quarter. Gotham Asset Management LLC boosted its stake in Dillard's by 52.8% in the third quarter. Gotham Asset Management LLC now owns 66,519 shares of the company's stock valued at $40,875,000 after acquiring an additional 22,991 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its stake in Dillard's by 75.6% in the first quarter. Goldman Sachs Group Inc. now owns 66,142 shares of the company's stock valued at $23,687,000 after acquiring an additional 28,468 shares in the last quarter. Hedge funds and other institutional investors own 67.15% of the company's stock.

Dillard's Trading Up 1.1%

Shares of Dillard's stock opened at $540.51 on Friday. Dillard's, Inc. has a 12-month low of $386.85 and a 12-month high of $741.97. The company has a current ratio of 2.65, a quick ratio of 1.31 and a debt-to-equity ratio of 0.24. The stock has a market cap of $8.44 billion, a PE ratio of 12.85 and a beta of 1.17. The company has a 50-day moving average of $580.45 and a two-hundred day moving average of $619.96.

Dillard's (NYSE:DDS - Get Free Report) last issued its earnings results on Thursday, May 14th. The company reported $16.04 earnings per share (EPS) 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 31.89%. The company had revenue of $1.59 billion during the quarter, compared to analysts' expectations of $1.55 billion. During the same period last year, the company posted $10.39 earnings per share. The firm's quarterly revenue was up 2.7% compared to the same quarter last year. On average, research analysts anticipate that Dillard's, Inc. will post 32.52 EPS for the current fiscal year.

Dillard's Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, May 4th. Shareholders of record on Tuesday, March 31st were issued a $0.30 dividend. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $1.20 dividend on an annualized basis and a yield of 0.2%. Dillard's's dividend payout ratio (DPR) is 2.85%.

Analyst Upgrades and Downgrades

Several research firms have issued reports on DDS. UBS Group upped their price objective on shares of Dillard's from $460.00 to $465.00 and gave the company a "sell" rating in a research note on Wednesday, May 6th. Wall Street Zen downgraded shares of Dillard's from a "buy" rating to a "hold" rating in a research note on Saturday, March 28th. JPMorgan Chase & Co. decreased their price objective on shares of Dillard's from $524.00 to $449.00 and set an "underweight" rating for the company in a research note on Wednesday, February 25th. Telsey Advisory Group decreased their price objective on shares of Dillard's from $700.00 to $650.00 and set a "market perform" rating for the company in a research note on Wednesday, February 25th. Finally, Zacks Research downgraded shares of Dillard's from a "strong-buy" rating to a "hold" rating in a research note on Monday, February 23rd. Three research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Dillard's has a consensus rating of "Reduce" and an average target price of $521.33.

Dillard's News Roundup

Here are the key news stories impacting Dillard's this week:

• Positive Sentiment: Q1 earnings came in well above estimates at $16.04 per share versus about $10 expected, while revenue also topped forecasts, signaling better-than-anticipated profitability and demand. Dillard's, Inc. Reports First Quarter Results
• Positive Sentiment: Comparable-store sales rose 3% and total retail sales increased 3%, showing improving traffic and stronger merchandise demand across all major categories. Dillard's Q1 Earnings & Sales Beat Estimates, Retail Sales Up 3%
• Positive Sentiment: Gross margin improved to 45.8% and net income jumped to $250.6 million, helped by a favorable litigation settlement and better operating leverage. Dillard’s Shares Rise After Earnings Beat Fueled by Litigation Settlement (DDS)
• Neutral Sentiment: Management opened a new store in Ohio and raised inventory slightly, but also noted higher operating expenses, which could temper margin gains if costs stay elevated. Dillard's, Inc. Reports First Quarter Results
• Negative Sentiment: Some analysts remain cautious, arguing the strength may be temporary because results were aided by one-time litigation gains and may not fully reflect underlying retail demand. Dillard's: Strength Is Temporary

Dillard's Company Profile

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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