Dillard's, Inc. $DDS Shares Acquired by Northwestern Mutual Wealth Management Co.

Key Points

• Northwestern Mutual Wealth Management dramatically increased its Dillard’s stake in the fourth quarter, owning 226,529 shares worth about $137.4 million after a massive purchase. Institutional investors overall hold about 67.15% of the company.
• Dillard’s reported strong quarterly results, with EPS of $16.04 versus the $10.13 consensus and revenue of $1.59 billion, topping estimates. Comparable-store sales rose 3% and total retail sales also increased 3%.
• Despite the earnings beat, analyst sentiment remains cautious, with several downgrades and an average rating of “Reduce.” The consensus price target sits at $521.33, below the stock’s recent opening price of $540.51.

Northwestern Mutual Wealth Management Co. increased its stake in Dillard's, Inc. (NYSE:DDS - Free Report) by 28,394.2% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 226,529 shares of the company's stock after buying an additional 225,734 shares during the quarter. Northwestern Mutual Wealth Management Co. owned about 1.45% of Dillard's worth $137,354,000 as of its most recent filing with the SEC.

Other large investors have also modified their holdings of the company. Farther Finance Advisors LLC boosted its position in Dillard's by 9.1% during the 4th quarter. Farther Finance Advisors LLC now owns 191 shares of the company's stock valued at $116,000 after purchasing an additional 16 shares during the period. Teacher Retirement System of Texas boosted its position in Dillard's by 2.3% during the 3rd quarter. Teacher Retirement System of Texas now owns 1,040 shares of the company's stock valued at $639,000 after purchasing an additional 23 shares during the period. Mercer Global Advisors Inc. ADV boosted its position in Dillard's by 3.1% during the 3rd quarter. Mercer Global Advisors Inc. ADV now owns 896 shares of the company's stock valued at $551,000 after purchasing an additional 27 shares during the period. Wealth Enhancement Advisory Services LLC boosted its position in Dillard's by 6.2% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 512 shares of the company's stock valued at $334,000 after purchasing an additional 30 shares during the period. Finally, Geneos Wealth Management Inc. boosted its position in Dillard's by 14.8% during the 2nd quarter. Geneos Wealth Management Inc. now owns 263 shares of the company's stock valued at $110,000 after purchasing an additional 34 shares during the period. Institutional investors and hedge funds own 67.15% of the company's stock.

Dillard's Stock Up 1.1%

Shares of Dillard's stock opened at $540.51 on Friday. The business's fifty day moving average price is $580.45 and its two-hundred day moving average price is $619.96. The company has a debt-to-equity ratio of 0.24, a current ratio of 2.65 and a quick ratio of 1.31. The company has a market capitalization of $8.44 billion, a P/E ratio of 12.85 and a beta of 1.17. Dillard's, Inc. has a 1-year low of $386.85 and a 1-year high of $741.97.

Dillard's (NYSE:DDS - Get Free Report) last announced its earnings results on Thursday, May 14th. The company reported $16.04 earnings per share for the quarter, beating the consensus estimate of $10.13 by $5.91. Dillard's had a return on equity of 31.89% and a net margin of 10.09%.The firm had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $1.55 billion. During the same quarter in the previous year, the business earned $10.39 EPS. The firm's revenue for the quarter was up 2.7% on a year-over-year basis. As a group, research analysts forecast that Dillard's, Inc. will post 32.52 EPS for the current year.

Dillard's Dividend Announcement

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

Dillard's News Summary

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

Wall Street Analyst Weigh In

DDS has been the subject of a number of analyst reports. UBS Group boosted their price objective on Dillard's from $460.00 to $465.00 and gave the company a "sell" rating in a research report on Wednesday, May 6th. Wall Street Zen downgraded Dillard's from a "buy" rating to a "hold" rating in a research note on Saturday, March 28th. Telsey Advisory Group cut their target price on Dillard's from $700.00 to $650.00 and set a "market perform" rating on the stock in a research note on Wednesday, February 25th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Dillard's in a research note on Wednesday, January 21st. Finally, Zacks Research downgraded 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 given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus price target of $521.33.

About Dillard's

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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