Dollar General Corporation $DG Holdings Reduced by Pzena Investment Management LLC

Key Points

• Pzena Investment Management reduced its Dollar General stake by 8.6% in the fourth quarter, selling about 1.0 million shares. Even after the sale, Dollar General remained Pzena’s third-largest holding and represented 4.85% of its portfolio.
• Dollar General reported stronger-than-expected quarterly results, posting EPS of $1.93 versus the $1.57 estimate and revenue of $10.91 billion, up 5.9% year over year. The company also provided FY2026 EPS guidance of $7.10 to $7.35.
• Analyst sentiment is mixed, with the stock carrying a consensus “Hold” rating and an average price target of $143.62. Meanwhile, recent estimate cuts from HSBC and KeyCorp have raised concerns about slowing long-term earnings growth.

Pzena Investment Management LLC decreased its stake in shares of Dollar General Corporation (NYSE:DG - Free Report) by 8.6% during the fourth quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 10,676,823 shares of the company's stock after selling 1,000,846 shares during the quarter. Dollar General comprises 4.3% of Pzena Investment Management LLC's holdings, making the stock its 3rd largest position. Pzena Investment Management LLC owned 4.85% of Dollar General worth $1,417,562,000 as of its most recent filing with the SEC.

A number of other institutional investors have also recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its position in Dollar General by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 27,309,045 shares of the company's stock worth $3,625,822,000 after buying an additional 412,542 shares in the last quarter. State Street Corp lifted its position in Dollar General by 9.1% during the third quarter. State Street Corp now owns 10,963,378 shares of the company's stock worth $1,133,065,000 after buying an additional 913,373 shares in the last quarter. Baillie Gifford & Co. lifted its position in Dollar General by 2.1% during the fourth quarter. Baillie Gifford & Co. now owns 3,316,155 shares of the company's stock worth $440,286,000 after buying an additional 68,723 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position in Dollar General by 3.6% during the third quarter. Arrowstreet Capital Limited Partnership now owns 2,811,797 shares of the company's stock worth $290,599,000 after buying an additional 96,825 shares in the last quarter. Finally, Invesco Ltd. lifted its position in Dollar General by 7.4% during the third quarter. Invesco Ltd. now owns 2,725,276 shares of the company's stock worth $281,657,000 after buying an additional 188,949 shares in the last quarter. Hedge funds and other institutional investors own 91.77% of the company's stock.

Dollar General Price Performance

NYSE:DG opened at $105.13 on Friday. Dollar General Corporation has a 52 week low of $95.11 and a 52 week high of $158.23. The company has a quick ratio of 0.22, a current ratio of 1.13 and a debt-to-equity ratio of 0.54. The company has a market capitalization of $23.15 billion, a P/E ratio of 15.35, a P/E/G ratio of 1.70 and a beta of 0.28. The stock's fifty day moving average is $118.76 and its two-hundred day moving average is $128.36.

Dollar General (NYSE:DG - Get Free Report) last posted its earnings results on Thursday, March 12th. The company reported $1.93 EPS for the quarter, beating analysts' consensus estimates of $1.57 by $0.36. Dollar General had a return on equity of 18.66% and a net margin of 3.54%.The company had revenue of $10.91 billion for the quarter, compared to the consensus estimate of $10.78 billion. During the same quarter in the previous year, the business earned $0.87 earnings per share. The company's revenue for the quarter was up 5.9% on a year-over-year basis. Dollar General has set its FY 2026 guidance at 7.100-7.35 EPS. Equities analysts expect that Dollar General Corporation will post 7.26 EPS for the current year.

Dollar General Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, April 21st. Stockholders of record on Tuesday, April 7th were paid a $0.59 dividend. The ex-dividend date of this dividend was Tuesday, April 7th. This represents a $2.36 dividend on an annualized basis and a dividend yield of 2.2%. Dollar General's payout ratio is presently 34.45%.

Key Dollar General News

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

• Positive Sentiment: HSBC lifted its FY2027 EPS estimate for Dollar General to $7.32 from $7.29, and the company’s recent earnings surprise history has kept some investors focused on the possibility of another beat. Article: Will Dollar General (DG) Beat Estimates Again in Its Next Earnings Report?
• Positive Sentiment: Some coverage still frames Dollar General as a long-term value idea, which may support investor sentiment despite recent weakness. Article: Why Dollar General (DG) is a Top Value Stock for the Long-Term
• Neutral Sentiment: An article on retail-wholesale stocks highlighted Dollar General as a name to watch for potential earnings strength, but the piece was more educational than company-specific. Article: These 2 Retail and Wholesale Stocks Could Beat Earnings
• Neutral Sentiment: A broader market piece mentioned Dollar General among Wall Street favorites, but the article mainly warned investors that analyst price targets can be overly optimistic. Article: 1 of Wall Street’s Favorite Stock on Our Buy List and 2 Facing Headwinds
• Negative Sentiment: HSBC and KeyCorp cut multiple forward earnings estimates for Dollar General, including FY2028, FY2029, FY2030 and FY2031, signaling slower long-term profit growth expectations. Article: Assessing Dollar General (DG) Valuation After Recent Share Price Weakness
• Negative Sentiment: HSBC also lowered near-term quarterly estimates and KeyCorp trimmed FY2027 and FY2028 EPS forecasts, reinforcing concerns that earnings momentum may be cooling. Article: How to Boost Your Portfolio with Top Retail-Wholesale Stocks Set to Beat Earnings

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the company. Weiss Ratings reiterated a "hold (c)" rating on shares of Dollar General in a research report on Friday, April 10th. BMO Capital Markets lifted their price objective on Dollar General from $130.00 to $145.00 and gave the stock a "market perform" rating in a research report on Friday, February 13th. Oppenheimer lifted their price objective on Dollar General from $145.00 to $170.00 and gave the stock an "outperform" rating in a research report on Tuesday, February 24th. UBS Group restated a "buy" rating and issued a $163.00 target price on shares of Dollar General in a research report on Monday, March 16th. Finally, BNP Paribas Exane restated a "neutral" rating and issued a $127.00 target price on shares of Dollar General in a research report on Thursday, March 12th. Thirteen analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $143.62.

Dollar General 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.