Resona Asset Management Co. Ltd. Acquires 7,234 Shares of Dollar General Corporation $DG

Key Points

• Resona Asset Management Co. Ltd. increased its stake in Dollar General by 11.4% during the first quarter, owning 70,891 shares valued at approximately $6.21 million.
• Several analysts have upgraded Dollar General's stock ratings, with Bank of America raising its price target to $135 and maintaining a "buy" rating.
• Dollar General announced a quarterly dividend of $0.59 per share, which corresponds to an annualized dividend yield of 2.1% and a payout ratio of 45.04%.

Resona Asset Management Co. Ltd. boosted its holdings in shares of Dollar General Corporation (NYSE:DG - Free Report) by 11.4% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 70,891 shares of the company's stock after purchasing an additional 7,234 shares during the period. Resona Asset Management Co. Ltd.'s holdings in Dollar General were worth $6,213,000 at the end of the most recent quarter.

Other hedge funds have also made changes to their positions in the company. Federated Hermes Inc. boosted its stake in shares of Dollar General by 9.8% during the 4th quarter. Federated Hermes Inc. now owns 2,159 shares of the company's stock valued at $164,000 after buying an additional 192 shares during the period. Townsquare Capital LLC raised its position in shares of Dollar General by 6.7% in the fourth quarter. Townsquare Capital LLC now owns 13,013 shares of the company's stock valued at $987,000 after purchasing an additional 813 shares during the period. Mariner LLC lifted its stake in shares of Dollar General by 140.0% in the fourth quarter. Mariner LLC now owns 136,717 shares of the company's stock worth $10,366,000 after buying an additional 79,759 shares during the last quarter. Canada Post Corp Registered Pension Plan acquired a new stake in shares of Dollar General in the fourth quarter valued at about $259,000. Finally, Guggenheim Capital LLC increased its stake in shares of Dollar General by 10.1% in the fourth quarter. Guggenheim Capital LLC now owns 42,076 shares of the company's stock worth $3,190,000 after purchasing an additional 3,867 shares during the period. 91.77% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

DG has been the subject of a number of research reports. UBS Group increased their price target on shares of Dollar General from $120.00 to $128.00 and gave the company a "buy" rating in a report on Wednesday, June 4th. Sanford C. Bernstein set a $120.00 price target on shares of Dollar General in a report on Friday, May 23rd. Telsey Advisory Group reiterated a "market perform" rating and set a $120.00 target price on shares of Dollar General in a research report on Thursday, July 17th. Morgan Stanley increased their target price on shares of Dollar General from $85.00 to $115.00 and gave the stock an "equal weight" rating in a research report on Wednesday, June 4th. Finally, Piper Sandler upped their price objective on shares of Dollar General from $112.00 to $115.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 22nd. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and sixteen have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $108.80.

Dollar General Price Performance

Shares of DG traded down $0.0690 during mid-day trading on Tuesday, reaching $112.2310. The company had a trading volume of 906,454 shares, compared to its average volume of 3,750,393. The company's 50 day simple moving average is $112.06 and its 200 day simple moving average is $95.99. The company has a market capitalization of $24.70 billion, a price-to-earnings ratio of 21.45, a P/E/G ratio of 2.76 and a beta of 0.31. Dollar General Corporation has a 1-year low of $66.43 and a 1-year high of $126.98. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.20 and a current ratio of 1.23.

Dollar General (NYSE:DG - Get Free Report) last issued its quarterly earnings data on Tuesday, June 3rd. The company reported $1.78 earnings per share for the quarter, topping analysts' consensus estimates of $1.46 by $0.32. Dollar General had a return on equity of 17.93% and a net margin of 2.81%.The business had revenue of $10.44 billion for the quarter, compared to analyst estimates of $10.25 billion. During the same quarter in the previous year, the company posted $1.65 EPS. Dollar General's quarterly revenue was up 5.3% compared to the same quarter last year. Dollar General has set its FY 2025 guidance at 5.200-5.800 EPS. Analysts expect that Dollar General Corporation will post 5.75 EPS for the current year.

Dollar General Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 22nd. Shareholders of record on Tuesday, July 8th were issued a dividend of $0.59 per share. The ex-dividend date was Tuesday, July 8th. This represents a $2.36 annualized dividend and a yield of 2.1%. Dollar General's dividend payout ratio is presently 45.04%.

Insider Transactions at Dollar General

In other news, EVP Kathleen A. Reardon sold 6,438 shares of the business's stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $111.56, for a total transaction of $718,223.28. Following the completion of the sale, the executive vice president directly owned 41,646 shares of the company's stock, valued at $4,646,027.76. The trade was a 13.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Emily C. Taylor sold 1,969 shares of the firm's stock in a transaction dated Tuesday, June 17th. The shares were sold at an average price of $113.00, for a total transaction of $222,497.00. Following the completion of the transaction, the executive vice president directly owned 46,563 shares in the company, valued at approximately $5,261,619. The trade was a 4.06% decrease in their position. The disclosure for this sale can be found here. 0.56% of the stock is owned by company insiders.

About Dollar General

Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, disinfectants, and laundry products; packaged food comprising cereals, pasta, canned soups, fruits and vegetables, condiments, spices, sugar, and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer, and wine.