Fifth Third Bancorp Makes New Investment in Dillard's, Inc. $DDS

Key Points

• Fifth Third Bancorp opened a new position in Dillard’s during the first quarter, buying 6,607 shares worth about $3.78 million. Several other institutional investors also increased or initiated stakes, and institutional ownership stands at 67.15%.
• Dillard’s reported strong quarterly results, with EPS of $16.04 versus the $10.13 consensus estimate and revenue of $1.59 billion, slightly above expectations. Revenue rose 2.7% year over year, and analysts now expect full-year EPS of 35.26.
• Analyst sentiment remains mixed: recent moves included downgrades and upgrades, but the overall consensus is Hold with an average price target of $521.33. The stock was trading at $548.98, and Dillard’s also announced a quarterly dividend of $0.30 per share.

Fifth Third Bancorp purchased a new position in Dillard's, Inc. (NYSE:DDS - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 6,607 shares of the company's stock, valued at approximately $3,780,000.

A number of other institutional investors also recently modified their holdings of DDS. Rockefeller Capital Management L.P. raised its stake in Dillard's by 108.7% during the fourth quarter. Rockefeller Capital Management L.P. now owns 48 shares of the company's stock worth $29,000 after buying an additional 25 shares during the last quarter. Atlas Capital Advisors Inc. bought a new stake in Dillard's during the fourth quarter valued at $29,000. Quarry LP bought a new stake in Dillard's during the third quarter valued at $33,000. EverSource Wealth Advisors LLC grew its holdings in Dillard's by 790.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 89 shares of the company's stock worth $37,000 after acquiring an additional 79 shares during the period. Finally, Global Retirement Partners LLC grew its holdings in Dillard's by 6,300.0% during the 4th quarter. Global Retirement Partners LLC now owns 64 shares of the company's stock worth $39,000 after acquiring an additional 63 shares during the period. 67.15% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of brokerages have recently issued reports on DDS. Weiss Ratings downgraded Dillard's from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, June 23rd. Wall Street Zen raised shares of Dillard's from a "hold" rating to a "buy" rating in a research note on Sunday, July 12th. Zacks Research upgraded shares of Dillard's from a "hold" rating to a "strong-buy" rating in a report on Friday, May 29th. Finally, UBS Group lifted their price target 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. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $521.33.

Dillard's Stock Performance

NYSE DDS opened at $548.98 on Friday. The company has a market cap of $8.58 billion, a P/E ratio of 13.05 and a beta of 1.15. The company has a fifty day simple moving average of $560.17 and a 200 day simple moving average of $595.05. The company has a current ratio of 2.37, a quick ratio of 1.20 and a debt-to-equity ratio of 0.21. Dillard's, Inc. has a 12-month low of $449.64 and a 12-month high of $741.97.

Dillard's (NYSE:DDS - Get Free Report) last released its quarterly earnings data on Thursday, May 14th. The company reported $16.04 earnings per share for the quarter, topping the consensus estimate of $10.13 by $5.91. Dillard's had a net margin of 10.09% and a return on equity of 31.43%. 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 prior year, the company posted $10.39 earnings per share. The business's revenue was up 2.7% on a year-over-year basis. Sell-side analysts predict that Dillard's, Inc. will post 35.26 earnings per share for the current fiscal year.

Dillard's Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Tuesday, June 30th will be paid a dividend of $0.30 per share. The ex-dividend date is Tuesday, June 30th. This represents a $1.20 dividend on an annualized basis and a yield of 0.2%. Dillard's's payout ratio is 2.85%.

Insider Transactions at Dillard's

In related news, Director J C. Watts, Jr. sold 400 shares of the company's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $609.18, for a total transaction of $243,672.00. Following the completion of the sale, the director owned 10,150 shares in the company, valued at approximately $6,183,177. This represents a 3.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 34.80% of the company's stock.

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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