Morgan Stanley Has Lowered Expectations for Dollar General (NYSE:DG) Stock Price

Key Points

• Morgan Stanley cut its price target on Dollar General from $160 to $150 and kept an "equal weight" rating, implying roughly a 10.9% upside from the prior close.
• Dollar General topped Q4 expectations (EPS $1.93 vs. $1.57; revenue $10.91B vs. $10.78B) but issued a cautious FY2026 outlook (guidance ~7.10–7.35 EPS) that weighed on the stock.
• Analysts are mixed—MarketBeat shows a consensus "Hold" with an average price target of about $145.48—and insiders sold roughly 19,558 shares (~$2.64M) in the last quarter.

Dollar General (NYSE:DG - Get Free Report) had its price target reduced by analysts at Morgan Stanley from $160.00 to $150.00 in a report issued on Friday,Benzinga reports. The firm presently has an "equal weight" rating on the stock. Morgan Stanley's price objective points to a potential upside of 10.94% from the company's previous close.

DG has been the subject of a number of other research reports. Telsey Advisory Group increased their target price on shares of Dollar General from $130.00 to $140.00 and gave the company a "market perform" rating in a research report on Monday. Rothschild & Co Redburn upgraded shares of Dollar General to a "strong sell" rating in a research report on Wednesday, February 25th. Wall Street Zen raised shares of Dollar General from a "hold" rating to a "buy" rating in a research note on Saturday, December 6th. Citigroup raised their price objective on shares of Dollar General from $112.00 to $138.00 and gave the company a "neutral" rating in a research note on Monday, December 8th. Finally, Jefferies Financial Group reissued a "buy" rating and set a $170.00 target price on shares of Dollar General in a report on Thursday. Fourteen analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $145.48.

Dollar General Stock Performance

Dollar General stock traded down $0.75 during mid-day trading on Friday, hitting $135.20. 823,761 shares of the company's stock traded hands, compared to its average volume of 3,135,867. The company has a quick ratio of 0.24, a current ratio of 1.17 and a debt-to-equity ratio of 0.63. Dollar General has a one year low of $77.52 and a one year high of $158.23. The firm has a 50 day moving average price of $147.80 and a 200 day moving average price of $123.48. The company has a market cap of $29.76 billion, a PE ratio of 23.39, a price-to-earnings-growth ratio of 2.39 and a beta of 0.23.

Dollar General (NYSE:DG - Get Free Report) last released its quarterly earnings results on Thursday, March 12th. The company reported $1.93 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.57 by $0.36. The company had revenue of $10.91 billion during the quarter, compared to analysts' expectations of $10.78 billion. Dollar General had a return on equity of 18.59% and a net margin of 3.03%.The company's revenue for the quarter was up 5.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.87 earnings per share. Dollar General has set its FY 2026 guidance at 7.100-7.35 EPS. On average, equities analysts forecast that Dollar General will post 5.75 EPS for the current year.

Insider Transactions at Dollar General

In related news, EVP Roderick J. West sold 2,282 shares of the business's stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $133.35, for a total value of $304,304.70. Following the sale, the executive vice president directly owned 36,108 shares in the company, valued at $4,815,001.80. The trade was a 5.94% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Rhonda Taylor sold 7,500 shares of the stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $134.89, for a total transaction of $1,011,675.00. Following the sale, the executive vice president directly owned 73,492 shares of the company's stock, valued at approximately $9,913,335.88. This represents a 9.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 19,558 shares of company stock valued at $2,638,868 in the last quarter. Insiders own 0.56% of the company's stock.

Institutional Investors Weigh In On Dollar General

Large investors have recently modified their holdings of the stock. Elevation Point Wealth Partners LLC acquired a new position in shares of Dollar General in the 2nd quarter worth $25,000. Caldwell Trust Co purchased a new stake in shares of Dollar General during the second quarter valued at $25,000. Fideuram Asset Management Ireland dac acquired a new position in shares of Dollar General in the 4th quarter valued at $25,000. Caitong International Asset Management Co. Ltd boosted its position in shares of Dollar General by 4,550.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 186 shares of the company's stock valued at $25,000 after purchasing an additional 182 shares during the period. Finally, Root Financial Partners LLC purchased a new position in Dollar General in the 3rd quarter worth about $26,000. 91.77% of the stock is owned by institutional investors.

Key Dollar General News

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

• Positive Sentiment: Q4 beat on top and bottom lines — stronger traffic, comp sales and margin expansion drove a clear earnings beat that validates the company’s turnaround actions. DG Q4 Earnings Transcript
• Positive Sentiment: Operational momentum — management highlighted margin improvement, store rationalization/remodels and cost controls that should support higher profitability going forward. Earnings Call Highlights: Margin Momentum
• Positive Sentiment: Digital and engagement gains — accelerating app adoption (reported ~7M users) and initiatives like DG Wellness/pOpshelf support longer-term traffic and basket growth. Dollar General Logs 7 Million App Users
• Neutral Sentiment: Capital-return stance — DG declared a quarterly dividend ($0.59) and is retaining buyback flexibility while it finishes inventory rationalization; supports income investors but is not growth-accretive short term. Press Release: FY2025 Results & Dividend
• Neutral Sentiment: Analysts remain cautious/neutral — several firms kept Hold ratings or trimmed targets, signaling upside is not yet fully priced despite the beat. Analyst: Hold Ratings
• Negative Sentiment: Guidance disappointment — management projected slower comparable/annual sales growth for fiscal 2026 (management cited muted comps and cautious outlook), which overshadowed the quarterly beat and pressured the stock. Reuters: Forecasts Below Estimates
• Negative Sentiment: Market reaction & macro/competitive risks — investors punished the stock after the mixed message (beat + weak outlook); analysts flagged slower profit growth and rising competitive pressure from Walmart/online channels. Fool: Why Stock Isn’t Taking Off

Dollar General Company 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.

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