Dillard's (NYSE:DDS) Stock Breaks Above 200 Day Moving Average - Here's What Happened

Key Points

• Dillard’s shares broke above their 200-day moving average, reaching $677.50 and last trading at $673.64, compared with a 200-day average of $598.16.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating and an average price target of $545.67, well below its recent trading price.
• Dillard’s reported quarterly EPS of $6.25, surpassing the $4.29 consensus estimate, and declared a $0.30 quarterly dividend. Hedge funds and other institutional investors own approximately 67.15% of the company.

Dillard's, Inc. (NYSE:DDS - Get Free Report)'s share price crossed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $598.16 and traded as high as $677.50. Dillard's shares last traded at $673.64, with a volume of 58,134 shares.

Analysts Set New Price Targets

A number of brokerages have weighed in on DDS. Weiss Ratings lowered Dillard's from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, September 8th. Zacks Research downgraded Dillard's from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 27th. Wall Street Zen lowered Dillard's from a "buy" rating to a "hold" rating in a report on Saturday, September 12th. JPMorgan Chase & Co. boosted their price objective on Dillard's from $496.00 to $519.00 and gave the stock an "underweight" rating in a report on Monday, August 17th. Finally, UBS Group upped their price objective on shares of Dillard's from $465.00 to $468.00 and gave the stock a "sell" rating in a research report on Monday, August 17th. Three investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and an average target price of $545.67.

Dillard's Price Performance

The firm's 50-day moving average is $641.63 and its 200-day moving average is $598.16. The company has a market capitalization of $10.52 billion, a PE ratio of 15.43 and a beta of 1.11. The company has a quick ratio of 1.58, a current ratio of 3.03 and a debt-to-equity ratio of 0.16.

Dillard's (NYSE:DDS - Get Free Report) last released its earnings results on Thursday, August 13th. The company reported $6.25 EPS for the quarter, beating analysts' consensus estimates of $4.29 by $1.96. Dillard's had a return on equity of 31.88% and a net margin of 10.48%. The business had revenue of $1.53 billion for the quarter, compared to analysts' expectations of $1.52 billion. Equities analysts predict that Dillard's, Inc. will post 35.50 earnings per share for the current fiscal year.

Dillard's Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Wednesday, September 30th will be issued 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 is Wednesday, September 30th. Dillard's's dividend payout ratio is presently 2.75%.

Hedge Funds Weigh In On Dillard's

A number of large investors have recently modified their holdings of DDS. Wedge Capital Management L L P NC boosted its holdings in Dillard's by 6.4% during the 2nd quarter. Wedge Capital Management L L P NC now owns 65,318 shares of the company's stock valued at $34,515,000 after acquiring an additional 3,907 shares during the period. Monument Capital Management purchased a new position in Dillard's in the 3rd quarter worth approximately $2,675,000. Wellington Management Group LLP purchased a new position in Dillard's in the 2nd quarter worth approximately $1,726,000. Squarepoint Ops LLC increased its stake in Dillard's by 101.3% in the 2nd quarter. Squarepoint Ops LLC now owns 33,581 shares of the company's stock worth $17,745,000 after purchasing an additional 16,901 shares during the period. Finally, Empowered Funds LLC lifted its position in Dillard's by 593.9% in the first quarter. Empowered Funds LLC now owns 3,386 shares of the company's stock valued at $1,937,000 after purchasing an additional 2,898 shares during the last quarter. 67.15% of the stock is owned by hedge funds and other institutional investors.

About Dillard's

Dillard's, Inc is an American department store company that sells a broad selection of fashion apparel, accessories, cosmetics, footwear, and home furnishings. Its merchandise is offered through department stores and its e-commerce platform, serving customers seeking national and private-label brands across a range of product categories.

The company was founded in 1938 by William T. Dillard and is headquartered in Little Rock, Arkansas. Over time, Dillard's expanded through the acquisition and development of department stores, establishing a strong presence in the Southern, Southwestern, and Midwestern United States.

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