Dillard's (NYSE:DDS) Stock Price Down 4.8% - Should You Sell?

Key Points

• Dillard’s shares fell 4.8% to approximately $662.18, on unusually light trading volume—about 91% below the average daily volume.
• Analyst sentiment is cautious: three analysts rate the stock “Hold” and two rate it “Sell,” resulting in a consensus “Reduce” rating and a $545.67 target price.
• The company recently exceeded quarterly earnings expectations, reporting $6.25 in EPS versus the $4.29 consensus estimate, while maintaining a $0.30 quarterly dividend with a 0.2% yield.

Dillard's, Inc. (NYSE:DDS - Get Free Report)'s stock price dropped 4.8% during trading on Tuesday. The stock traded as low as $665.94 and last traded at $662.1780. Approximately 12,267 shares traded hands during mid-day trading, a decline of 91% from the average daily volume of 137,631 shares. The stock had previously closed at $695.35.

Analyst Ratings Changes

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

Dillard's Price Performance

The company has a quick ratio of 1.58, a current ratio of 3.03 and a debt-to-equity ratio of 0.16. The stock has a market cap of $10.38 billion, a P/E ratio of 15.22 and a beta of 1.11. The company's 50 day moving average price is $631.97 and its 200-day moving average price is $591.71.

Dillard's (NYSE:DDS - Get Free Report) last issued its quarterly earnings data on Thursday, August 13th. The company reported $6.25 earnings per share (EPS) for the quarter, topping 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 company had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.52 billion. As a group, sell-side analysts expect that Dillard's, Inc. will post 35.5 earnings per share for the current year.

Dillard's Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Wednesday, September 30th will be given a dividend of $0.30 per share. The ex-dividend date is Wednesday, September 30th. This represents a $1.20 annualized dividend and a dividend yield of 0.2%. Dillard's's dividend payout ratio is presently 2.75%.

Institutional Investors Weigh In On Dillard's

A number of hedge funds have recently added to or reduced their stakes in DDS. Norges Bank purchased a new position in shares of Dillard's during the fourth quarter worth about $36,598,000. Arrowstreet Capital Limited Partnership lifted its stake in shares of Dillard's by 1,331.6% in the first quarter. Arrowstreet Capital Limited Partnership now owns 40,715 shares of the company's stock worth $23,293,000 after buying an additional 37,871 shares in the last quarter. Renaissance Technologies LLC boosted its holdings in shares of Dillard's by 18.7% during the 1st quarter. Renaissance Technologies LLC now owns 142,180 shares of the company's stock valued at $81,343,000 after acquiring an additional 22,400 shares during the last quarter. Squarepoint Ops LLC grew its position in Dillard's by 101.3% during the second quarter. Squarepoint Ops LLC now owns 33,581 shares of the company's stock valued at $17,745,000 after buying an additional 16,901 shares during the period. Finally, Gotham Asset Management LLC grew its stake in shares of Dillard's by 10.7% during the 4th quarter. Gotham Asset Management LLC now owns 73,642 shares of the company's stock valued at $44,652,000 after acquiring an additional 7,123 shares during the period. 67.15% of the stock is currently owned by institutional investors.

Dillard's Company Profile

Dillard's, Inc is an American department store retailer that sells fashion apparel, accessories, cosmetics, home furnishings and other merchandise. Its offerings include products for women, men and children, as well as footwear, jewelry, beauty products and home goods. The company also operates an e-commerce business through its website.

Founded in 1938 by William T. Dillard, the company grew from a single store into a national department store chain through organic expansion and acquisitions.

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