Dollar General (NYSE:DG) Shares Climb 4.3% - Still a Buy?

Key Points

• Dollar General shares rose 4.3% to about $130.33, although trading volume was significantly below average.
• Analyst sentiment has improved, with several firms upgrading the stock to Buy; however, the overall consensus remains Hold, with a $137.96 average price target.
• The company reported better-than-expected quarterly earnings and revenue growth, declared a $0.59 quarterly dividend yielding about 1.8%, and remains heavily owned by institutional investors.

Shares of Dollar General Corporation (NYSE:DG - Get Free Report) traded up 4.3% during trading on Wednesday. The company traded as high as $129.40 and last traded at $130.3280. Approximately 930,379 shares were traded during mid-day trading, a decline of 69% from the average daily volume of 3,000,898 shares. The stock had previously closed at $125.00.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. HSBC raised shares of Dollar General from a "hold" rating to a "buy" rating and boosted their price objective for the company from $125.00 to $160.00 in a research report on Thursday, September 24th. Guggenheim reaffirmed a "buy" rating and issued a $140.00 target price on shares of Dollar General in a research report on Monday, August 31st. Gordon Haskett raised shares of Dollar General from a "hold" rating to a "buy" rating and set a $140.00 target price on the stock in a research note on Tuesday, October 6th. BMO Capital Markets boosted their price target on shares of Dollar General from $120.00 to $135.00 and gave the company a "market perform" rating in a research report on Friday, August 28th. Finally, Wall Street Zen upgraded shares of Dollar General from a "hold" rating to a "buy" rating in a research report on Saturday, August 29th. Twelve equities research analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Dollar General currently has an average rating of "Hold" and a consensus price target of $137.96.

Dollar General Stock Up 4.0%

The stock has a 50 day simple moving average of $124.21 and a 200-day simple moving average of $118.88. The firm has a market cap of $28.69 billion, a PE ratio of 16.93, a PEG ratio of 1.73 and a beta of 0.23. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.21 and a quick ratio of 0.31.

Dollar General (NYSE:DG - Get Free Report) last released its earnings results on Thursday, August 27th. The company reported $2.48 EPS for the quarter, topping analysts' consensus estimates of $2.01 by $0.47. Dollar General had a return on equity of 18.93% and a net margin of 3.90%. The firm had revenue of $11.29 billion for the quarter, compared to analysts' expectations of $11.20 billion. During the same period in the prior year, the firm posted $1.86 earnings per share. The company's quarterly revenue was up 5.2% on a year-over-year basis. Dollar General has set its FY 2026 guidance at 7.800-8.000 EPS. Sell-side analysts predict that Dollar General Corporation will post 7.69 EPS for the current fiscal year.

Dollar General Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 20th. Investors of record on Tuesday, October 6th will be paid a $0.59 dividend. The ex-dividend date is Tuesday, October 6th. This represents a $2.36 dividend on an annualized basis and a yield of 1.8%. Dollar General's payout ratio is presently 30.69%.

Institutional Trading of Dollar General

Institutional investors and hedge funds have recently bought and sold shares of the company. ABLE Financial Group LLC raised its holdings in Dollar General by 4.8% in the third quarter. ABLE Financial Group LLC now owns 5,019 shares of the company's stock worth $600,000 after buying an additional 228 shares during the last quarter. B. Riley Wealth Advisors Inc. raised its holdings in Dollar General by 4.6% in the 3rd quarter. B. Riley Wealth Advisors Inc. now owns 2,286 shares of the company's stock worth $273,000 after acquiring an additional 100 shares during the last quarter. Krilogy Financial LLC raised its holdings in Dollar General by 11.3% in the 3rd quarter. Krilogy Financial LLC now owns 11,149 shares of the company's stock worth $1,411,000 after acquiring an additional 1,133 shares during the last quarter. Fluent Financial LLC purchased a new position in Dollar General in the 3rd quarter worth approximately $1,436,000. Finally, NorthCrest Asset Manangement LLC lifted its position in Dollar General by 6.1% in the 3rd quarter. NorthCrest Asset Manangement LLC now owns 15,286 shares of the company's stock valued at $1,900,000 after acquiring an additional 883 shares in the last quarter. 91.77% of the stock is currently owned by institutional investors.

Dollar General Company Profile

Dollar General Corporation NYSE: DG operates a chain of discount retail stores focused on providing everyday goods at affordable prices. Its merchandise includes consumable products such as food, beverages, cleaning supplies, paper products, and personal-care items, along with seasonal goods, home products, basic apparel, and select health and beauty products. Many stores also offer tobacco products, prepaid wireless services, and other convenience-oriented items.

The company primarily serves rural and suburban communities in the United States through a network of small-format stores located across most U.S.

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