Dollar General (NYSE:DG) Stock Price Crosses Below 200-Day Moving Average - Time to Sell?

Key Points

• Dollar General shares fell below their 200-day moving average, trading as low as $125.15 versus the $126.27 average, a technical signal that may concern investors.
• The company faces significant legal and reputational risks after the FTC and attorneys general from 20 states sued over alleged price discrepancies and consumer overcharges. Dollar General denies the allegations and plans to defend itself.
• Despite the controversy, analysts remain mixed but generally constructive: the consensus rating is Hold with a $137.96 price target, while the latest quarter beat earnings and revenue expectations and showed 5.2% year-over-year revenue growth.

Dollar General Corporation (NYSE:DG - Get Free Report) passed below its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $126.27 and traded as low as $125.15. Dollar General shares last traded at $126.1010, with a volume of 2,454,893 shares changing hands.

Dollar General News Roundup

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

• Positive Sentiment: Dollar General rejected the allegations, calling the FTC’s case a “farce” and saying the claims are fundamentally untrue. The company also disputes the regulators’ estimates of potential overcharges and plans to defend itself. Dollar General asserts 20-state FTC lawsuit it's facing is a farce
• Positive Sentiment: JPMorgan raised its price target for DG to $178 from $176, providing a bullish signal that the firm continues to see longer-term upside despite the recent controversy. JPMorgan Adjusts Price Target on Dollar General to $178 From $176
• Neutral Sentiment: Separate coverage has highlighted broad traffic growth and ongoing investor debate over whether DG is undervalued. Those potential valuation supports are being weighed against the immediate legal and reputational risks. Is Broad Traffic Growth Keeping Dollar General in the Spotlight?
• Negative Sentiment: The FTC and attorneys general from 20 states sued Dollar General, citing thousands of failed price inspections, nearly 30,000 consumer complaints, and allegations that the company overcharged shoppers—particularly lower-income customers. The action could result in penalties, added compliance costs, and damage to DG’s low-price brand promise. FTC and 20 states sue Dollar General
• Negative Sentiment: The lawsuit follows a roughly $1.9 million New York settlement and has prompted reports of additional shareholder investigations. The legal escalation is weighing on sentiment and raises questions about customer trust, regulatory oversight, and future financial exposure. FTC, 20 states sue Dollar General for allegedly overcharging shoppers

Analyst Ratings Changes

Several equities research analysts recently commented on DG shares. The Goldman Sachs Group lifted their price target on shares of Dollar General from $128.00 to $141.00 and gave the stock a "neutral" rating in a research note on Friday, August 28th. Argus upped their price objective on shares of Dollar General from $165.00 to $170.00 and gave the company a "buy" rating in a research note on Friday, September 4th. Weiss Ratings raised Dollar General from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, September 10th. HSBC upgraded Dollar General from a "hold" rating to a "buy" rating and lifted their target price for the stock from $125.00 to $160.00 in a research report on Thursday, September 24th. Finally, BMO Capital Markets lifted their target price on Dollar General from $120.00 to $135.00 and gave the stock a "market perform" rating in a research report on Friday, August 28th. Twelve research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Dollar General presently has a consensus rating of "Hold" and a consensus target price of $137.96.

Dollar General Stock Performance

The stock has a market cap of $27.82 billion, a PE ratio of 16.40, a P/E/G ratio of 1.81 and a beta of 0.23. The firm's 50-day moving average is $125.95 and its 200 day moving average is $126.27. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.31 and a current ratio of 1.21.

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

Dollar General Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, October 20th. Investors of record on Tuesday, October 6th were given a $0.59 dividend. This represents a $2.36 annualized dividend and a yield of 1.9%. The ex-dividend date was Tuesday, October 6th. Dollar General's payout ratio is 30.69%.

Institutional Trading of Dollar General

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. B. Riley Wealth Advisors Inc. lifted its position in shares of Dollar General by 4.6% during the 3rd quarter. B. Riley Wealth Advisors Inc. now owns 2,286 shares of the company's stock valued at $273,000 after acquiring an additional 100 shares during the period. Ballentine Partners LLC grew its holdings in shares of Dollar General by 2.3% in the 2nd quarter. Ballentine Partners LLC now owns 5,470 shares of the company's stock worth $630,000 after acquiring an additional 122 shares during the period. Investment Research Partners LLC grew its holdings in shares of Dollar General by 6.2% in the 3rd quarter. Investment Research Partners LLC now owns 2,377 shares of the company's stock worth $284,000 after acquiring an additional 138 shares during the period. Arkfeld Wealth Strategies L.L.C. grew its holdings in shares of Dollar General by 4.8% in the 2nd quarter. Arkfeld Wealth Strategies L.L.C. now owns 3,060 shares of the company's stock worth $356,000 after acquiring an additional 139 shares during the period. Finally, SJS Investment Consulting Inc. increased its stake in Dollar General by 45.6% in the 1st quarter. SJS Investment Consulting Inc. now owns 447 shares of the company's stock valued at $53,000 after purchasing an additional 140 shares in the last quarter. 91.77% of the stock is owned by hedge funds and other institutional investors.

Dollar General Company Profile

Dollar General Corporation NYSE: DG is a discount retailer that operates stores offering everyday essentials at value-oriented prices. Its merchandise typically includes consumable products such as food, beverages, cleaning supplies, paper products, and personal-care items, along with seasonal goods, basic apparel, home products, and select health and beauty items.

The company primarily serves communities across the United States through a large network of neighborhood-focused stores, including locations in rural and suburban markets.

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