Dollar General (NYSE:DG) Issues Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Dollar General (NYSE:DG – Get Rating) issued its earnings results on Thursday. The company reported $2.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.94 by $0.02, Briefing.com reports. Dollar General had a net margin of 6.49% and a return on equity of 38.43%. The company had revenue of $10.20 billion for the quarter, compared to analysts’ expectations of $10.24 billion. During the same quarter last year, the company posted $2.57 earnings per share. The firm’s quarterly revenue was up 17.9% on a year-over-year basis. Dollar General updated its FY 2023 guidance to $11.11-$11.32 EPS.

Dollar General Stock Down 1.5 %

Shares of DG traded down $3.26 during midday trading on Friday, hitting $208.83. 7,689,851 shares of the company’s stock traded hands, compared to its average volume of 2,101,594. Dollar General has a 1 year low of $183.25 and a 1 year high of $262.20. The firm’s fifty day moving average is $226.41 and its 200-day moving average is $239.17. The company has a current ratio of 1.23, a quick ratio of 0.13 and a debt-to-equity ratio of 0.98. The stock has a market capitalization of $46.69 billion, a price-to-earnings ratio of 20.29, a price-to-earnings-growth ratio of 1.74 and a beta of 0.34.

Dollar General Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 25th. Stockholders of record on Tuesday, April 11th will be issued a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a dividend yield of 1.13%. The ex-dividend date is Monday, April 10th. This is a positive change from Dollar General’s previous quarterly dividend of $0.55. Dollar General’s dividend payout ratio is currently 21.38%.

Analyst Upgrades and Downgrades

Several research firms have weighed in on DG. JPMorgan Chase & Co. reiterated a “focus list” rating and issued a $242.00 price target (down from $289.00) on shares of Dollar General in a research report on Thursday, January 19th. Credit Suisse Group initiated coverage on shares of Dollar General in a report on Monday, December 19th. They issued a “neutral” rating and a $260.00 price target on the stock. Morgan Stanley dropped their price objective on shares of Dollar General from $255.00 to $235.00 and set an “overweight” rating for the company in a research note on Friday, February 24th. BMO Capital Markets dropped their price objective on shares of Dollar General from $255.00 to $230.00 in a research note on Friday. Finally, Piper Sandler dropped their price objective on shares of Dollar General from $288.00 to $275.00 and set an “overweight” rating for the company in a research note on Tuesday, February 28th. Seven equities research analysts have rated the stock with a hold rating, eight have given a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $250.50.

Insider Buying and Selling

In related news, Director Warren F. Bryant sold 1,951 shares of the firm’s stock in a transaction on Wednesday, January 4th. The stock was sold at an average price of $243.93, for a total value of $475,907.43. Following the completion of the transaction, the director now owns 38,269 shares in the company, valued at approximately $9,334,957.17. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.73% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Dollar General

A number of institutional investors have recently modified their holdings of the business. First Manhattan Co. lifted its stake in Dollar General by 447.4% in the 4th quarter. First Manhattan Co. now owns 104 shares of the company’s stock valued at $26,000 after buying an additional 85 shares in the last quarter. Financial Freedom LLC purchased a new position in Dollar General in the 4th quarter valued at about $26,000. Atlas Capital Advisors LLC purchased a new position in Dollar General in the 2nd quarter valued at about $32,000. Covestor Ltd lifted its stake in Dollar General by 156.4% in the 1st quarter. Covestor Ltd now owns 418 shares of the company’s stock valued at $93,000 after buying an additional 255 shares in the last quarter. Finally, Evergreen Capital Management LLC purchased a new position in Dollar General in the 1st quarter valued at about $212,000. 90.73% of the stock is currently owned by institutional investors and hedge funds.

Dollar General Company Profile

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Dollar General Corp. engages in the operation of merchandise stores. Its offerings include food, snacks, health and beauty aids, cleaning supplies, basic apparel, housewares, and seasonal items. It sells brands including Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle, Kimberly-Clark, Kellogg’s, General Mills, and PepsiCo The company was founded by J.