Dollar General (NYSE:DG) Trading Down 3.4% – Time to Sell?

Dollar General Co. (NYSE:DG)’s stock price traded down 3.4% during trading on Thursday . The company traded as low as $73.12 and last traded at $73.38. 318,906 shares changed hands during mid-day trading, a decline of 90% from the average session volume of 3,280,715 shares. The stock had previously closed at $75.94.

Wall Street Analyst Weigh In

Several research firms have commented on DG. Gordon Haskett upgraded shares of Dollar General from a “hold” rating to a “strong-buy” rating in a research report on Friday, November 8th. Morgan Stanley downgraded shares of Dollar General from an “overweight” rating to an “equal weight” rating and lowered their price target for the company from $170.00 to $100.00 in a report on Friday, August 30th. Barclays reduced their price objective on Dollar General from $154.00 to $102.00 and set an “overweight” rating on the stock in a research note on Tuesday, September 3rd. Truist Financial lowered their price objective on Dollar General from $94.00 to $83.00 and set a “hold” rating for the company in a research note on Friday, December 6th. Finally, JPMorgan Chase & Co. cut their target price on Dollar General from $97.00 to $82.00 and set a “neutral” rating on the stock in a research report on Tuesday, November 5th. One research analyst has rated the stock with a sell rating, fourteen have given a hold rating, eight have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $98.27.

Dollar General Price Performance

The company has a market cap of $16.31 billion, a PE ratio of 12.22, a price-to-earnings-growth ratio of 2.37 and a beta of 0.44. The company has a quick ratio of 0.15, a current ratio of 1.15 and a debt-to-equity ratio of 0.78. The firm has a 50 day simple moving average of $78.68 and a 200-day simple moving average of $100.16.

Dollar General (NYSE:DG) last issued its quarterly earnings data on Thursday, December 5th. The company reported $0.89 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.97 by ($0.08). Dollar General had a return on equity of 18.85% and a net margin of 3.33%. The firm had revenue of $10.18 billion during the quarter, compared to analysts’ expectations of $10.14 billion. During the same period in the previous year, the firm earned $1.26 EPS. The firm’s quarterly revenue was up 5.0% on a year-over-year basis. As a group, research analysts predict that Dollar General Co. will post 5.77 earnings per share for the current fiscal year.

Dollar General Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 21st. Stockholders of record on Tuesday, January 7th will be issued a dividend of $0.59 per share. The ex-dividend date of this dividend is Tuesday, January 7th. This represents a $2.36 annualized dividend and a dividend yield of 3.18%. Dollar General’s dividend payout ratio is presently 38.88%.

Insider Buying and Selling

In other Dollar General news, EVP Emily C. Taylor sold 4,740 shares of the company’s stock in a transaction that occurred on Friday, December 13th. The shares were sold at an average price of $77.44, for a total transaction of $367,065.60. Following the transaction, the executive vice president now owns 15,575 shares in the company, valued at approximately $1,206,128. This represents a 23.33 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.49% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of DG. Wilmington Savings Fund Society FSB acquired a new stake in shares of Dollar General in the third quarter worth $33,000. Studio Investment Management LLC grew its position in Dollar General by 117.7% during the 2nd quarter. Studio Investment Management LLC now owns 283 shares of the company’s stock worth $37,000 after purchasing an additional 153 shares during the period. Strategic Financial Concepts LLC purchased a new position in shares of Dollar General during the 2nd quarter valued at about $37,000. Quarry LP acquired a new position in shares of Dollar General in the 2nd quarter valued at about $46,000. Finally, Pathway Financial Advisers LLC boosted its stake in shares of Dollar General by 30.6% in the second quarter. Pathway Financial Advisers LLC now owns 376 shares of the company’s stock worth $50,000 after buying an additional 88 shares during the last quarter. 91.77% of the stock is owned by institutional investors and hedge funds.

About Dollar General

Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, disinfectants, and laundry products; packaged food comprising cereals, pasta, canned soups, fruits and vegetables, condiments, spices, sugar, and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer, and wine.