Dollar General (NYSE:DG) Shares Gap Up After Earnings Beat

Shares of Dollar General Co. (NYSE:DG) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $97.17, but opened at $106.96. Dollar General shares last traded at $109.02, with a volume of 5,111,772 shares changing hands.

The company reported $1.78 EPS for the quarter, topping the consensus estimate of $1.46 by $0.32. Dollar General had a net margin of 3.33% and a return on equity of 18.85%. The company had revenue of $10.44 billion for the quarter, compared to the consensus estimate of $10.25 billion. During the same period in the previous year, the firm earned $1.65 earnings per share. The firm’s revenue for the quarter was up 5.3% on a year-over-year basis.

Dollar General Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 22nd. Shareholders of record on Tuesday, July 8th will be given a dividend of $0.59 per share. This represents a $2.36 dividend on an annualized basis and a yield of 2.09%. Dollar General’s payout ratio is currently 46.18%.

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Melius raised shares of Dollar General from a “hold” rating to a “buy” rating and set a $110.00 price objective on the stock in a research report on Tuesday, April 8th. Morgan Stanley boosted their price objective on shares of Dollar General from $80.00 to $85.00 and gave the company an “equal weight” rating in a research report on Monday, May 19th. Gordon Haskett raised shares of Dollar General from a “reduce” rating to an “accumulate” rating in a research report on Tuesday. Bank of America boosted their price objective on shares of Dollar General from $100.00 to $115.00 and gave the company a “buy” rating in a research report on Friday, May 23rd. Finally, Sanford C. Bernstein set a $120.00 target price on shares of Dollar General in a research report on Friday, May 23rd. Fourteen research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $98.96.

Insider Activity at Dollar General

In related news, EVP Emily C. Taylor sold 809 shares of the firm’s stock in a transaction that occurred on Friday, April 4th. The shares were sold at an average price of $94.72, for a total value of $76,628.48. Following the transaction, the executive vice president now owns 48,532 shares of the company’s stock, valued at approximately $4,596,951.04. This trade represents a 1.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 0.56% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Dollar General

A number of institutional investors and hedge funds have recently made changes to their positions in DG. First Eagle Investment Management LLC purchased a new position in shares of Dollar General in the fourth quarter worth approximately $399,433,000. ACR Alpine Capital Research LLC raised its stake in Dollar General by 8,426.1% during the 4th quarter. ACR Alpine Capital Research LLC now owns 4,041,471 shares of the company’s stock worth $306,424,000 after acquiring an additional 3,994,070 shares during the period. Norges Bank bought a new stake in Dollar General during the 4th quarter worth approximately $140,421,000. Two Sigma Investments LP raised its stake in Dollar General by 323.1% during the 4th quarter. Two Sigma Investments LP now owns 2,354,135 shares of the company’s stock worth $178,491,000 after acquiring an additional 1,797,776 shares during the period. Finally, Pacer Advisors Inc. raised its stake in Dollar General by 5,440.2% during the 1st quarter. Pacer Advisors Inc. now owns 1,582,569 shares of the company’s stock worth $139,155,000 after acquiring an additional 1,554,004 shares during the period. Hedge funds and other institutional investors own 91.77% of the company’s stock.

Dollar General Stock Performance

The company has a market cap of $24.78 billion, a P/E ratio of 18.56, a PEG ratio of 2.18 and a beta of 0.26. The business’s 50 day simple moving average is $93.33 and its 200 day simple moving average is $81.82. The company has a current ratio of 1.15, a quick ratio of 0.15 and a debt-to-equity ratio of 0.78.

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.