Dillard’s (DDS) Lifted to “Buy” at Bank of America

Bank of America upgraded shares of Dillard’s (NYSE:DDS) from an underperform rating to a buy rating in a research report sent to investors on Monday morning, MarketBeat reports. The firm currently has $89.00 target price on the stock, up from their previous target price of $77.37.

Several other equities analysts have also recently weighed in on DDS. ValuEngine upgraded Dillard’s from a hold rating to a buy rating in a report on Friday, February 2nd. TheStreet cut Dillard’s from a b rating to a c+ rating in a report on Thursday, May 17th. Telsey Advisory Group restated an outperform rating and issued a $83.00 price objective (up previously from $72.00) on shares of Dillard’s in a report on Wednesday, February 28th. JPMorgan Chase & Co. restated an underweight rating on shares of Dillard’s in a report on Tuesday, February 27th. Finally, Zacks Investment Research cut Dillard’s from a strong-buy rating to a hold rating in a report on Tuesday, May 1st. Two equities research analysts have rated the stock with a sell rating, one has issued a hold rating and four have given a buy rating to the company’s stock. Dillard’s currently has a consensus rating of Hold and an average price target of $69.80.

Dillard’s opened at $77.33 on Monday, MarketBeat reports. The stock has a market cap of $2.28 billion, a price-to-earnings ratio of 16.11 and a beta of 1.09. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.60 and a quick ratio of 0.21. Dillard’s has a 1 year low of $48.20 and a 1 year high of $88.51.

Dillard’s (NYSE:DDS) last released its earnings results on Thursday, May 17th. The company reported $2.89 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $2.77 by $0.12. The firm had revenue of $1.46 billion during the quarter, compared to analysts’ expectations of $1.45 billion. Dillard’s had a return on equity of 9.45% and a net margin of 3.65%. The company’s revenue was up 2.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.12 EPS. sell-side analysts forecast that Dillard’s will post 6.05 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 6th. Stockholders of record on Friday, June 29th will be issued a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 0.52%. The ex-dividend date of this dividend is Thursday, June 28th. Dillard’s’s payout ratio is 8.33%.

Dillard’s declared that its Board of Directors has authorized a stock buyback plan on Thursday, March 1st that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

In other news, Director James I. Freeman sold 8,357 shares of the firm’s stock in a transaction dated Tuesday, March 13th. The stock was sold at an average price of $84.05, for a total value of $702,405.85. Following the completion of the transaction, the director now owns 270,224 shares in the company, valued at approximately $22,712,327.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 19.10% of the stock is owned by company insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in DDS. Cornerstone Capital Management Holdings LLC. bought a new position in Dillard’s during the fourth quarter worth about $174,000. MANA Advisors LLC bought a new position in Dillard’s during the fourth quarter worth about $200,000. GSA Capital Partners LLP bought a new position in Dillard’s during the first quarter worth about $201,000. Macquarie Group Ltd. bought a new position in Dillard’s during the fourth quarter worth about $210,000. Finally, ING Groep NV bought a new position in Dillard’s during the first quarter worth about $251,000. Institutional investors own 87.45% of the company’s stock.

About Dillard’s

Dillard's, Inc operates as fashion apparel, cosmetics, and home furnishing retailer in the United States. It operates through two segments, Retail Operations and Construction. The company's stores offer a selection of merchandise, including fashion apparel for women, men, and children; accessories; cosmetics; home furnishings; and other consumer goods.

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