Investors Buy Shares of Dollar General (DG) on Weakness

Investors purchased shares of Dollar General Corp. (NYSE:DG) on weakness during trading on Monday. $74.62 million flowed into the stock on the tick-up and $43.04 million flowed out of the stock on the tick-down, for a money net flow of $31.58 million into the stock. Of all stocks tracked, Dollar General had the 29th highest net in-flow for the day. Dollar General traded down ($1.66) for the day and closed at $107.25

A number of brokerages have weighed in on DG. Zacks Investment Research downgraded shares of Dollar General from a “buy” rating to a “hold” rating in a research report on Monday, August 20th. Buckingham Research upped their price objective on shares of Dollar General from $95.00 to $107.00 and gave the stock a “neutral” rating in a research report on Monday, August 27th. Credit Suisse Group set a $108.00 price objective on shares of Dollar General and gave the stock a “hold” rating in a research report on Sunday, September 2nd. MKM Partners upped their price objective on shares of Dollar General to $117.00 and gave the stock a “buy” rating in a research report on Tuesday, August 28th. Finally, Wells Fargo & Co upped their price objective on shares of Dollar General from $113.00 to $118.00 and gave the stock an “outperform” rating in a research report on Wednesday, August 29th. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating, fifteen have assigned a buy rating and one has assigned a strong buy rating to the company. The company presently has a consensus rating of “Buy” and an average price target of $103.33.

The company has a current ratio of 1.55, a quick ratio of 0.21 and a debt-to-equity ratio of 0.44. The stock has a market capitalization of $29.39 billion, a price-to-earnings ratio of 23.89, a PEG ratio of 1.33 and a beta of 0.94.

Dollar General (NYSE:DG) last released its quarterly earnings results on Thursday, August 30th. The company reported $1.52 earnings per share for the quarter, topping the consensus estimate of $1.49 by $0.03. Dollar General had a net margin of 7.06% and a return on equity of 23.51%. The firm had revenue of $6.44 billion during the quarter, compared to the consensus estimate of $6.38 billion. During the same quarter in the prior year, the firm earned $1.10 EPS. The company’s revenue for the quarter was up 10.6% on a year-over-year basis. research analysts forecast that Dollar General Corp. will post 6.1 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 23rd. Investors of record on Tuesday, October 9th will be given a dividend of $0.29 per share. The ex-dividend date of this dividend is Friday, October 5th. This represents a $1.16 annualized dividend and a dividend yield of 1.08%. Dollar General’s dividend payout ratio (DPR) is presently 25.84%.

In related news, EVP Robert D. Ravener sold 22,440 shares of the company’s stock in a transaction dated Friday, September 7th. The shares were sold at an average price of $111.49, for a total transaction of $2,501,835.60. Following the completion of the transaction, the executive vice president now owns 50,747 shares in the company, valued at approximately $5,657,783.03. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, EVP Robert D. Ravener sold 10,000 shares of the company’s stock in a transaction dated Friday, June 22nd. The stock was sold at an average price of $100.03, for a total transaction of $1,000,300.00. Following the transaction, the executive vice president now owns 38,307 shares of the company’s stock, valued at approximately $3,831,849.21. The disclosure for this sale can be found here. 0.41% of the stock is owned by corporate insiders.

A number of hedge funds have recently added to or reduced their stakes in DG. Summit Trail Advisors LLC raised its holdings in Dollar General by 8,228.6% in the 1st quarter. Summit Trail Advisors LLC now owns 3,050,695 shares of the company’s stock valued at $3,051,000 after acquiring an additional 3,014,066 shares during the last quarter. Polen Capital Management LLC raised its holdings in Dollar General by 35.7% in the 1st quarter. Polen Capital Management LLC now owns 6,756,945 shares of the company’s stock valued at $632,112,000 after acquiring an additional 1,779,432 shares during the last quarter. Millennium Management LLC raised its holdings in Dollar General by 140.6% in the 2nd quarter. Millennium Management LLC now owns 1,345,577 shares of the company’s stock valued at $132,674,000 after acquiring an additional 786,382 shares during the last quarter. Caisse DE Depot ET Placement DU Quebec raised its holdings in Dollar General by 12.4% in the 2nd quarter. Caisse DE Depot ET Placement DU Quebec now owns 6,450,172 shares of the company’s stock valued at $635,987,000 after acquiring an additional 711,483 shares during the last quarter. Finally, Janus Henderson Group PLC raised its holdings in Dollar General by 182.7% in the 2nd quarter. Janus Henderson Group PLC now owns 1,040,981 shares of the company’s stock valued at $102,641,000 after acquiring an additional 672,761 shares during the last quarter. Institutional investors own 94.99% of the company’s stock.

About Dollar General (NYSE:DG)

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

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