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

Dollar General Co. (NYSE:DG)’s share price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $74.85, but opened at $78.62. Dollar General shares last traded at $79.90, with a volume of 1,388,907 shares.

The company reported $1.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.50 by $0.18. Dollar General had a return on equity of 18.85% and a net margin of 3.33%.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on DG. UBS Group dropped their target price on Dollar General from $108.00 to $95.00 and set a “buy” rating on the stock in a research report on Thursday, March 6th. The Goldman Sachs Group dropped their target price on Dollar General from $104.00 to $93.00 and set a “buy” rating on the stock in a research report on Thursday, January 23rd. Bernstein Bank decreased their price target on Dollar General from $98.00 to $94.00 in a research note on Friday, November 15th. Wells Fargo & Company decreased their price target on Dollar General from $90.00 to $80.00 and set an “equal weight” rating for the company in a research note on Thursday, December 5th. Finally, Jefferies Financial Group decreased their price target on Dollar General from $110.00 to $90.00 and set a “buy” rating for the company in a research note on Friday, November 15th. One research analyst has rated the stock with a sell rating, fifteen have assigned a hold rating and eight have assigned a buy rating to the stock. According to MarketBeat.com, Dollar General currently has a consensus rating of “Hold” and an average price target of $95.09.

Insider Activity

In other news, Director Michael M. Calbert sold 6,000 shares of the company’s stock in a transaction on Tuesday, December 31st. The stock was sold at an average price of $75.27, for a total transaction of $451,620.00. Following the completion of the sale, the director now directly owns 120,322 shares of the company’s stock, valued at $9,056,636.94. This represents a 4.75 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Emily C. Taylor sold 4,740 shares of the company’s stock in a transaction on Friday, December 13th. The shares were sold at an average price of $77.44, for a total value of $367,065.60. Following the sale, the executive vice president now directly owns 15,575 shares of the company’s stock, valued at approximately $1,206,128. This represents a 23.33 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.49% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Dollar General

Hedge funds have recently bought and sold shares of the business. Principal Financial Group Inc. raised its stake in shares of Dollar General by 2.6% during the 3rd quarter. Principal Financial Group Inc. now owns 253,053 shares of the company’s stock worth $21,401,000 after purchasing an additional 6,372 shares in the last quarter. CWA Asset Management Group LLC acquired a new stake in shares of Dollar General during the 3rd quarter worth approximately $326,000. Sigma Planning Corp lifted its position in shares of Dollar General by 72.8% during the 3rd quarter. Sigma Planning Corp now owns 4,299 shares of the company’s stock worth $364,000 after buying an additional 1,811 shares during the period. GSA Capital Partners LLP bought a new position in Dollar General in the 3rd quarter valued at $212,000. Finally, Sumitomo Mitsui Trust Group Inc. raised its position in Dollar General by 1.8% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 480,824 shares of the company’s stock valued at $40,663,000 after purchasing an additional 8,388 shares during the last quarter. 91.77% of the stock is owned by hedge funds and other institutional investors.

Dollar General Stock Performance

The firm has a market cap of $17.68 billion, a P/E ratio of 13.33, a PEG ratio of 2.18 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 fifty day moving average of $73.52 and a 200-day moving average of $78.69.

Dollar General Company Profile

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.