Dollar General, the popular discount retailer, has recently released its quarterly earnings report for the period ending June 1st, 2023. The report reveals several key financial figures and developments that have garnered attention from market analysts and investors alike.
During this quarter, Dollar General reported an earnings per share (EPS) of $2.34, falling slightly short of analysts’ consensus estimates by $0.04. Despite this shortfall, the company’s revenue for the period was $9.34 billion, demonstrating a steady growth rate of 6.8% in comparison to the same quarter last year. Analysts had projected revenue expectations of $9.47 billion.
This data showcases Dollar General’s ability to maintain a solid financial foundation despite facing challenges within the retail industry. The net margin for this quarter stood at 6.19%, reflecting profitability in relation to sales revenue generated during the period. Furthermore, Dollar General exhibited an impressive return on equity (ROE) rate of 40.03%, indicating efficient use of shareholders’ investments to generate profit.
One interesting development surrounding Dollar General is a recent insider trading activity involving two prominent figures within the company – Director Michael M. Calbert and CEO Jeffery Owen – both acquiring shares of Dollar General stock through separate transactions in early June.
Director Calbert purchased 2,500 shares at an average cost of $155.25 per share, resulting in a total value of $388,125.00. As a result of this acquisition, his direct ownership stake now amounts to approximately 116,682 shares valued at $18,114,880.50.
CEO Owen also made a notable contribution to his personal holdings by buying 1,500 shares at an average price of $157.86 per share during the same period as Director Calbert’s transaction for a total sum of $236,790.00.With this latest purchase added to his existing portfolio, Owen now possesses 55,720 shares within the company with an estimated value of $8,795,959.20.
These insider acquisitions demonstrate a vote of confidence in Dollar General’s prospects by the company’s top executives. Such actions often signal belief in future growth and profitability, which can instill investor confidence as well.
In accordance with regulations set forth by the Securities & Exchange Commission (SEC), both Director Calbert and CEO Owen promptly disclosed their transactions through legal filings accessible on the SEC website. Transparency is highly valued in corporate environments, ensuring that investors and stakeholders have access to pertinent information regarding trading activities involving key individuals within a company.
It is worth noting that these insider purchases represent only a fraction of the overall ownership of Dollar General stock. However, they do provide valuable insights into the sentiment and commitment of those who have an intricate understanding of the company’s affairs. Investors may interpret such moves as an endorsement of potential future success for Dollar General.
As market observers continue to scrutinize Dollar General’s financial performance and assess its viability within the retail landscape, these recent developments further fuel speculation regarding its long-term prospects. While challenges persist within the industry, Dollar General remains resilient and has positioned itself as a noteworthy player in providing affordable options to consumers across various markets.
Investors will closely monitor upcoming quarters’ earnings reports to gain additional clarity on Dollar General’s trajectory. As August 14th, 2023 marks an important reference date for this article, it becomes even more imperative for investors to evaluate new data as it becomes available and weigh potential investment opportunities accordingly.
Dollar General Corporation
Updated on: 01/03/2024
Debt to equity ratio: Strong Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
7:00 PM (UTC)
Date:31 January, 2024
|Analyst / firm
Dollar General Sees Decrease in Q2 2024 Earnings Estimates, but Remains an Attractive Investment Option
Dollar General Co. (NYSE:DG), one of the largest retail chains in the United States, recently saw a decrease in its Q2 2024 earnings estimates according to investment analysts at Atlantic Securities. The research report, issued to clients and investors on August 9th, projected that the company will post earnings of $2.53 per share for the quarter, down from their previous estimate of $2.56.
Atlantic Securities currently has a “Neutral” rating on Dollar General stock with a target price of $170.00. However, the consensus estimate for Dollar General’s full-year earnings for this year is $10.03 per share.
In addition to these estimates, Atlantic Securities also provided predictions for Dollar General’s future earnings. For FY2024, they estimate earnings at $9.82 EPS, followed by Q2 2025 at $2.78 EPS, FY2025 at $10.61 EPS, FY2026 at $11.72 EPS, and FY2027 at $12.92 EPS.
Dollar General has received attention from other research reports as well. Credit Suisse Group reduced their price target on Dollar General shares from $220 to $170 in June 2023. Meanwhile, OTR Global upgraded Dollar General to a “positive” rating and Wells Fargo & Company downgraded it from “overweight” to “equal weight,” reducing their target price from $178 to $165.
Argus also decreased their target price on Dollar General stock from $250 to $235 in June 2023, and BMO Capital Markets lowered theirs from $230 to $175 around the same time.
Currently, twelve analysts have given a hold rating on the stock, seven have given it a buy rating, and two have issued a strong buy rating for Dollar General based on data from Bloomberg.com.
In recent news about Dollar General, Director Michael M. Calbert purchased 2,500 shares of Dollar General stock on June 8th. The average cost per share was $155.25, totaling a value of $388,125. Following the purchase, Calbert now directly owns 116,682 shares of the company’s stock with a value of approximately $18,114,880.
Additionally, CEO Jeffery Owen bought 1,500 shares on June 6th at an average cost of $157.86 per share for a total transaction value of $236,790. Following this acquisition, Owen now owns 55,720 shares in Dollar General valued at around $8,795,959.
The recent acquisitions by insiders reflect their confidence in Dollar General’s potential growth and success.
Shares of Dollar General were traded at $165.74 on August 14th with a trading volume of 494,621 shares. The company’s 50-day moving average stands at $165.77 while its 200-day moving average is $199.73.
As for financials and market performance indicators, Dollar General has a debt-to-equity ratio of 1.18 and quick ratio of 0.12 as well as a current ratio of 1.32. Its market cap is currently valued at $36.35 billion with a PE ratio of 15.75 and a price-to-earnings-growth ratio of 2.11.
Despite the decrease in earnings estimates for Q2 2024 and fluctuations in target prices from various research reports, Dollar General remains committed to delivering solid performance and providing consistent returns to its shareholders.
On July 25th, the company announced a quarterly dividend that was paid to stockholders on July 11th. With an annualized dividend payout rate of $2.36 per share and a dividend yield of 1.42%, Dollar General continues to reward its investors.
Overall, while there may be some uncertainty surrounding Dollar General’s earnings estimates and stock performance, the recent insider acquisitions and the company’s commitment to dividends suggest that it remains an attractive investment option in the retail industry. Investors should keep a close eye on future developments and potential growth opportunities for Dollar General as it continues to navigate the evolving retail landscape.