July 14, 2023 – Jennison Associates LLC, a prominent investment firm, has recently announced a significant increase in its stake in Dollar General Co. (NYSE:DG), one of the leading discount retailers in the United States. According to the firm’s latest 13F filing with the Securities and Exchange Commission (SEC), Jennison Associates now owns 107,315 shares of Dollar General’s stock, representing an 8.5% increase from the previous quarter.
This boost in stake demonstrates Jennison Associates’ continued confidence in Dollar General’s performance and growth potential. The value of their holdings in Dollar General is estimated to be around $22,586,000, as of the most recent filing with the SEC.
In addition to this major development, Dollar General has recently declared its quarterly dividend. Shareholders on record as of July 11th will receive a dividend payment of $0.59 per share on Tuesday, July 25th. This translates into an annualized dividend of $2.36 per share and a dividend yield of 1.42%. The ex-dividend date for eligible shareholders is Monday, July 10th. With a current dividend payout ratio (DPR) standing at 22.24%, Dollar General maintains a strong commitment to returning value to its shareholders.
Interestingly enough, some notable transactions involving key executives have taken place within Dollar General recently. Director Todd J. Vasos sold an impressive amount of 27,327 shares on June 6th for approximately $4,280,774.55 at an average price of $156.65 per share. Following this sale, Vasos retains ownership of 118,635 shares valued at $18,584,172.75.
On the other hand, CEO Jeffery Owen demonstrated his confidence in Dollar General’s future prospects by personally purchasing an additional 1,500 shares on June 6th at an average cost of $157.86 per share, totaling $236,790.00. Owen now holds 55,720 shares in the company, valued at approximately $8,795,959.20.
These transactions by Dollar General’s top executives highlight their belief in the company’s strong performance and long-term growth prospects. As insiders continue to invest in the company’s stock and as Jennison Associates increases its stake, it sends a positive signal to investors that Dollar General remains a solid investment opportunity.
It is worth noting that all these transactions have been fully disclosed to the SEC and can be accessed through their website. Transparency and accountability are paramount within the investment landscape, ensuring that relevant information is readily available to all stakeholders.
While this recent surge in interest surrounding Dollar General may arouse curiosity from eager investors seeking opportunities for capital appreciation or dividend income, it is crucial to conduct thorough research and analysis before making any investment decisions. A comprehensive examination of a company’s financial performance, industry trends, and overall market conditions should be undertaken before diving into the intricacies of the stock market.
As we move forward into the second half of 2023, it will be interesting to observe how Dollar General capitalizes on its position as a major player in the discount retail sector and how investments from firms like Jennison Associates LLC further strengthen its position in the marketplace.
Dollar General Corporation
Updated on: 03/03/2024
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 Faces Changes in Shareholder Base and Mixed Analyst Sentiments
July 14, 2023 – Dollar General Co. (NYSE: DG), a leading discount retailer in the United States, has seen a series of changes in its position from various hedge funds and institutional investors in recent months. Concord Wealth Partners, a prominent financial firm, acquired new shares worth approximately $25,000 during the fourth quarter. Another significant player, First Manhattan Co., grew its stake in Dollar General by 447.4% during the same period, now owning 104 shares valued at $26,000 after acquiring an additional 85 shares.
Financial Freedom LLC and Capital Directions Investment Advisors LLC also entered the market during the fourth quarter with initial investments of $26,000 and $27,000 respectively. Additionally, Accurate Wealth Management LLC established a new position in Dollar General worth $27,000 during this time. It is important to note that institutional investors currently own approximately 90.02% of the company’s stock.
Amidst these developments within its shareholder base, Dollar General has been under scrutiny from analysts in recent months. Notably, Gordon Haskett downgraded its rating for Dollar General from “accumulate” to “hold” and lowered their target price for the company from $230.00 to $220.00 back in March of this year.
Further analyst reports have shown mixed sentiments towards the company’s performance. TheStreet downgraded its rating from “b-” to “c+” on June 1st while Atlantic Securities shifted its stance from “overweight” to “neutral” and set a target price of $170 for Dollar General on June 2nd.
Piper Sandler also reduced their outlook on Dollar General’s stock from “overweight” to “neutral,” revising their price objective downwards from $275.00 to $178.00 on June 1st as well.
Despite these mixed reviews, VNET Group maintains its positive outlook on Dollar General, reaffirming its rating in June. Overall, the stock has received a moderate buy rating from analysts, with thirteen stating “hold,” seven suggesting “buy,” and two issuing a strong buy recommendation. The consensus for the company’s stock stands at a target price of $202.71 based on Bloomberg data.
In terms of financial performance, Dollar General recently announced its quarterly dividend. Stockholders listed in record by July 11th will receive $0.59 per share in payouts on Tuesday, July 25th. This represents an annualized dividend of $2.36 and a yield of 1.42%. The ex-dividend date for this payout is Monday, July 10th.
As of Friday’s opening at $165.65, Dollar General boasts a market capitalization of $36.33 billion and maintains a price-to-earnings (PE) ratio of 15.61 along with a price-to-earnings-growth (PEG) ratio of 1.77 revealing promising future growth prospects. The company also holds a beta value of 0.28 indicating low volatility compared to the broader market index.
Examining Dollar General’s recent performance further, we find that the business exhibits stable moving averages with the 50-day simple moving average at $183.18 and the 200-day simple moving average at $209.89.
In terms of liquidity ratios, Dollar General has shown a quick ratio of 0.12 and current ratio of 1.32 during their latest financial reporting period ensuring sufficient resources to cover short-term obligations for efficient operations going forward.
On June 1st, Dollar General released its earnings results for the quarter indicating an EPS (earnings per share) figure of $2.34, slightly missing analysts’ consensus estimate by ($0.04). The reported net margin was recorded at 6.19%, while return on equity stood at an impressive figure of 40.03%. The company generated $9.34 billion in revenue during the quarter, slightly below the consensus estimate of $9.47 billion. However, it demonstrated a year-over-year increase of 6.8% in revenue growth.
Sell-side analysts anticipate Dollar General Co. to post an EPS of 10.03 for the current fiscal year.
In conclusion, while hedge funds and institutional investors have made notable changes to their positions in Dollar General, the company has encountered mixed reviews from analysts. Market experts have downgraded its rating and revised target prices downwards, despite some positive sentiments from VNET Group. Nonetheless, Dollar General remains committed to rewarding its shareholders by declaring a quarterly dividend with a healthy yield of 1.42%.
Despite recent dips in stock value, Dollar General still holds a stable market cap and exhibits promising figures in terms of PE ratio and PEG ratio relative to future growth expectations. As the discount retail industry continues to evolve under changing market conditions, investors will carefully monitor Dollar General’s performance amidst heightened market dynamics.
Disclaimer: This article is meant purely for informational purposes and should not be considered financial advice. Investors are advised to conduct thorough research and analysis before making any investment decisions regarding Dollar General or any other stocks mentioned herein.