Zacks Investment Research Lowers Dillard’s Inc. (DDS) to Hold
Dillard’s Inc. (NYSE:DDS) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Tuesday.
According to Zacks, “Dillard’s constant efforts to capitalize on growth opportunities in its brick-and-mortar stores and eCommerce business place it well, as it is likely to help it retain existing customers and attract new ones. The company’s focus on increasing productivity, developing a leading omni-channel platform and enhancing its domestic operations is also expected to support future results. Moreover, the company’s strong financial status provides the flexibility to make shareholder-friendly moves and further business expansion. While the company’s earnings and sales topped estimates in the last reported quarter, Dillard’s fiscal 2016 outlook indicates significant cost pressures, which might hurt margins and bottom line. Soft economic recovery and stiff competition in the retail merchandise space may also prove to be hurdles. Estimates have witnessed a negative trend ahead of the third quarter results.”
A number of other equities analysts have also recently commented on the company. Bank of America Corp. reaffirmed a “sell” rating and issued a $55.00 target price on shares of Dillard’s in a report on Friday, August 12th. Credit Suisse Group AG raised Dillard’s from a “neutral” rating to an “outperform” rating and raised their price target for the company from $63.00 to $70.00 in a report on Wednesday, September 28th. Finally, Telsey Advisory Group raised their price target on Dillard’s from $62.00 to $65.00 and gave the company a “market perform” rating in a report on Friday, August 12th. Four investment analysts have rated the stock with a sell rating, three have assigned a hold rating and one has issued a buy rating to the company. Dillard’s presently has a consensus rating of “Hold” and an average target price of $66.39.
Dillard’s (NYSE:DDS) traded up 1.21% during midday trading on Tuesday, hitting $58.60. The stock had a trading volume of 259,693 shares. The stock’s 50-day moving average is $60.76 and its 200-day moving average is $63.91. Dillard’s has a 1-year low of $54.37 and a 1-year high of $94.12. The company has a market capitalization of $2.01 billion, a PE ratio of 9.68 and a beta of 1.18.
Dillard’s (NYSE:DDS) last announced its earnings results on Thursday, August 11th. The company reported $0.35 EPS for the quarter, topping the Zacks’ consensus estimate of $0.31 by $0.04. Dillard’s had a return on equity of 11.74% and a net margin of 3.31%. The company had revenue of $1.45 billion for the quarter, compared to analysts’ expectations of $1.48 billion. During the same period last year, the firm earned $0.75 EPS. Dillard’s’s revenue for the quarter was down 4.1% compared to the same quarter last year. Equities research analysts forecast that Dillard’s will post $5.88 EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 31st. Stockholders of record on Friday, September 30th will be given a dividend of $0.07 per share. The ex-dividend date of this dividend is Wednesday, September 28th. This represents a $0.28 dividend on an annualized basis and a dividend yield of 0.48%. Dillard’s’s payout ratio is 4.65%.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Public Employees Retirement System of Ohio raised its position in shares of Dillard’s by 1.1% in the second quarter. Public Employees Retirement System of Ohio now owns 4,053 shares of the company’s stock worth $246,000 after buying an additional 45 shares during the last quarter. O Shaughnessy Asset Management LLC raised its position in Dillard’s by 2.0% in the second quarter. O Shaughnessy Asset Management LLC now owns 10,080 shares of the company’s stock valued at $611,000 after buying an additional 198 shares in the last quarter. BNP Paribas Arbitrage SA raised its position in Dillard’s by 5.6% in the second quarter. BNP Paribas Arbitrage SA now owns 3,926 shares of the company’s stock valued at $238,000 after buying an additional 207 shares in the last quarter. Suntrust Banks Inc. raised its position in Dillard’s by 5.7% in the second quarter. Suntrust Banks Inc. now owns 4,079 shares of the company’s stock valued at $246,000 after buying an additional 221 shares in the last quarter. Finally, BlackRock Advisors LLC raised its position in Dillard’s by 3.2% in the second quarter. BlackRock Advisors LLC now owns 10,918 shares of the company’s stock valued at $662,000 after buying an additional 334 shares in the last quarter. Hedge funds and other institutional investors own 78.92% of the company’s stock.
Dillard’s, Inc is a retailer of fashion apparel, cosmetics and home furnishing. The Company operates approximately 300 Dillard’s stores, including over 20 clearance centers, and an Internet store offering a range of merchandise, including fashion apparel for women, men and children, accessories, cosmetics, home furnishings and other consumer goods.
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