Dollar General Corporation (NYSE:DG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.

According to Zacks, “Dollar General remains committed toward better price management, merchandise initiatives and cost containment.  The company’s recent deal to acquire 322 stores from a small multi-price point retailer is also encouraging. We believe that the company’s strategic endeavors have helped it to deliver better-than-expected results for the second straight quarter, as it posted first-quarter fiscal 2017 financial numbers. Upbeat performance and the news of recent store buyout deal, prompted management to raise its sales outlook. As a result the stock has outperformed the industry in the past three months. Meanwhile, Trump’s suggestion of reducing food stamps program by $193 billion, which is nearly 25% of the budget for the program, will have a detrimental effect. Cut in SNAP benefit will hamper the company’s performance as people with low income will have less money to spend and could restrict their spending to low margin products.”

A number of other equities analysts also recently commented on the stock. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $88.00 price objective on shares of Dollar General Corporation in a report on Wednesday, May 17th. BidaskClub raised shares of Dollar General Corporation from a “strong sell” rating to a “sell” rating in a report on Monday, July 24th. Deutsche Bank AG reaffirmed a “hold” rating and issued a $79.00 price objective (up previously from $78.00) on shares of Dollar General Corporation in a report on Saturday, June 3rd. Gordon Haskett initiated coverage on shares of Dollar General Corporation in a report on Tuesday, May 9th. They issued a “reduce” rating and a $67.00 price objective for the company. Finally, BMO Capital Markets reaffirmed a “neutral” rating and issued a $85.00 price objective (up previously from $76.00) on shares of Dollar General Corporation in a report on Friday, June 2nd. Two analysts have rated the stock with a sell rating, sixteen have issued a hold rating and ten have assigned a buy rating to the company. Dollar General Corporation has an average rating of “Hold” and a consensus target price of $80.89.

Dollar General Corporation (NYSE DG) opened at 75.69 on Wednesday. Dollar General Corporation has a 12-month low of $65.97 and a 12-month high of $80.67. The firm has a 50 day moving average of $73.61 and a 200-day moving average of $72.82. The stock has a market cap of $20.76 billion, a PE ratio of 17.11 and a beta of 0.93. Dollar General Corporation also was the recipient of unusually large options trading activity on Wednesday. Stock traders bought 10,679 call options on the company. This is an increase of approximately 692% compared to the typical volume of 1,348 call options.

Dollar General Corporation (NYSE:DG) last released its quarterly earnings data on Thursday, June 1st. The company reported $1.03 EPS for the quarter, topping analysts’ consensus estimates of $1.00 by $0.03. The firm had revenue of $5.61 billion during the quarter, compared to the consensus estimate of $5.59 billion. Dollar General Corporation had a net margin of 5.53% and a return on equity of 23.07%. The firm’s revenue was up 6.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.03 earnings per share. On average, analysts expect that Dollar General Corporation will post $4.50 earnings per share for the current year.

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Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vigilant Capital Management LLC raised its position in Dollar General Corporation by 2.5% in the first quarter. Vigilant Capital Management LLC now owns 99,750 shares of the company’s stock worth $6,956,000 after buying an additional 2,400 shares during the last quarter. Parsec Financial Management Inc. raised its position in Dollar General Corporation by 6.7% in the first quarter. Parsec Financial Management Inc. now owns 35,302 shares of the company’s stock worth $2,462,000 after buying an additional 2,216 shares during the last quarter. Shell Asset Management Co. raised its position in Dollar General Corporation by 7.1% in the first quarter. Shell Asset Management Co. now owns 37,895 shares of the company’s stock worth $2,642,000 after buying an additional 2,527 shares during the last quarter. First Mercantile Trust Co. raised its position in Dollar General Corporation by 4.6% in the first quarter. First Mercantile Trust Co. now owns 20,620 shares of the company’s stock worth $1,438,000 after buying an additional 903 shares during the last quarter. Finally, Korea Investment CORP raised its position in Dollar General Corporation by 33.7% in the first quarter. Korea Investment CORP now owns 127,581 shares of the company’s stock worth $8,896,000 after buying an additional 32,148 shares during the last quarter. 88.99% of the stock is currently owned by hedge funds and other institutional investors.

Dollar General Corporation Company Profile

Dollar General Corporation is a discount retailer. The Company offers a selection of merchandise, including consumables, seasonal, home products and apparel. The Company’s consumables category includes paper and cleaning products (such as paper towels, bath tissue, and other home cleaning supplies); packaged food (such as cereals, spices, sugar and flour); perishables (such as milk, beer and wine); snacks (such as candy, cookies, and carbonated beverages); health and beauty (such as over-the-counter medicines and personal care products); pet (pet supplies and pet food), and tobacco products.

Analyst Recommendations for Dollar General Corporation (NYSE:DG)

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