SteelPeak Wealth LLC significantly reduced its stake in Dollar General Corporation (NYSE: DG) by 90.2% during the third quarter of 2023. According to the firm’s latest Form 13F filing with the Securities and Exchange Commission, SteelPeak now holds 2,340 shares of Dollar General after offloading 21,647 shares in the quarter. The value of SteelPeak’s holdings in Dollar General stands at approximately $242,000.
This decision by SteelPeak has occurred alongside changes in positions by several other institutional investors. Vanguard Group Inc. increased its holdings in Dollar General by 1.5% during the second quarter, now owning 26,817,649 shares valued at around $3.07 billion. Similarly, Arrowstreet Capital Limited Partnership raised its position by an impressive 116.0%, bringing its total to 2,714,972 shares valued at approximately $310.5 million.
Baupost Group LLC also expanded its stake by 26.7%, owning 2,666,876 shares worth $305 million. In addition, Charles Schwab Investment Management Inc. and Russell Investments Group Ltd. increased their holdings by 4.1% and 3.0%, respectively, highlighting a diverse range of investment strategies among institutional investors in the company.
Dollar General Stock Performance
On Monday, Dollar General shares opened at $136.55. The company exhibits a debt-to-equity ratio of 0.63, a quick ratio of 0.24, and a current ratio of 1.17. Recent trading shows a fifty-day simple moving average of $116.37 and a two-hundred-day average of $111.25. With a market capitalization of $30.06 billion, the company holds a price-to-earnings (P/E) ratio of 23.58 and a beta of 0.26.
Over the past year, Dollar General’s stock has fluctuated between a low of $66.43 and a high of $139.83. The company recently announced its quarterly earnings on December 4, 2023, reporting earnings per share (EPS) of $1.28, surpassing analysts’ expectations of $0.95 by $0.33. Revenue for the quarter reached $10.65 billion, slightly above forecasts of $10.60 billion. Dollar General’s return on equity stands at 18.59%, with a net margin of 3.03%, reflecting a 4.6% increase in quarterly revenue compared to the previous year.
The company has also provided guidance for fiscal year 2025, projecting an EPS range of $6.30 to $6.50. Analysts forecast an average EPS of $5.75 for the current fiscal year.
Dividend Announcement and Insider Activity
In related news, Dollar General has declared a quarterly dividend of $0.59 per share, scheduled for payment on January 20, 2024. Shareholders on record as of January 6, 2024, will be eligible for this dividend, which represents an annualized dividend of $2.36 and a dividend yield of 1.7%. The company’s dividend payout ratio currently stands at 40.76%.
Recent insider transactions have also garnered attention. Carman R. Wenkoff, Executive Vice President, sold 19,166 shares on December 11, 2023, for an approximate total of $2.53 million. Following this transaction, Wenkoff’s ownership decreased by 30.74% to 43,179 shares. Another executive, Bryan D. Wheeler, sold 9,776 shares on December 19, 2023, valued at around $1.32 million, which resulted in a 30.48% decrease in his holdings.
In total, insiders have sold 58,673 shares worth approximately $7.71 million over the last three months, with corporate insiders holding only 0.56% of the company stock.
Analyst Ratings and Future Outlook
Market analysts have weighed in on Dollar General’s stock performance. Wall Street Zen recently upgraded the stock from a “hold” to a “buy” rating, while Weiss Ratings maintained a “hold (C-)” rating. Raymond James Financial reiterated an “outperform” rating with a price target of $135.00. Daiwa Capital Markets raised its target price from $113.00 to $130.00, assigning a “neutral” rating. Meanwhile, BNP Paribas Exane increased its price target from $118.00 to $127.00.
Overall, analysts have rated Dollar General with a consensus of “Moderate Buy” and an average target price of $132.62. The stock rating includes one analyst recommending a Strong Buy, thirteen advocating for Buy, and sixteen advising Hold.
Dollar General Corporation, headquartered in Nashville, Tennessee, has established itself as a leading variety and discount retailer since its founding in 1939. The company operates a vast network of small-format stores primarily serving rural and suburban communities, offering a wide range of everyday consumables and household goods.
