1248 Management LLC has entered the retail investment space by acquiring a new position in Dollar General Corporation (NYSE: DG) during the second quarter of 2023. According to their latest 13F filing with the Securities and Exchange Commission (SEC), the firm purchased 6,744 shares valued at approximately $771,000.
Other significant investors have also adjusted their holdings in Dollar General. Blue Trust Inc. increased its stake by 5.8%, now owning 2,005 shares valued at $229,000 following the acquisition of an additional 110 shares. Similarly, Stablepoint Partners LLC raised its position by 0.6%, totaling 17,474 shares worth $1.999 million. Tectonic Advisors LLC and Ancora Advisors LLC also expanded their stakes, with Tectonic adding 113 shares and Ancora increasing its holdings by 122 shares.
Analyst Ratings and Stock Performance
Equity research analysts have reacted positively to Dollar General’s market position. Gordon Haskett upgraded the stock from an “accumulate” to a “buy” rating. Furthermore, Jefferies Financial Group raised its target price from $130.00 to $142.00, while Guggenheim increased its target from $125.00 to $140.00. The consensus target price for Dollar General now stands at $127.60, with an average rating of “Hold,” according to MarketBeat.com.
On the trading front, Dollar General shares opened at $132.97 on the last reported Friday. The company has a market capitalization of $29.27 billion and a price-to-earnings (PE) ratio of 22.97. Over the past year, the stock has fluctuated between a low of $66.43 and a high of $135.08.
Financial Results and Future Guidance
Dollar General recently announced its earnings for the quarter, reporting earnings per share (EPS) of $1.28, surpassing analyst expectations of $0.95 by $0.33. The company’s revenue reached $10.65 billion, slightly above estimates of $10.60 billion and reflecting a 4.6% increase compared to the same quarter last year. The firm has set its full-year 2025 guidance at 6.300-6.500 EPS, with analysts predicting an EPS of $5.75 for the current year.
In addition to its financial performance, Dollar General announced a quarterly dividend of $0.59 per share, to be paid on January 20, 2024, to stockholders of record as of January 6, 2024. This represents an annualized dividend of $2.36 and a yield of 1.8%.
Despite the encouraging investment and analyst ratings, insider transactions have shown a different trend. Recently, Carman R. Wenkoff, Executive Vice President, sold 19,166 shares for a total of approximately $2.53 million, reducing his ownership by 30.74%. Another executive, Tracey N. Herrmann, sold 12,583 shares valued at approximately $1.57 million, lowering her ownership by 28.91%.
With institutional investors and hedge funds owning approximately 91.77% of Dollar General shares, the company’s strategic positioning and investor interest remain strong. As the retail sector adapts to changing market conditions, the actions of significant stakeholders will continue to shape the future of Dollar General.
