Dollar General Co. (NYSE: DG) has garnered significant attention from investors due to its highly positive consensus recommendation of “Moderate Buy” from nineteen analysts covering the stock. This announcement was highlighted in a report by Bloomberg, which detailed the opinions and ratings provided by industry experts and the average 12-month price target set by brokers based on Dollar General’s growth and progress over time.
Out of the nineteen analysts providing coverage, five equities research authorities have recommended holding the stock, seven have assigned a buy recommendation, and two have issued a strong buy recommendation for Dollar General Co. This clear consensus demonstrates that investors are closely monitoring Dollar General’s initiatives and their impact on shareholder performance.
The average twelve-month price target among brokers stands at $248.82. This figure represents the estimated fair value of the stock, derived through extensive analysis of various market benchmarks such as P/E ratios, earnings reports, financial statements, growth potential, competition intensity, and market volatility.
Investors have also taken notice of Dollar General’s recent announcement regarding its quarterly dividend. Shareholders recorded on April 11th received a dividend payout of $0.59 per share on April 25th, reflecting a year-on-year increase from $0.55. This change has led to Dollar General’s dividend payout ratio (DPR) reaching 22.10%, indicating that the company returns more than one-fifth of its net income to shareholders annually through dividends.
Furthermore, large investors are growing interested in acquiring ownership stakes in the company. Price T Rowe Associates Inc.’s MD division increased its stake by 1.4% during Q4-2022, worth over $13 billion. State Street Corp also raised its stake by 0.5%. Morgan Stanley grew its position by almost forty per cent during Q4-2022, now valued at $4.7 billion. Geode Capital Management LLC boosted its share by 1.2% in Q4-2022, reaching a value of over $4.2 billion. Additionally, Alliancebernstein L.P. increased its investment by 124.5% in the last quarter.
Dollar General Co.’s institutional investors and hedge funds have also garnered attention, owning more than 90% of the company’s stock. It indicates that Dollar General presents an attractive investment opportunity for large investors seeking safe and reliable investments with significant potential for returns.
In conclusion, recent reports suggest a positive outlook for Dollar General Co. as both shareholders and investors benefit from the highly favourable rating experts provide regarding the future performance of DG stock prices. It presents excellent opportunities for potential investors interested in long-term growth or a source of passive income through Dollar General’s stable dividend payout schedule, which depends on the company’s solid fundamentals rather than market volatility.
Dollar General (DG) has become a topic of interest among various financial institutions. Barclays, JPMorgan, Truist Financial, Wells Fargo & Company, and Morgan Stanley have all published research reports on DG in recent months. While some analysts have revised their target prices, others remain optimistic about the company’s prospects.
Barclays initiated coverage on DG in February 2023, assigning an “equal weight” rating with a $237.00 target price. JPMorgan Chase & Co. maintained its “focus list” rating but lowered the target price from $289.00 to $242.00 in January 2023. Truist Financial raised its price target from $211.00 to $214.00 but gave the stock a “hold” rating in March 2023.
On the other hand, Wells Fargo & Company decreased its price objective from $275.00 to $245