Dollar General Corp. (NYSE:DG) finished Friday with an addition of $0.43 to close at $105.80, an upside of 0.41 percent. An average of 4,112,300 shares of common stock have been traded in the last five days. There was a fall of -$2.34 in the past week, and it reached a new high 7 times over the past 12 months. The last 20 days have seen an average of 5,425,380 shares traded, while the 50-day average volume stands at 3,758,662.
DG stock has decreased by -32.89% in the last month. The company shares reached their 1-month lowest point of $103.27 on 09/28/23. With the stock rallying to its 52-week high on 01/06/23, shares of the company touched a low of $103.27 and a high of $261.59 in 52 weeks. It has reached a new high 2 times so far this year and lost -57.04% or -$140.45 in price. In spite of this, the price is down -59.56% from the 52-week high.
Insider Transactions
DG stock investors should be aware that Dollar General Corp. (DG) stock had its last reported insider trading activity 116 days ago on Jun 08. In this transaction, the insider spent $4,280,887. Director, BRYANT WARREN F, disposed of 1,951 shares at a price of $243.93 on Jan 04. The insider now owns more than $475,913 worth of shares. Prior to that, EVP & Chief Information Ofc Wenkoff Carman R went on to Sale 10,000 shares at $240.49 each on Sep 30. An amount of $2,404,911 was transacted.
Valuation Metrics
Dollar General Corp. (DG) has a trailing price-to-earnings (P/E) ratio of 10.84. The stock’s beta is 0.37. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.60, the price-to-book (PB) ratio at 3.69, and the price-to-cash flow ratio at 248.27.
Financial Health
The quick ratio of Dollar General Corp. for the three months ended July 30 was 0.15, and the current ratio was 1.39, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 2.65 and a total debt to equity ratio of 2.86 for the quarter ending July 30. Its gross profit as reported stood at $11.82 billion compared to revenue of $37.84 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Dollar General Corp.’s return on assets was 7.40%.
Earnings Surprise
For the three-month period that ended July 30, Dollar General Corp. had $7.3 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $468.84 million in the quarter, while revenues of $514.38 million were shrunk -44.62%. The analyst consensus anticipated Dollar General Corp.’s latest quarter earnings to come in at $2.46 per share, but it turned out to be $2.13, a -13.40% surprise. For the quarter, EBITDA amounted to $900.69 million. Shareholders own equity worth $219.48 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Dollar General Corp. (DG) price momentum. RSI 9-day as of the close on 29 September was 18.85%, suggesting the stock is oversold, with historical volatility in this time frame at 29.50%.
As of today, DG’s price is $105.83 -2.16% or -$2.34 from its 5-day moving average. DG is currently trading -23.61% lower than its 20-day SMA and -51.91% lower than its 100-day SMA. However, the stock’s current price level is -37.32% below the SMA50 and -56.78% below the SMA200.
The stochastic %K and %D were 7.40% and 4.95%, respectively, and the average true range (ATR) was 3.64. With the 14-day stochastic at 10.63% and the average true range at 3.93, the RSI (14) stands at 19.12%. The stock has reached -3.48 on the 9-day MACD Oscillator while the 14-day reading was at -6.89.
Analyst Ratings
HSBC Securities launched coverage on Dollar General Corp. (NYSE: DG) in its analyst report released on September 22, 2023. The firm assigned the stock a Reduce rating. The consensus rating for Dollar General Corp. (DG) among analysts is Hold. According to current brokerage recommendations, 2 brokerage firms advise that investors sell DG, while 17 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 3 analysts, while 7 others rate it as a “buy”.
What is DG’s price target for the next 12 months?
Analysts predict a range of price targets between $102.00 and $210.00, with a median target of $143.80. Taking a look at these predictions, the average price target given by analysts for Dollar General Corp. (DG) stock is $146.82.
