BofA Securities has recently raised Dollar General Corp (DG) stock to Buy rating, as announced on December 6, 2024, according to Finviz. Earlier, on December 6, 2024, Telsey Advisory Group had reiterated the stock to Market Perform, setting a price target of $88 for DG stock. Bernstein also initiated Outperform rating with a price target of $98. Additionally, Citigroup reduced Sell rating on September 27, 2024, with a target price of $73. Telsey Advisory Group analysts, in their report published on August 30, 2024, also reduced Market Perform rating and set a price target of $168 for Dollar General Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Dollar General Corp (DG) Stock Trading Recap
On Thursday, Dollar General Corp (DG) stock saw a decline, ending the day at $72.84 which represents a decrease of $-0.97 or -1.31% from the prior close of $73.81. The stock opened at $73.96 and touched a low of $72.67 during the day, reaching a high of $74.11. The volume of shares traded was 2.80 million falling short of the average volume of 3.75 million.
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DG Stock Performance and Moving Averages
In recent trading, Dollar General Corp (DG) stock price has shown some volatility, fluctuating 0.32% over the last five trades and 4.99% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -37.66%, and it has plunged by -4.52% in the previous three months. Currently, DG is trading at 1.11%, -2.08%, and -27.00% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, DG, a Consumer Defensive sector stock, is trading -56.66% below its 52-week high but remains 9.65% above its 52-week low. The Average True Range (ATR) (14 days) of 2.01 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Dollar General Corp’s Profitability and Valuation Ratios
Dollar General Corp’s profitability metrics reveal financial health. The company currently boasts an operating margin of 4.98% and a profit margin of 3.33%, with a gross margin of -37.66%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Dollar General Corp’s market capitalization stands at $16.02 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 12, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 12.36. Additionally, the Price-to-Sales Ratio is 0.4, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 2.18, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.29% of Dollar General Corp (DG)’s shares, while financial institutions hold 94.59%.
Notable insider trades include CALBERT MICHAEL M, Director at Dollar General Corp (DG), who sold 6000 shares on Dec 31 ’24, at $75.27 each, totaling $0.45 million. On Dec 13 ’24, TAYLOR EMILY C, EVP & Chief Merchandising Ofc, sold 4740 shares for $77.44 each, amounting to $0.37 million. Additionally, on Dec 10 ’24, REARDON KATHLEEN A sold 3583 shares at $82.68 each, generating $0.30 million.
