SteelPeak Wealth LLC has significantly reduced its investment in Dollar General Corporation (NYSE: DG), selling approximately 90.2% of its shares during the third quarter of this year. According to the firm’s recent Form 13F filing with the Securities and Exchange Commission, SteelPeak now holds just 2,340 shares of Dollar General, down from 24,000 shares, which were valued at around $242,000 as of the latest filing.
This substantial divestment reflects broader trends among institutional investors. Several other hedge funds have also adjusted their positions in Dollar General recently. For instance, Vanguard Group Inc. increased its holdings by 1.5% in the second quarter, acquiring an additional 384,447 shares. Vanguard now owns 26,817,649 shares valued at approximately $3.07 billion. Similarly, Arrowstreet Capital Limited Partnership raised its stake by 116.0%, bringing its total to 2,714,972 shares worth around $310.5 million.
Market Performance and Earnings Report
Dollar General’s stock has shown resilience, recently trading up by 2.9%. On Monday, shares opened at $136.55. The company has a market capitalization of $30.06 billion, a price-to-earnings (PE) ratio of 23.58, and a beta of 0.26, indicating lower volatility compared to the market.
In its latest earnings report released on December 4, 2024, Dollar General reported earnings per share of $1.28, surpassing analysts’ expectations of $0.95 by $0.33. The company generated revenues of $10.65 billion, slightly exceeding estimates of $10.60 billion. Year-over-year, the company’s revenue increased by 4.6%, while the return on equity stood at 18.59% and the net margin at 3.03%.
Looking ahead, Dollar General has set its fiscal year 2025 guidance at earnings per share between $6.30 and $6.50. Analysts predict an average earnings per share of $5.75 for the current fiscal year.
Dividend and Insider Activity
In addition to its earnings report, Dollar General announced a quarterly dividend of $0.59 per share, scheduled for payment on January 20, 2025. Shareholders of record as of January 6 will receive this dividend, representing an annualized yield of 1.7% and a dividend payout ratio of 40.76%.
Recent insider transactions also reflect significant activity. EVP Carman R. Wenkoff sold 19,166 shares on December 11, 2024, at an average price of $132.01, totaling approximately $2.53 million. Following this sale, Wenkoff retained 43,179 shares valued at about $5.7 million. Similarly, EVP Bryan D. Wheeler sold 9,776 shares on December 19, 2024, for a total of around $1.32 million.
Collectively, insiders have sold 58,673 shares amounting to $7.71 million over the past three months, with insiders holding 0.56% of the stock.
Analyst Ratings and Future Outlook
Wall Street analysts have varied opinions on Dollar General’s stock. Recently, Wall Street Zen upgraded the stock from “hold” to “buy.” Meanwhile, Weiss Ratings maintained a “hold (c-)” rating, while Raymond James Financial reiterated an “outperform” rating with a price target of $135.00. Other firms, such as Daiwa Capital Markets and BNP Paribas Exane, have also adjusted their price targets, reflecting a cautious yet optimistic outlook.
As of now, one analyst rates the stock as a Strong Buy, thirteen as Buy, and sixteen as Hold, resulting in a consensus rating of “Moderate Buy” with an average target price of $132.62.
Dollar General Corporation, headquartered in the Nashville/Goodlettsville area of Tennessee, operates a vast network of small-format stores primarily serving rural and suburban communities. Founded in 1939, the company has established itself as a prominent low-price retailer, offering a wide range of everyday consumables and household goods.
