First National Bank of Omaha Boosts Stake in Dollar General

First National Bank of Omaha has increased its investment in Dollar General Co. (NYSE:DG) by 23.9% during the third quarter, as indicated in a recent Form 13F submission to the Securities & Exchange Commission. After acquiring an additional 12,863 shares in the quarter, the bank now owns 66,736 shares of Dollar General, valued at approximately $5.64 million.

Many other investment firms have also adjusted their positions in Dollar General. Pzena Investment Management LLC significantly increased its stake by 453.4% during the same period, owning a total of 10,238,886 shares valued at about $865.9 million after acquiring 8,388,735 additional shares. Baupost Group LLC MA created a new stake in the company worth $194.8 million during the third quarter, while Point72 Asset Management L.P. raised its holdings by 148.6% and now holds 1,280,020 shares valued at $169.3 million.

State Street Corp also expanded its investments in Dollar General by 8.3%, bringing its total shares to 9,958,704, valued at roughly $842.2 million following a purchase of 759,869 shares. The Manufacturers Life Insurance Company grew its position by 319.6%, now owning 925,083 shares worth about $122.3 million after buying 704,639 additional shares. Overall, institutional investors own about 91.77% of Dollar General's stock.

Dollar General's Market Performance

On Friday, shares of Dollar General opened at $81.59. The company has a debt-to-equity ratio of 0.86 and a current ratio of 1.22, with a quick ratio of 0.24. The stock's 50-day moving average stands at $79.52, while its 200-day moving average is $103.60. Dollar General has a market capitalization of $17.94 billion, with a price-to-earnings ratio of 13.44 and a PEG ratio of 2.33. The shares have seen a yearly low of $72.12 and a high of $168.07.

Earnings Report Update

Dollar General recently released its quarterly earnings, showing an earnings per share (EPS) of $0.89 for the quarter, which fell short of analysts' expectations of $0.97 by $0.08. The net margin for the company was recorded at 3.57%, with a return on equity of 20.62%. Revenue for the quarter reached $10.18 billion, exceeding the consensus forecast of $10.14 billion and reflecting a 5.0% increase from the previous year. Analysts anticipate that Dollar General will report an EPS of 5.78 for the current fiscal year.

Dividend Announcement

Additionally, Dollar General has declared a quarterly dividend of $0.59, scheduled for payment on January 21st to shareholders on record as of January 7th. This amounts to an annualized dividend of $2.36, yielding a rate of 2.89% with a current dividend payout ratio of 38.88%.

Analyst Ratings and Insights

Recent evaluations of Dollar General's stock by analysts have varied. Gordon Haskett upgraded the rating from "hold" to "strong buy" on November 8th. Conversely, Barclays lowered its price target from $154.00 to $102.00 while assigning an "overweight" rating. Wells Fargo & Company revised their price target down from $90.00 to $80.00 with an "equal weight" rating. Citigroup changed its stance from "neutral" to "sell" and cut the target price from $91.00 to $73.00. Morgan Stanley downgraded their recommendation from "overweight" to "equal weight" with a price target adjustment from $170.00 to $100.00.

MarketBeat data indicates that one analyst has rated the stock as a sell, while 14 have a hold rating, 8 suggest buying, and one recommends a strong buy. Currently, the consensus rating is "Hold" with an average price target of $98.27.

Insider Trading Activity

In the realm of insider trading, Executive Vice President Steven R. Deckard sold 2,010 shares at an average price of $86.66 on September 18th, totaling $174,186.60. After this sale, he holds 2,887 shares valued at around $250,187.42, representing a reduction of 41.05% in his stake. Furthermore, Director Warren F. Bryant purchased 1,000 shares at an average of $80.83 per share, worth $80,830.00, increasing his ownership by 2.44% to a total of 42,030 shares valued at approximately $3.4 million. Insiders currently hold about 0.49% of Dollar General’s stock.

About Dollar General

Dollar General Corporation operates as a discount retailer, providing a range of merchandise primarily in the southern, southwestern, midwestern, and eastern United States. Its offerings include consumable products such as paper goods and cleaning supplies, packaged foods like cereals and canned items, and perishables including milk and bread.

FirstNationalBank, DollarGeneral, Investment