Dollar General Corporation (NYSE:DG) experienced a notable increase in its stock price on Friday, rising by 6.5% following the announcement of its quarterly earnings that surpassed analyst expectations. The stock reached a peak of $133.75 before settling at $133.38 during mid-day trading. Approximately 6,387,615 shares changed hands, which represents a significant 77% increase from the average daily volume of 3,600,476 shares. This growth follows a previous closing price of $125.29.
In its latest earnings report, Dollar General disclosed earnings per share (EPS) of $1.28 for the quarter, exceeding the consensus estimate of $0.95 by $0.33. The company also reported revenue of $10.65 billion, surpassing analyst projections of $10.60 billion. This reflects a 4.6% increase in revenue compared to the same quarter last year, during which the company had an EPS of $0.89.
Dividend Announcement and Financial Health
Additionally, Dollar General announced a quarterly dividend of $0.59 per share, set to be paid on January 20, 2025. Shareholders on record as of January 6, 2025 will receive this dividend, which translates to an annualized dividend of $2.36 and a yield of 1.8%. The company’s dividend payout ratio stands at 43.70%, indicating a balanced approach to rewarding shareholders while maintaining financial health.
Dollar General boasts a market capitalization of $29.57 billion and has a price-to-earnings ratio of 24.79. The firm also has a beta of 0.27, indicating lower volatility compared to the broader market. Its debt-to-equity ratio is 0.71, while the quick ratio is 0.27 and the current ratio is 1.25. The stock’s fifty-day moving average is $103.07, with a two-hundred-day moving average of $107.20.
Investor Activity and Market Position
Investor interest in Dollar General has been robust, with several large investors recently acquiring shares. Caldwell Trust Co and Elevation Point Wealth Partners LLC each purchased new stakes valued at approximately $25,000 in the second quarter. Atlantic Union Bankshares Corp and Root Financial Partners LLC also entered new positions, each worth approximately $26,000. In the third quarter, Peoples Financial Services Corp acquired a stake valued at $35,000. Currently, institutional investors hold 91.77% of Dollar General’s stock, reflecting strong confidence in the company.
This recent surge in stock price and positive earnings report highlight Dollar General’s resilience as a discount retailer, providing essential merchandise across the southern, southwestern, midwestern, and eastern United States. The company specializes in consumable products, including paper and cleaning items, packaged food, and perishables, catering to a wide customer base.
As Dollar General continues to navigate the retail landscape, its strong financial performance and strategic dividend policy position it favorably for future growth and shareholder value enhancement.
