Dollar General Corp. (DG) Shares Down Despite Recent Market Volatility

The stock price of Dollar General Corp. (NYSE: DG) has plunged by -1.56 when compared to previous closing price of 157.35, but the company has seen a 2.73% gain in its stock price over the last five trading sessions. The Motley Fool reported 2024-03-26 that Sales have been languishing. Dollar General’s margin has contracted.

Is It Worth Investing in Dollar General Corp. (NYSE: DG) Right Now?

Dollar General Corp. (NYSE: DG) has a price-to-earnings ratio that is above its average at 20.51x. The stock has a 36-month beta value of 0.41. Opinions on the stock are mixed, with 8 analysts rating it as a “buy,” 6 as “overweight,” 14 as “hold,” and 0 as “sell.”

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The public float for DG is 218.91M, and at present, short sellers hold a 2.88% of that float. On April 03, 2024, the average trading volume of DG was 2.41M shares.

DG’s Market Performance

DG stock saw an increase of 2.73% in the past week, with a monthly gain of 3.77% and a quarterly increase of 13.93%. The volatility ratio for the week is 2.09%, and the volatility levels for the last 30 days are 2.81% for Dollar General Corp. (DG). The simple moving average for the last 20 days is 0.05% for DG stock, with a simple moving average of 11.16% for the last 200 days.

Analysts’ Opinion of DG

Many brokerage firms have already submitted their reports for DG stocks, with Telsey Advisory Group repeating the rating for DG by listing it as a “Outperform.” The predicted price for DG in the upcoming period, according to Telsey Advisory Group is $170 based on the research report published on March 15, 2024 of the current year 2024.

JP Morgan, on the other hand, stated in their research note that they expect to see DG reach a price target of $158, previously predicting the price at $120. The rating they have provided for DG stocks is “Neutral” according to the report published on March 12th, 2024.

Telsey Advisory Group gave a rating of “Market Perform” to DG, setting the target price at $155 in the report published on March 11th of the current year.

DG Trading at 7.53% from the 50-Day Moving Average

After a stumble in the market that brought DG to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -30.54% of loss for the given period.

Volatility was left at 2.81%, however, over the last 30 days, the volatility rate increased by 2.09%, as shares surge +4.35% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +17.15% upper at present.

During the last 5 trading sessions, DG rose by +2.73%, which changed the moving average for the period of 200-days by -4.46% in comparison to the 20-day moving average, which settled at $155.13. In addition, Dollar General Corp. saw 13.93% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at DG starting from BRYANT WARREN F, who purchase 850 shares at the price of $130.18 back on Dec 15 ’23. After this action, BRYANT WARREN F now owns 425 shares of Dollar General Corp., valued at $110,653 using the latest closing price.

Wenkoff Carman R, the EVP & Chief Information Ofc of Dollar General Corp., purchase 2,000 shares at $106.25 during a trade that took place back on Sep 29 ’23, which means that Wenkoff Carman R is holding 30,966 shares at $212,500 based on the most recent closing price.

Stock Fundamentals for DG

Current profitability levels for the company are sitting at:

  • 0.06 for the present operating margin
  • 0.3 for the gross margin

The net margin for Dollar General Corp. stands at 0.04. The total capital return value is set at 0.09. Equity return is now at value 27.03, with 5.06 for asset returns.

Based on Dollar General Corp. (DG), the company’s capital structure generated 0.55 points at debt to capital in total, while cash flow to debt ratio is standing at 0.29. The debt to equity ratio resting at 1.24. The interest coverage ratio of the stock is 7.49.

Currently, EBITDA for the company is 3.3 billion with net debt to EBITDA at 5.33. When we switch over and look at the enterprise to sales, we see a ratio of 1.33. The receivables turnover for the company is 344.65for trailing twelve months and the total asset turnover is 1.15. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.19.

Conclusion

To sum up, Dollar General Corp. (DG) has seen a better performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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