Zacks Investment Research upgraded shares of Dillard’s Inc. (NYSE:DDS) from a hold rating to a buy rating in a research note released on Thursday. They currently have $73.00 price objective on the stock.
According to Zacks, “Dillard’s constant efforts to capitalize on growth opportunities in its brick-and-mortar stores and eCommerce business place it well, as it is likely to help it retain existing customers and attract new ones. The company’s focus on increasing productivity, developing a leading omni-channel platform and enhancing its domestic operations is also expected to support future results. Moreover, the company’s strong financial status provides the flexibility to make shareholder-friendly moves and further business expansion. While the company’s earnings and sales topped estimates in the last reported quarter, Dillard’s fiscal 2016 outlook indicates significant cost pressures, which might hurt margins and bottom line. Soft economic recovery and stiff competition in the retail merchandise space may also prove to be hurdles.”
A number of other research firms have also recently weighed in on DDS. Credit Suisse Group AG raised Dillard’s from a neutral rating to an outperform rating and lifted their price objective for the company from $63.00 to $70.00 in a research report on Wednesday, September 28th. Telsey Advisory Group lifted their price objective on Dillard’s from $62.00 to $65.00 and gave the company a market perform rating in a research report on Friday, August 12th. Finally, Bank of America Corp. reaffirmed a sell rating and set a $55.00 price objective on shares of Dillard’s in a research report on Friday, August 12th. Four investment analysts have rated the stock with a sell rating, two have assigned a hold rating and two have issued a buy rating to the company’s stock. The company currently has an average rating of Hold and an average target price of $66.39.
Dillard’s (NYSE:DDS) last posted its quarterly earnings data on Thursday, August 11th. The company reported $0.35 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.31 by $0.04. Dillard’s had a return on equity of 11.74% and a net margin of 3.31%. The firm had revenue of $1.45 billion for the quarter, compared to analysts’ expectations of $1.48 billion. During the same period in the previous year, the firm earned $0.75 EPS. The business’s quarterly revenue was down 4.1% on a year-over-year basis.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 31st. Stockholders of record on Friday, September 30th will be issued a dividend of $0.07 per share. The ex-dividend date of this dividend is Wednesday, September 28th. This represents a $0.28 annualized dividend and a dividend yield of 0.42%. Dillard’s’s dividend payout ratio (DPR) is 4.65%.
Several hedge funds have recently modified their holdings of the company. Acrospire Investment Management LLC boosted its stake in shares of Dillard’s by 120.0% in the second quarter. Acrospire Investment Management LLC now owns 2,200 shares of the company’s stock valued at $133,000 after buying an additional 1,200 shares during the period. Kernodle & Katon Asset Management Group LLC boosted its stake in shares of Dillard’s by 1,669.3% in the second quarter. Kernodle & Katon Asset Management Group LLC now owns 2,477 shares of the company’s stock valued at $150,000 after buying an additional 2,337 shares during the period. Pacer Advisors Inc. purchased a new stake in shares of Dillard’s during the second quarter valued at about $159,000. Mutual of America Capital Management LLC boosted its stake in shares of Dillard’s by 24.4% in the second quarter. Mutual of America Capital Management LLC now owns 3,140 shares of the company’s stock valued at $190,000 after buying an additional 615 shares during the period. Finally, Teacher Retirement System of Texas boosted its stake in shares of Dillard’s by 13.6% in the second quarter. Teacher Retirement System of Texas now owns 3,197 shares of the company’s stock valued at $194,000 after buying an additional 383 shares during the period. 78.96% of the stock is currently owned by institutional investors and hedge funds.
Dillard’s Company Profile
Dillard’s, Inc is a retailer of fashion apparel, cosmetics and home furnishing. The Company operates approximately 300 Dillard’s stores, including over 20 clearance centers, and an Internet store offering a range of merchandise, including fashion apparel for women, men and children, accessories, cosmetics, home furnishings and other consumer goods.
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