Dillard’s (NYSE:DDS) Downgraded by Zacks Investment Research to “Hold”

Zacks Investment Research lowered shares of Dillard’s (NYSE:DDS) from a strong-buy rating to a hold rating in a research report released on Wednesday morning, Zacks.com reports. The firm currently has $270.00 target price on the stock.

According to Zacks, “Shares of Dillard's have outpaced the industry in a year, courtesy of its robust earnings surprise trend, which continued in third-quarter fiscal 2021. Both top and bottom lines beat the Zacks Consensus Estimate and rose year over year in the fiscal third quarter. This marked the sixth straight quarter of earnings beat. Results gained from the continued momentum in consumer demand, which somewhat offset global supply-chain issues, including shipping delays and disruptions in the transportation network. Strength in children's apparel as well as men's wear and accessories bode well. Improved consumer demand and better inventory management also led to lower markdowns, which boosted gross margin. Lower payroll expenses resulted in operating expense deleverage. However, stiff competition and raw material price inflation remain concerns.”

A number of other brokerages have also weighed in on DDS. Telsey Advisory Group raised their price objective on shares of Dillard’s from $180.00 to $330.00 and gave the company a market perform rating in a report on Friday, November 12th. UBS Group initiated coverage on shares of Dillard’s in a report on Tuesday, November 30th. They issued a sell rating and a $190.00 price objective on the stock. Two equities research analysts have rated the stock with a sell rating and three have given a hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of Hold and an average price target of $183.80.

Shares of DDS stock opened at $250.28 on Wednesday. The firm’s 50 day moving average price is $283.37 and its 200-day moving average price is $228.27. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.66 and a current ratio of 1.83. Dillard’s has a one year low of $63.55 and a one year high of $416.71. The firm has a market cap of $4.86 billion, a P/E ratio of 8.65, a P/E/G ratio of 0.53 and a beta of 0.87.

Dillard’s (NYSE:DDS) last released its earnings results on Thursday, November 11th. The company reported $9.81 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $5.52 by $4.29. The company had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.27 billion. Dillard’s had a net margin of 10.22% and a return on equity of 38.84%. As a group, research analysts predict that Dillard’s will post 31.91 EPS for the current fiscal year.

The company also recently disclosed a None dividend, which was paid on Wednesday, December 15th. Stockholders of record on Monday, November 29th were issued a $15.00 dividend. The ex-dividend date was Friday, November 26th. Dillard’s’s payout ratio is 2.77%.

In other news, Director J C. Watts, Jr. sold 1,000 shares of the firm’s stock in a transaction on Friday, November 12th. The shares were sold at an average price of $320.18, for a total value of $320,180.00. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 24.10% of the stock is currently owned by company insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. First Horizon Advisors Inc. grew its position in shares of Dillard’s by 650.0% in the 3rd quarter. First Horizon Advisors Inc. now owns 90 shares of the company’s stock valued at $29,000 after buying an additional 78 shares during the last quarter. Exchange Traded Concepts LLC purchased a new position in shares of Dillard’s in the 3rd quarter valued at $27,000. C M Bidwell & Associates Ltd. purchased a new position in shares of Dillard’s in the 2nd quarter valued at $49,000. Skandinaviska Enskilda Banken AB publ purchased a new position in shares of Dillard’s in the 3rd quarter valued at $69,000. Finally, Spire Wealth Management purchased a new position in shares of Dillard’s in the 4th quarter valued at $98,000. 60.76% of the stock is currently owned by hedge funds and other institutional investors.

Dillard’s Company Profile

Dillard’s, Inc engages in the retail of fashion apparel, cosmetics, and home furnishings, and other consumer goods. It operates through the Retail Operations and Construction segments. The Retail Operations segment comprises sells cosmetics, ladies’ apparel, ladies’ accessories and lingerie, juniors’ and children’s apparel, men’s apparel and accessories, shoes, and home and furniture products.

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