Dillard’s Inc. (NYSE :DDS) Is Getting Increasingly Hard To Ignore


    Newport Trust Co. recently announced the acquisition of new stake in Dillard’s Inc. (NYSE:DDS). The institutional investor has increased its shareholding in the Consumer Cyclical company by 0.33% to 7.2 million shares with purchase of 23701.0 shares. This fresh investment now brings its stake to 37.17% valued currently at $216.05 million. In addition, The Vanguard Group, Inc. raised its holdings by 48748.0 to 0.95 million shares. And Schroder Investment Management Lt… has lifted its position by 3.76% or 15396.0 shares – to 0.42 million shares.

    With over 0.53 million Dillard’s Inc. (DDS) shares trading Monday and a closing price of $24.28 on the day, the dollar volume was approximately $12.81 million. The shares have shown a negative weekly performance of -0.90% and its price on 07/06/20 lost nearly -0.53%. Currently, there are 23.35M common shares owned by the public and among those 15.29M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 5 analysts who have offered their price forecasts for DDS have a consensus price objective of $21.40. The analysts have set the share’s price value over the next 12 months at a high of $30.00 and a low of $16.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Dillard’s Inc. stock is 3.60 for the next 12 months. The average price target is -15.62% below its last price level and a downside to the estimated low will see the stock lose -51.75% over that period. But an upside of 19.07% will see the stock hit the forecast high price target while mean target price for the stock is $19.00.

    Insiders at the company have transacted a total of 54 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 48 of these insider trades were purchases, accounting for 53,113 shares. Insider sales of the common stock occurred on 6 occasions, with total insider shares sold totaling 27,420 shares.

    The top 3 mutual fund holders in Dillard’s Inc. are Longleaf Partners Small Cap Fund, DFA US Small Cap Value Portfolio, and Government Pension Fund – Global. Longleaf Partners Small Cap Fund owns 1.89 million shares of the company’s stock, all valued at over $56.71 million. The company sold -0.13 million shares recently to bring their total holdings to about 9.76% of the shares outstanding. DFA US Small Cap Value Portfolio has total holdings of 0.44 million shares valued at over $13.25 million and representing 2.28% of the shares outstanding. Government Pension Fund – Global sold 17938.0 shares to bring its total holdings to over 0.37 million shares at a value of $11.03 million. Government Pension Fund – Global now owns shares totaling to 1.90% of the shares outstanding.

    Shares of Dillard’s Inc. (NYSE: DDS) opened at $24.99, up $0.58 from a prior closing price of $24.41. However, the script later closed the day at $24.28, down -0.53%. The company’s stock has a 5-day price change of -0.90% and 1.72% over the past three months. DDS shares are trading -66.96% year to date (YTD), with the 12-month market performance down to -62.74% lower. It has a 12-month low price of $21.50 and touched a high of $86.71 over the same period. Currently, 0.53 million shares have been traded, compared to an average intraday trading volume of 899.23K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -13.81%, -13.58%, and -53.91% respectively.

    Institutional ownership of Dillard’s Inc. (NYSE: DDS) shares is 23.35M shares outstanding. Mutual fund holders own 45.27%, while other institutional holders and individual stakeholders account for 62.14% and 38.77% respectively.

    It has a market capitalization of $574.22M and a beta (3y monthly) value of 0.92. The stock’s earnings-per-share (ttm) stands at -$5.56. The company has a Quick Ratio of 0.20 with the debt-to-equity ratio at 0.41. Price movements for the stock have been influenced by the stock’s volatility, which stands at 7.57% over the week and 8.15% over the month.

    Analysts forecast that Dillard’s Inc. (DDS) will achieve an EPS of -$4.79 for the current quarter, -$0.59 for the next quarter and -$1.38 for 2022. The lowest estimate earnings-per-share for the quarter is -$5.84 while analysts give the company a high EPS estimate of -$3.46. Comparatively, EPS for the current quarter was -$1.74 a year ago. Earnings per share for the fiscal year are expected to decrease by -28.50%, and 86.50% over the next financial year. EPS over the next five years should compared to -10.90% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 5 brokerage firm advisors rate Dillard’s Inc. (DDS) as a “Hold” at a consensus score of 3.60. Specifically, 0 Wall Street analysts polled rate the stock as a buy, while 2 of the 5 advise that investors “hold,” and 2 rated it as a “Sell.”

    Looking at the support for the DDS, a number of firms have released research notes about the stock. Telsey Advisory Group stated their Market Perform rating for the stock in a research note on May 15, 2020, with the firm’s price target at $38-$30. Telsey Advisory Group coverage for the Dillard’s Inc. (DDS) stock in a research note released on February 26, 2020 offered a Market Perform rating with a price target of $65. Odeon was of a view on January 24, 2020 that the stock is Sell, while Telsey Advisory Group gave the stock Market Perform rating on November 15, 2019, issuing a price target of $58- $80. Telsey Advisory Group on their part issued Market Perform rating on August 16, 2019.


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