Dillard’s (DDS) Cut to “Strong Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Dillard’s (NYSE:DDS) from a hold rating to a strong sell rating in a research report released on Tuesday morning.

According to Zacks, “Dillard’s lagged the industry in the past month as earnings missed estimates and declined year over year in third-quarter fiscal 2018. This marked an earnings miss after four straight quarterly beats. Results were mainly hurt by higher markdowns, particularly in the first month, which significantly weighed on margins. Consolidated gross margin reflected greater decline than gross margin for retail operations as volume for the lower-margin CDI business improved. Meanwhile, gross margin for retail operations were hurt by increased markdowns. However, the company delivered top line beat for the sixth consecutive quarter backed by solid comps growth and strong performance across most categories. Further, the company’s efforts to capitalize on growth opportunities in physical stores and e-commerce bode well. Its focus on boosting productivity, enhancing domestic operations and developing omni-channel should strengthen customer base.”

Other equities analysts have also issued reports about the stock. ValuEngine upgraded shares of Dillard’s from a hold rating to a buy rating in a research report on Wednesday, August 8th. Telsey Advisory Group cut their price objective on shares of Dillard’s from $83.00 to $65.00 and set a market perform rating for the company in a research report on Friday, November 16th. Wedbush lowered shares of Dillard’s from an outperform rating to a neutral rating and cut their price objective for the company from $95.00 to $70.00 in a research report on Tuesday, October 30th. They noted that the move was a valuation call. Deutsche Bank cut their price objective on shares of Dillard’s from $66.00 to $55.00 and set a sell rating for the company in a research report on Friday, November 16th. Finally, Bank of America lowered shares of Dillard’s from a buy rating to an underperform rating and set a $55.00 price objective for the company. in a research report on Thursday, November 15th. Five investment analysts have rated the stock with a sell rating and three have given a hold rating to the stock. The stock has a consensus rating of Sell and a consensus target price of $64.86.

Shares of DDS traded up $0.01 during trading hours on Tuesday, reaching $65.00. 1,184 shares of the stock traded hands, compared to its average volume of 897,296. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.49 and a quick ratio of 0.16. Dillard’s has a 52 week low of $52.20 and a 52 week high of $98.75. The firm has a market capitalization of $1.79 billion, a P/E ratio of 13.58, a PEG ratio of 1.15 and a beta of 0.87.

Dillard’s (NYSE:DDS) last released its quarterly earnings data on Thursday, November 15th. The company reported $0.16 EPS for the quarter, missing analysts’ consensus estimates of $0.56 by ($0.40). Dillard’s had a net margin of 3.70% and a return on equity of 9.88%. The firm had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter last year, the business posted $0.41 earnings per share. On average, equities research analysts expect that Dillard’s will post 5.73 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, February 4th. Stockholders of record on Monday, December 31st will be issued a $0.10 dividend. The ex-dividend date is Friday, December 28th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.62%. Dillard’s’s payout ratio is 8.33%.

Several institutional investors and hedge funds have recently made changes to their positions in the company. NumerixS Investment Technologies Inc purchased a new position in shares of Dillard’s in the second quarter worth $126,000. Tower Research Capital LLC TRC increased its stake in shares of Dillard’s by 69.0% in the second quarter. Tower Research Capital LLC TRC now owns 1,335 shares of the company’s stock worth $126,000 after buying an additional 545 shares during the period. Advisors Asset Management Inc. increased its stake in shares of Dillard’s by 172.1% in the third quarter. Advisors Asset Management Inc. now owns 1,837 shares of the company’s stock worth $140,000 after buying an additional 1,162 shares during the period. Tower Research Capital LLC TRC increased its stake in shares of Dillard’s by 88.0% in the third quarter. Tower Research Capital LLC TRC now owns 2,510 shares of the company’s stock worth $192,000 after buying an additional 1,175 shares during the period. Finally, GSA Capital Partners LLP purchased a new position in shares of Dillard’s in the third quarter worth $206,000. Hedge funds and other institutional investors own 87.03% of the company’s stock.

Dillard’s Company Profile

Dillard's, Inc operates retail department stores primarily in the Southeastern, Southwestern, and Midwestern areas of the United States. The company's stores offer a selection of merchandise, including fashion apparel for women, men, and children; accessories; cosmetics; home furnishings; and other consumer goods.

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Analyst Recommendations for Dillard`s (NYSE:DDS)

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