Convergence Investment Partners LLC Invests $1.42 Million in Dillard’s, Inc. $DDS

Convergence Investment Partners LLC acquired a new position in shares of Dillard’s, Inc. (NYSE:DDS) in the fourth quarter, HoldingsChannel.com reports. The institutional investor acquired 2,347 shares of the company’s stock, valued at approximately $1,423,000.

A number of other hedge funds have also modified their holdings of the business. Wakefield Asset Management LLLP purchased a new position in shares of Dillard’s during the 4th quarter worth approximately $1,344,000. Northwestern Mutual Wealth Management Co. increased its stake in shares of Dillard’s by 28,394.2% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 226,529 shares of the company’s stock worth $137,354,000 after purchasing an additional 225,734 shares in the last quarter. Versor Investments LP increased its stake in shares of Dillard’s by 16.8% during the 4th quarter. Versor Investments LP now owns 701 shares of the company’s stock worth $425,000 after purchasing an additional 101 shares in the last quarter. Swiss Life Asset Management Ltd purchased a new position in shares of Dillard’s during the 4th quarter worth approximately $249,000. Finally, Denali Advisors LLC increased its stake in shares of Dillard’s by 80.3% during the 4th quarter. Denali Advisors LLC now owns 1,116 shares of the company’s stock worth $677,000 after purchasing an additional 497 shares in the last quarter. 67.15% of the stock is owned by hedge funds and other institutional investors.

Key Dillard’s News

Here are the key news stories impacting Dillard’s this week:

• Positive Sentiment: Q1 earnings came in well above estimates at $16.04 per share versus about $10 expected, while revenue also topped forecasts, signaling better-than-anticipated profitability and demand. Dillard’s, Inc. Reports First Quarter Results
• Positive Sentiment: Comparable-store sales rose 3% and total retail sales increased 3%, showing improving traffic and stronger merchandise demand across all major categories. Dillard’s Q1 Earnings & Sales Beat Estimates, Retail Sales Up 3%
• Positive Sentiment: Gross margin improved to 45.8% and net income jumped to $250.6 million, helped by a favorable litigation settlement and better operating leverage. Dillard’s Shares Rise After Earnings Beat Fueled by Litigation Settlement (DDS)
• Neutral Sentiment: Management opened a new store in Ohio and raised inventory slightly, but also noted higher operating expenses, which could temper margin gains if costs stay elevated. Dillard’s, Inc. Reports First Quarter Results
• Negative Sentiment: Some analysts remain cautious, arguing the strength may be temporary because results were aided by one-time litigation gains and may not fully reflect underlying retail demand. Dillard’s: Strength Is Temporary

Analysts Set New Price Targets

DDS has been the subject of a number of recent research reports. Zacks Research cut shares of Dillard’s from a “strong-buy” rating to a “hold” rating in a research note on Monday, February 23rd. Wall Street Zen cut shares of Dillard’s from a “buy” rating to a “hold” rating in a research note on Saturday, March 28th. JPMorgan Chase & Co. dropped their price objective on shares of Dillard’s from $524.00 to $449.00 and set an “underweight” rating for the company in a research note on Wednesday, February 25th. UBS Group raised their price objective on shares of Dillard’s from $460.00 to $465.00 and gave the stock a “sell” rating in a research note on Wednesday, May 6th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Dillard’s in a research report on Wednesday, January 21st. Three equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Reduce” and an average price target of $521.33.

Dillard’s Stock Up 1.1%

Shares of NYSE DDS opened at $540.51 on Friday. Dillard’s, Inc. has a 1 year low of $386.85 and a 1 year high of $741.97. The firm’s 50 day moving average price is $580.45 and its 200 day moving average price is $619.96. The firm has a market cap of $8.44 billion, a P/E ratio of 12.85 and a beta of 1.17. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.31 and a current ratio of 2.65.

Dillard’s (NYSE:DDS) last announced its earnings results on Thursday, May 14th. The company reported $16.04 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $10.13 by $5.91. Dillard’s had a net margin of 10.09% and a return on equity of 31.89%. The firm had revenue of $1.59 billion for the quarter, compared to analyst estimates of $1.55 billion. During the same quarter last year, the business earned $10.39 earnings per share. Dillard’s’s revenue was up 2.7% compared to the same quarter last year. As a group, sell-side analysts anticipate that Dillard’s, Inc. will post 32.52 earnings per share for the current year.

Dillard’s Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, May 4th. Investors of record on Tuesday, March 31st were given a dividend of $0.30 per share. The ex-dividend date was Tuesday, March 31st. This represents a $1.20 dividend on an annualized basis and a yield of 0.2%. Dillard’s’s dividend payout ratio (DPR) is 2.85%.

Dillard’s Company Profile

Dillard’s, Inc (NYSE:DDS), headquartered in Little Rock, Arkansas, is a U.S.-based department store chain founded by William T. Dillard in 1938. Over more than eight decades of operation, the company has grown from a single store in Nashville, Arkansas, to a prominent retailer with a national footprint. Dillard’s equity is publicly traded on the New York Stock Exchange under the ticker DDS.

The company operates approximately 280 departmental stores across 29 states, offering a broad assortment of merchandise that includes men’s and women’s apparel, accessories, cosmetics, footwear, and home furnishings.