Family Dollar Stores (NYSE:FDO) was downgraded by analysts at Sterne Agee from a “neutral” rating to an “underperform” rating in a research report issued to clients and investors on Friday, TheFlyOnTheWall.com reports. They currently have a $56.00 price target on the stock, down from their previous price target of $62.00. Sterne Agee’s price objective indicates a potential downside of 17.16% from the company’s current price.
The analysts wrote, “We are downgrading shares of FDO to Underperform with a new $56 PT. With a DG-led takeout unlikely near-term, we think fundamentals will return into focus, which given today’s ultra-competitive retail backdrop could expose both 1) EPS to the downside (both SSS and GPM) and 2) the company’s structural issues. As a result, at $68 and ~17x, both the ‘P’ and the ‘E’ look extended, particularly relative to Buy-Rated DG (15x, EPS intact).”
A number of other analysts have also recently weighed in on FDO. Analysts at Guggenheim raised their price target on shares of Family Dollar Stores from $70.00 to $77.00 in a research note to investors on Monday, October 28th. They now have a “buy” rating on the stock. Separately, analysts at Thomson Reuters/Verus downgraded shares of Family Dollar Stores from a “buy” rating to a “hold” rating in a research note to investors on Monday, October 21st. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Family Dollar Stores in a research note to investors on Thursday, October 17th. They now have a $73.00 price target on the stock. Two equities research analysts have rated the stock with a sell rating, twenty-one have assigned a hold rating and four have given a buy rating to the company. The stock has an average rating of “Hold” and a consensus target price of $66.28.
Family Dollar Stores (NYSE:FDO) opened at 67.60 on Friday. Family Dollar Stores has a 52 week low of $54.06 and a 52 week high of $75.29. The stock’s 50-day moving average is $69.49 and its 200-day moving average is $68.4. The company has a market cap of $7.781 billion and a P/E ratio of 17.65.
Family Dollar Stores (NYSE:FDO) last released its earnings data on Wednesday, October 9th. The company reported $0.86 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.84 by $0.02. The company had revenue of $2.50 billion for the quarter, compared to the consensus estimate of $2.56 billion. During the same quarter in the prior year, the company posted $0.75 earnings per share. Analysts expect that Family Dollar Stores will post $3.99 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Wednesday, January 15th. Investors of record on Friday, December 13th will be paid a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a dividend yield of 1.54%. The ex-dividend date is Wednesday, December 11th.
Family Dollar Stores, Inc operates a chain of more than 7,400 general merchandise retail discount stores in 45 states, providing consumers with a selection of merchandise in neighborhood stores.
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