1. Dollar General Corporation (NYSE:DG)
1623 Capital’s Stake Value: $14.13 million
Percentage of 1623 Capital’s 13F portfolio: 8.81%
Number of Hedge Fund Holders: 51
Dollar General Corporation (NYSE:DG) is an American chain of variety stores that offer a range of goods throughout the mid-western, southern, southwestern, and eastern regions of the United States. The Motley Fool’s 1623 Capital holds 57,600 shares of Dollar General Corporation (NYSE:DG) worth $14.13 million, representing 8.81% of the fund’s overall portfolio.
On September 16, JPMorgan analyst Matthew Boss raised the price target on Dollar General Corporation (NYSE:DG) to $294 from $287 and maintained an Overweight rating on the shares. The analyst established December 2023 price targets across his coverage, with Consumer and retail CEOs remaining “tempered” on second half of 2022 expectations given the broader macroeconomic environment. However, nearly every company cited signs of “improvement” in August relative to the June trough.
At the end of the second quarter of 2022, 51 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in Dollar General Corporation (NYSE:DG), compared to 53 the preceding quarter worth $2.25 billion. William B. Gray’s Orbis Investment Management is the most prominent shareholder of Dollar General Corporation (NYSE:DG) in the second quarter, with a stake consisting of 1.59 million shares valued at $390.04 million.
Here’s what LRT Capital Management said about Dollar General Corporation (NYSE: DG) in its Q3 2021 investor letter:
Executive Summary
At LRT Capital Management we are continuously searching the market for great investment opportunities. Our favorite finds are companies with moats and growth opportunities that justify a higher price than what the stock is trading for. One of our holdings (approximately 1.5% of our long exposure) is Dollar General (DG), so today, we wanted to tell you a bit about this great company.
Company Overview
Dollar General is a discount retailer with the largest brick-and-mortar presence in the United States by store count. The company’s largest concentration of stores can be found in the southern, southwestern, midwestern, and eastern parts of the United States.10 Dollar General was founded in 1939 by J.L. Turner, who originally named the company “J.L. Turner and Son, Wholesale”. As the name suggests, the company began its life as a wholesaler, but quickly turned to a retailer of general store goods. By the early 1950s, the company had annual sales of $2 million per year,12 which is the equivalent of $22.95 million in 2021 dollars when adjusted for inflation.
The first Dollar General store opened on June 1, 1955 in Springfield Kentucky. The simple concept was that no item in the store would cost more than one dollar. The company changed its name to Dollar General Corporation in 1968 when Dollar General became publicly traded. At the time of its initial public offering, the business generated more than $40 million in annual sales. The company’s common stock was publicly traded from 1968 until July 2007, when it was taken private by KKR. The company went public again in November 2009, under the ticker DG.
Today, Dollar General is an evolved, and phenomenal business with more room for growth. Annual sales reached a record $33.7 billion in fiscal year 2021 after consecutively growing the top line for many years. The company’s main products are every-day necessities and consumables purchased by lower income consumers on tight budgets…
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