1. Dollar General Corporation (NYSE:DG)
1623 Capital’s Stake Value: $12,624,000
Percentage of 1623 Capital’s 13F portfolio: 6.32%
Number of Hedge Fund Holders: 53
Dollar General Corporation (NYSE:DG) is the largest holding of Motley Fool’s 1623 Capital, with the hedge fund owning 56,702 shares of the company, worth $12.6 million, representing 6.32% of the total 13F portfolio. Dollar General Corporation (NYSE:DG) is an American discount retailer. The company declared on May 31 a $0.55 per share quarterly dividend, in line with previous. The dividend is payable on July 19, to shareholders of record on July 5.
Morgan Stanley analyst Simeon Gutman on June 16 upgraded Dollar General Corporation (NYSE:DG) to Overweight from Equal Weight, raising the price target to $250 from $225. The analyst observed that Dollar General Corporation (NYSE:DG) fits his theme of “favoring quality, defensive retailers with offensive characteristics”. He sees a favorable risk/reward skew, with 50% upside and 25% downside in his $340 bull case and $175 bear case, respectively.
According to Insider Monkey’s Q1 data, 53 hedge funds held bullish positions in Dollar General Corporation (NYSE:DG), up from 44 funds in the last quarter. William B. Gray’s Orbis Investment Management is the largest shareholder of the company, with 2.3 million shares worth $519.2 million.
Here is what LRT Capital Management has to say 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 1st, 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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