Goldman Sachs downgrade DG to "neutral" from "buy"
Discount retail chain Dollar General Corp (NYSE:DG) was downgraded to "neutral" from "buy" at Goldman Sachs. Although the brokerage raised its price target by one dollar to $116, it cited valuation concerns following DG's recent rebound on the charts. At last glance, DG was down 0.5% at $114.35 premarket.
Dollar General stock enjoyed a post-earnings pop of nearly 16% on June 3, after the company hiked its annual forecast and suggested minimal impact from Chinese tariffs. The shares have consolidated between $110 and $115 since. Year-to-date, the equity is up 51.6%.
There remains plenty of room for more downgrades, with 12 of the 29 in coverage sporting a "buy" or "strong buy." The 12-month consensus price target is in line with current levels.
The options pits are leaving room for an unwinding of optimism as well. This is per the stock's 10-day call/put volume ratio of 3.42 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that ranks higher than 91% of readings from the past year.