Dillard's director Connor buys $34,682 in company stock

In a recent transaction, Robert C. Connor, a director at Dillard's, Inc. (NYSE:DDS), purchased shares of the company's stock, signaling a vote of confidence in the department store chain. On August 19, 2024, Connor acquired 100 shares of Dillard's stock at a price of $346.82 each, amounting to a total investment of $34,682.

This purchase by Connor comes at a time when insider transactions are closely watched by investors for insights into the company's performance and potential. The transaction was made public through a filing with the Securities and Exchange Commission. Following the acquisition, Connor's stake in Dillard's, Inc. increased to a total of 78,000 shares owned directly.

Dillard's, headquartered in Little Rock, Arkansas, operates a chain of department stores across the United States. The company has been a mainstay in the retail sector and is known for its wide range of apparel, cosmetics, and home furnishings.

Investors often consider such insider purchases as a sign that the company's leadership has a positive outlook on the future of the business. While this transaction alone may not be indicative of the company's overall financial health, it does provide a glimpse into the confidence levels of Dillard's executives and board members.

The stock purchase by Connor adds to the narrative of the company's internal stakeholders being invested in the success of Dillard's, which may be of interest to current and potential shareholders. As the retail industry continues to evolve, Dillard's remains a watched entity in the market, and insider trading activity such as this is a piece of the larger puzzle that investors may consider when making decisions about their portfolios.

In other recent news, Dillard's Inc. has been a subject of focus following a downward adjustment in its second-quarter earnings and revenue. The company reported earnings per share (EPS) of $4.59, a decrease from $7.98 in the same period last year. Revenue also fell short of expectations, with reported figures of $1.51 billion against the anticipated $1.60 billion.

Analysts from CFRA and JPMorgan have responded to these developments by downgrading Dillard's stock and cutting its price target. CFRA moved Dillard's from a Buy to a Hold position, while JPMorgan retained an Underweight rating but reduced the stock price target. Both firms cited the company's decreased gross margin and increased operating expenses as key factors in these decisions.

Dillard's also reported a year-over-year decline in total retail and comparable store sales by 3%. Despite these challenges, the company remains financially robust, ending the quarter with over $1 billion in cash and short-term investments. These are among the recent developments impacting the company's performance.

InvestingPro Insights

Amidst the recent insider purchase by Robert C. Connor, Dillard's Inc. (NYSE:DDS) presents a mixed financial landscape according to the latest data from InvestingPro. The company's market capitalization stands at a robust $5.63 billion, which is reflective of its standing in the retail sector. Moreover, Dillard's exhibits a price-to-earnings (P/E) ratio of 8.49, suggesting that the stock may be undervalued compared to earnings, a potential signal for value investors. Additionally, the company boasts a strong dividend yield of 5.94%, underscoring its commitment to returning value to shareholders, as also evidenced by the fact that it has raised its dividend for 10 consecutive years.

While the company's revenue has seen a slight decline of 2.83% over the last twelve months as of Q2 2025, it maintains a healthy gross profit margin of 41.2%, indicating that it is still generating significant profit from its sales. This financial resilience is further supported by the company's ability to cover its interest payments with its cash flows, a testament to its operational efficiency.

Investors should note that while the stock price has experienced a downturn over the last week and the past three months, with a 1-week total return of -9.2% and a 3-month total return of -19.19%, Dillard's continues to pay a significant dividend to shareholders. This could be particularly appealing for income-focused investors. For those interested in further insights, there are an additional 13 InvestingPro Tips available on Dillard's, which can be accessed through InvestingPro's dedicated page for the company at https://www.investing.com/pro/DDS.

Overall, the insider purchase by a director of the company, coupled with the financial metrics and InvestingPro Tips, paints a picture of a company that may be facing short-term challenges but still holds long-term promise, particularly for those focused on dividend income and potential undervaluation.

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