Dollar General Corp (DG US, -1, 06-Jan-25)
We downgraded this stock on September 20th, ranking the stock -N based primarily on a sale from Steven Deckard (EVP of Store Operations, joined 2006) at $87, which reduced his holdings by -41% to just 2,887 shares. That sale was concerning as it followed a sharp decline in the stock price after reporting Q2 earnings.
The stock has moved lower since that downgrade, and we have not seen any insider buying surface. Instead, on December 31st, Michael Calbert (Chair, joined in 2007) made his first sale, selling 6,000 shares at $75. Just six months ago he was a buyer at $155.
On December 13th, Emily Taylor (Chief Merchandising Officer since 2020) sold shares at $77, reducing her holdings by -23%. Taylor and Calbert’s sales don’t appear that unusual and could be compensation-related. However, these additional sales at a lower price point and a lack of insider buying are concerning.
We are downgrading the signal further from -N to -1 (strongly negative).
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