Dillards Make Quick Billion-Dollar Rebound

Dillards Make Quick Billion-Dollar Rebound
(Maddalyn Davis)

That was a quick $1 billion.

Last fall, we calculated the value of the William Dillard family’s stock in the publicly traded Little Rock retail chain at $407 million. That was based on a Nov. 9 closing price of $52.01.

Last week, each share was briefly worth almost $180, so the number of shares that were worth less than a half-billion seven months ago were worth $1.4 billion.

What has driven a department store’s stock price to record heights? One factor is first-quarter earnings that far exceeded analyst expectations and higher predictions for the second quarter.

Before that, Dillard’s was a target of short-sellers — the very kind of stock that has generated interest from the kind of investors who bid up GameStop and AMC.

But analysts are not unanimous in their outlook. Dillard’s (NYSE: DDS) was Zacks Investment Research’s “Bull of the Day” on Thursday, with a “strong buy” recommendation.

GuruFocus, on the other hand, released its opinion on Wednesday with a headline that summed it up: “Dillard’s Stock Gives Every Indication Of Being Significantly Overvalued.”

The members of the Dillard family who have publicly disclosed stock holdings are William Dillard II, Alex Dillard, Mike Dillard, Drue Dillard Matheny, William “Bill” Dillard III, Deborah Dillard, Annemarie Dillard Jazic and Denise Alexandra Dillard Lucie. At the close of trading on Thursday, Dillard’s share price was down by 7%. But what’s $100 million or so?