Dollar General Stock Soars to Record Highs Again After Bull Notes

The retailer has seen long-term support at the 160-day moving average

Shares of dollar store retailer Dollar General Corp. (NYSE:DG) are inching their way higher this morning, as the company relishes in yesterday morning's second-quarter earnings beat. No fewer than nine analysts have handed out fresh bull notes since yesterday's close. Giving the highest praise so far is a price-target hike to $180 from $146 out of Raymond James, which was accompanied by an "outperform" rating. At last check, DG was trading 1.4% higher at $158.06, earlier touching a fresh record high of $158.89.

Overall analysts have been wildly optimistic when it comes to Dollar General stock. Coming into today, 15 of 19 carry a "buy" or "strong buy" rating. However, the security may have been ripe for price-target hikes, as its average 12-month price target of $160.27 runs in-line with current trading levels.

The optimistic sentiment is also evident in the options pits. Data from the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows DG with a 10-day call/put volume ratio of 2.09, ranking in the 85th annual percentile. In other terms, two calls have been purchased for every put over the past two weeks of trading.

Apart from this morning's impressive bull gap to record highs, Dollar General stock has been climbing the charts for quite some time. The 160-day moving average has been a long-term mode of support, guiding the shares to its now 46% year-to-date lead.