Dollar Tree (NASDAQ:DLTR) Stock Bumped Down to Hold by Evercore

Key Points

• Evercore downgraded Dollar Tree from “strong buy” to “hold,” while the broader analyst consensus remains “hold,” with an average price target of $131.45.
• Dollar Tree reported strong quarterly results, earning $2.70 per share versus the $1.15 consensus estimate, while revenue rose 7% year over year to $4.89 billion.
• The company authorized a $2.5 billion share-repurchase program, covering up to 10.7% of outstanding shares; meanwhile, two insiders recently sold portions of their holdings.

Dollar Tree (NASDAQ:DLTR - Get Free Report) was downgraded by investment analysts at Evercore from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Tuesday, Zacks reports.

Several other equities analysts also recently weighed in on DLTR. Gordon Haskett raised shares of Dollar Tree from a "reduce" rating to a "hold" rating and set a $115.00 price target on the stock in a research note on Thursday, June 4th. Weiss Ratings raised shares of Dollar Tree from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, August 28th. Morgan Stanley upped their price objective on Dollar Tree from $130.00 to $145.00 and gave the company an "equal weight" rating in a report on Friday, August 28th. BMO Capital Markets reiterated a "market perform" rating and issued a $135.00 price objective on shares of Dollar Tree in a research report on Friday, August 28th. Finally, The Goldman Sachs Group reissued a "neutral" rating and set a $131.00 target price on shares of Dollar Tree in a research note on Monday, August 31st. Ten investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $131.45.

Dollar Tree Stock Performance

Shares of NASDAQ DLTR opened at $113.30 on Tuesday. The company has a market capitalization of $21.26 billion, a PE ratio of 13.83, a price-to-earnings-growth ratio of 1.07 and a beta of 0.66. The company has a debt-to-equity ratio of 0.86, a quick ratio of 0.39 and a current ratio of 1.13. The company's fifty day moving average price is $124.67 and its 200 day moving average price is $113.99. Dollar Tree has a 1 year low of $84.71 and a 1 year high of $142.40.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its quarterly earnings data on Thursday, August 27th. The company reported $2.70 earnings per share for the quarter, topping analysts' consensus estimates of $1.15 by $1.55. Dollar Tree had a net margin of 8.03% and a return on equity of 38.61%. The company had revenue of $4.89 billion during the quarter, compared to analysts' expectations of $4.86 billion. During the same period in the prior year, the business posted $0.77 earnings per share. The firm's revenue for the quarter was up 7.0% on a year-over-year basis. Dollar Tree has set its Q3 2026 guidance at 0.800-0.950 EPS and its FY 2026 guidance at 7.700-8.050 EPS. On average, research analysts predict that Dollar Tree will post 7.95 earnings per share for the current year.

Dollar Tree announced that its Board of Directors has initiated a share repurchase plan on Thursday, July 2nd that permits the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization permits the company to buy up to 10.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In other news, Director Stephanie Stahl sold 1,185 shares of the firm's stock in a transaction on Friday, September 4th. The stock was sold at an average price of $131.47, for a total transaction of $155,791.95. Following the completion of the transaction, the director directly owned 4,089 shares in the company, valued at $537,580.83. This trade represents a 22.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Robert Aflatooni sold 2,500 shares of Dollar Tree stock in a transaction on Monday, August 31st. The shares were sold at an average price of $126.01, for a total value of $315,025.00. Following the completion of the sale, the insider directly owned 24,820 shares of the company's stock, valued at $3,127,568.20. The trade was a 9.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 7.10% of the stock is owned by corporate insiders.

Institutional Trading of Dollar Tree

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Reflection Asset Management purchased a new position in shares of Dollar Tree in the fourth quarter valued at approximately $25,000. Basecamp Wealth Advisors LLC increased its stake in Dollar Tree by 59.9% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 259 shares of the company's stock worth $28,000 after buying an additional 97 shares during the period. EFG International AG acquired a new stake in Dollar Tree during the 2nd quarter worth approximately $30,000. Wilkerson Advisory Group LLC lifted its holdings in Dollar Tree by 80.1% during the 1st quarter. Wilkerson Advisory Group LLC now owns 263 shares of the company's stock worth $29,000 after buying an additional 117 shares in the last quarter. Finally, Keating Financial Advisory Services Inc. purchased a new position in Dollar Tree in the 2nd quarter valued at approximately $33,000. 97.40% of the stock is currently owned by hedge funds and other institutional investors.

About Dollar Tree

Dollar Tree, Inc operates discount variety stores under the Dollar Tree brand in the United States and Canada. Its stores offer a broad selection of everyday merchandise, including household supplies, food and beverages, health and personal-care products, seasonal items, toys, party supplies, and arts and crafts products.

The company's Dollar Tree stores historically focused on merchandise priced at a fixed dollar point and have expanded to include multiple price points through initiatives such as Dollar Tree Plus.

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