Dollar Tree (NASDAQ:DLTR) Stock Dropped to Hold by Loop Capital

Key Points

• Loop Capital downgraded Dollar Tree from Buy to Hold and set a $140 price target, implying 4.76% downside from the stock’s current price.
• Analyst sentiment is mixed but averages to Hold: 10 analysts rate the stock Buy, 14 Hold, and 2 Sell, with a consensus price target of $133.14.
• Dollar Tree reported quarterly EPS of $2.70, beating the $1.15 consensus estimate, while revenue rose 7% year over year to $4.89 billion.

Dollar Tree (NASDAQ:DLTR - Get Free Report) was downgraded by research analysts at Loop Capital from a "buy" rating to a "hold" rating in a research report issued on Thursday, MarketBeat reports. They currently have a $140.00 target price on the stock. Loop Capital's price target suggests a potential downside of 4.76% from the stock's current price.

Several other analysts have also issued reports on the stock. BMO Capital Markets restated a "market perform" rating and issued a $135.00 price objective on shares of Dollar Tree in a report on Friday, August 28th. UBS Group upped their price objective on shares of Dollar Tree from $145.00 to $150.00 and gave the stock a "buy" rating in a report on Friday, August 28th. Wall Street Zen raised shares of Dollar Tree from a "hold" rating to a "buy" rating in a research report on Saturday, August 22nd. Guggenheim lifted their target price on shares of Dollar Tree from $135.00 to $145.00 and gave the company a "buy" rating in a report on Tuesday, August 25th. Finally, Raymond James Financial reissued an "outperform" rating and issued a $145.00 target price on shares of Dollar Tree in a research report on Friday, August 28th. Ten equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $133.14.

Dollar Tree Trading Up 9.6%

Shares of Dollar Tree stock opened at $147.00 on Thursday. The firm has a market capitalization of $27.58 billion, a price-to-earnings ratio of 17.95, a PEG ratio of 1.24 and a beta of 0.64. Dollar Tree has a fifty-two week low of $85.88 and a fifty-two week high of $148.37. 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 stock has a 50 day moving average of $122.13 and a 200 day moving average of $117.16.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its earnings results on Thursday, August 27th. The company reported $2.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.15 by $1.55. Dollar Tree had a return on equity of 38.61% and a net margin of 8.03%. The company had revenue of $4.89 billion during the quarter, compared to analysts' expectations of $4.86 billion. During the same quarter last year, the firm earned $0.77 earnings per share. The firm's quarterly revenue was up 7.0% compared to the same quarter last year. 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. As a group, research analysts predict that Dollar Tree will post 7.92 earnings per share for the current year.

Insider Activity

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

Hedge Funds Weigh In On Dollar Tree

Several institutional investors have recently modified their holdings of DLTR. Basecamp Wealth Advisors LLC increased its holdings in shares of Dollar Tree by 59.9% in the first quarter. Basecamp Wealth Advisors LLC now owns 259 shares of the company's stock valued at $28,000 after purchasing an additional 97 shares during the period. EFG International AG acquired a new stake in shares of Dollar Tree during the second quarter worth $30,000. Wilkerson Advisory Group LLC lifted its holdings in shares of Dollar Tree by 80.1% during the first quarter. Wilkerson Advisory Group LLC now owns 263 shares of the company's stock worth $29,000 after purchasing an additional 117 shares during the period. Keating Financial Advisory Services Inc. purchased a new position in Dollar Tree in the 2nd quarter valued at $33,000. Finally, Trust Co. of Vermont purchased a new position in Dollar Tree in the 2nd quarter valued at $36,000. Institutional investors and hedge funds own 97.40% of the company's stock.

Dollar Tree Company Profile

Dollar Tree, Inc NASDAQ: DLTR is a discount retailer that operates stores under the Dollar Tree brand in the United States and Canada. Its stores offer a broad selection of merchandise at value-oriented prices, including consumable products, household supplies, health and personal-care items, seasonal goods, toys, party supplies, crafts, and other general merchandise.

The company traces its history to 1986, when its first store opened in Norfolk, Virginia. It later expanded through organic growth and acquisitions, including its 2015 acquisition of Family Dollar, a chain serving primarily urban and rural communities with everyday household and grocery products.

Dollar Tree announced plans to separate from the Family Dollar business and completed the sale in 2025.

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