Truist Financial Forecasts Strong Price Appreciation for Dollar Tree (NASDAQ:DLTR) Stock

Key Points

• Truist Financial raised its Dollar Tree price target from $136 to $138 and maintained a “buy” rating, implying about 0.91% upside from the reported $136.75 share price.
• Analyst sentiment remains mixed: the stock has an average “hold” rating, with 10 buys, 12 holds and 4 sells, and an average price target of $125.27.
• Dollar Tree exceeded quarterly earnings expectations, reporting $1.74 in EPS versus $1.53 expected and $4.98 billion in revenue; the company also authorized a $2.5 billion share buyback covering up to 10.7% of outstanding shares.

Dollar Tree (NASDAQ:DLTR - Get Free Report) had its price target lifted by stock analysts at Truist Financial from $136.00 to $138.00 in a note issued to investors on Tuesday,Benzinga reports. The firm currently has a "buy" rating on the stock. Truist Financial's price objective points to a potential upside of 0.91% from the stock's current price.

Other research analysts have also recently issued reports about the company. Barclays cut Dollar Tree from an "overweight" rating to a "strong sell" rating in a research report on Wednesday, July 8th. Benchmark started coverage on shares of Dollar Tree in a research note on Wednesday, July 8th. They set a "hold" rating for the company. Bank of America reiterated an "underperform" rating on shares of Dollar Tree in a report on Thursday, May 28th. The Goldman Sachs Group lowered Dollar Tree from a "neutral" rating to a "hold" rating in a research note on Wednesday, July 8th. Finally, Gordon Haskett raised shares of Dollar Tree from a "reduce" rating to a "hold" rating and set a $115.00 price objective on the stock in a report on Thursday, June 4th. Ten investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $125.27.

Dollar Tree Trading Up 4.0%

Shares of DLTR opened at $136.75 on Tuesday. Dollar Tree has a fifty-two week low of $84.71 and a fifty-two week high of $142.40. The firm has a market cap of $26.28 billion, a price-to-earnings ratio of 21.37, a PEG ratio of 1.50 and a beta of 0.64. The firm has a 50 day moving average price of $124.40 and a 200-day moving average price of $114.47. The company has a debt-to-equity ratio of 0.84, a quick ratio of 0.39 and a current ratio of 1.16.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last released its earnings results on Thursday, May 28th. The company reported $1.74 EPS for the quarter, beating the consensus estimate of $1.53 by $0.21. The company had revenue of $4.98 billion for the quarter, compared to analyst estimates of $4.96 billion. Dollar Tree had a net margin of 6.51% and a return on equity of 35.19%. The firm's quarterly revenue was up 7.2% compared to the same quarter last year. During the same quarter last year, the firm earned $1.26 EPS. Dollar Tree has set its Q2 2026 guidance at 1.000-1.150 EPS. As a group, equities research analysts forecast that Dollar Tree will post 7.02 earnings per share for the current year.

Dollar Tree declared that its board has authorized a share buyback program on Thursday, July 2nd that authorizes the company to buyback $2.50 billion in shares. This buyback authorization authorizes the company to buy up to 10.7% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board believes its stock is undervalued.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Cetera Investment Advisers grew its stake in shares of Dollar Tree by 0.4% in the 4th quarter. Cetera Investment Advisers now owns 21,420 shares of the company's stock valued at $2,635,000 after purchasing an additional 79 shares during the last quarter. Optimize Financial Inc raised its stake in shares of Dollar Tree by 1.4% during the fourth quarter. Optimize Financial Inc now owns 6,000 shares of the company's stock worth $738,000 after purchasing an additional 84 shares during the last quarter. Covestor Ltd raised its stake in shares of Dollar Tree by 60.9% during the fourth quarter. Covestor Ltd now owns 222 shares of the company's stock worth $27,000 after purchasing an additional 84 shares during the last quarter. Root Financial Partners LLC lifted its holdings in shares of Dollar Tree by 27.6% during the fourth quarter. Root Financial Partners LLC now owns 393 shares of the company's stock worth $48,000 after purchasing an additional 85 shares during the period. Finally, Deseret Mutual Benefit Administrators lifted its holdings in shares of Dollar Tree by 7.7% during the fourth quarter. Deseret Mutual Benefit Administrators now owns 1,208 shares of the company's stock worth $149,000 after purchasing an additional 86 shares during the period. Institutional investors and hedge funds own 97.40% of the company's stock.

About Dollar Tree

Dollar Tree, Inc is a North American discount retailer that operates a portfolio of value-oriented store banners, primarily Dollar Tree and Family Dollar. The company's stores offer a broad assortment of everyday items at low price points, including household essentials, food and snacks, health and beauty products, cleaning supplies, seasonal and party goods, home décor, and basic apparel. Dollar Tree's merchandising strategy emphasizes high-turnover branded and private-label merchandise tailored to budget-conscious consumers, with Family Dollar complementing the chain by offering a wider range of price points and assortment depth in smaller-format neighborhood locations.

Founded in 1986 and headquartered in Chesapeake, Virginia, Dollar Tree has grown through both organic store openings and acquisitions.

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