Citigroup Lowers Dollar Tree (NASDAQ:DLTR) Price Target to $124.00

Key Points

• Citigroup has reduced its price target for Dollar Tree from $130.00 to $124.00, while maintaining a "buy" rating, suggesting a potential upside of 24.74% from the company's previous close.
• A recent earnings report showed Dollar Tree exceeded analysts' expectations with $0.77 earnings per share and a revenue of $4.57 billion, marking a 12.3% year-over-year increase.
• The company has initiated a share repurchase plan allowing for the buyback of up to $2.50 billion of its outstanding shares, signaling confidence in the stock's valuation.

Dollar Tree (NASDAQ:DLTR - Get Free Report) had its price objective reduced by analysts at Citigroup from $130.00 to $124.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Citigroup's price target suggests a potential upside of 24.74% from the company's previous close.

A number of other research analysts have also weighed in on the stock. Gordon Haskett lowered shares of Dollar Tree from a "hold" rating to a "reduce" rating and set a $95.00 target price on the stock. in a research note on Wednesday. Guggenheim reissued a "buy" rating and issued a $100.00 target price on shares of Dollar Tree in a research note on Thursday, June 5th. The Goldman Sachs Group lowered shares of Dollar Tree from a "strong-buy" rating to a "strong sell" rating in a research report on Thursday, June 5th. UBS Group reaffirmed a "buy" rating and set a $140.00 price target on shares of Dollar Tree in a research report on Tuesday, August 26th. Finally, Truist Financial lifted their price target on shares of Dollar Tree from $127.00 to $129.00 and gave the company a "buy" rating in a research report on Wednesday. Eight analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Dollar Tree has a consensus rating of "Hold" and a consensus target price of $105.10.

Dollar Tree Price Performance

DLTR traded down $2.62 during trading on Thursday, reaching $99.41. The company's stock had a trading volume of 2,522,884 shares, compared to its average volume of 4,141,186. The company has a quick ratio of 0.72, a current ratio of 1.04 and a debt-to-equity ratio of 0.62. The firm has a fifty day simple moving average of $110.35 and a two-hundred day simple moving average of $90.69. Dollar Tree has a 1 year low of $60.49 and a 1 year high of $118.06. The company has a market cap of $20.75 billion, a price-to-earnings ratio of -7.16, a PEG ratio of 2.32 and a beta of 0.89.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last released its earnings results on Wednesday, September 3rd. The company reported $0.77 earnings per share for the quarter, topping analysts' consensus estimates of $0.38 by $0.39. Dollar Tree had a negative net margin of 12.15% and a positive return on equity of 19.36%. The business had revenue of $4.57 billion for the quarter, compared to analyst estimates of $4.46 billion. During the same period last year, the company posted $0.67 EPS. The business's revenue was up 12.3% on a year-over-year basis. Dollar Tree has set its FY 2025 guidance at 5.320-5.720 EPS. As a group, analysts anticipate that Dollar Tree will post 5.39 EPS for the current year.

Dollar Tree announced that its Board of Directors has initiated a share repurchase plan on Wednesday, July 9th that permits the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization permits the company to buy up to 11.5% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at Dollar Tree

In other Dollar Tree news, CMO Richard L. Mcneely sold 21,026 shares of the business's stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $94.62, for a total value of $1,989,480.12. Following the sale, the chief marketing officer owned 50,419 shares of the company's stock, valued at $4,770,645.78. The trade was a 29.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 6.60% of the stock is currently owned by insiders.

Institutional Trading of Dollar Tree

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DLTR. Horizon Investments LLC increased its holdings in Dollar Tree by 5.1% in the first quarter. Horizon Investments LLC now owns 2,905 shares of the company's stock valued at $218,000 after buying an additional 140 shares during the last quarter. Applied Finance Capital Management LLC boosted its stake in Dollar Tree by 2.6% in the second quarter. Applied Finance Capital Management LLC now owns 5,507 shares of the company's stock valued at $545,000 after acquiring an additional 140 shares in the last quarter. Compton Wealth Advisory Group LLC boosted its stake in Dollar Tree by 0.4% in the second quarter. Compton Wealth Advisory Group LLC now owns 34,561 shares of the company's stock valued at $3,423,000 after acquiring an additional 148 shares in the last quarter. Brooklyn Investment Group boosted its stake in Dollar Tree by 79.0% in the first quarter. Brooklyn Investment Group now owns 358 shares of the company's stock valued at $27,000 after acquiring an additional 158 shares in the last quarter. Finally, Private Trust Co. NA boosted its stake in Dollar Tree by 11.6% in the first quarter. Private Trust Co. NA now owns 1,527 shares of the company's stock valued at $115,000 after acquiring an additional 159 shares in the last quarter. Hedge funds and other institutional investors own 97.40% of the company's stock.

Dollar Tree Company Profile

Dollar Tree, Inc operates retail discount stores. The company operates in two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $ 1.25. It provides consumable merchandise, which includes everyday consumables, such as household paper and chemicals, food, candy, health, personal care products, and frozen and refrigerated food; variety merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, arts and crafts supplies, and other items; and seasonal goods that include Christmas, Easter, Halloween, and Valentine's Day merchandise.

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