Dollar Tree, Inc. (NASDAQ:DLTR) Receives Average Rating of "Hold" from Brokerages

Key Points

• Dollar Tree has received an average rating of "Hold" from analysts, with three sell ratings, eleven hold ratings, and eight buy ratings for the stock.
• The company reported a quarterly earnings per share (EPS) of $0.77, exceeding consensus estimates, and has set its fiscal year 2025 EPS guidance between 5.320-5.720.
• Dollar Tree's Board of Directors approved a stock buyback plan allowing for the repurchase of $2.50 billion in outstanding shares, which typically indicates a belief that the stock is undervalued.

Dollar Tree, Inc. (NASDAQ:DLTR - Get Free Report) has been assigned an average rating of "Hold" from the twenty-two analysts that are covering the company, MarketBeat Ratings reports. Three analysts have rated the stock with a sell rating, eleven have issued a hold rating and eight have assigned a buy rating to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $111.2941.

DLTR has been the subject of a number of research analyst reports. Guggenheim cut their target price on shares of Dollar Tree from $130.00 to $125.00 and set a "buy" rating for the company in a research report on Monday, September 8th. Barclays upgraded Dollar Tree from an "equal weight" rating to an "overweight" rating and lifted their price objective for the stock from $95.00 to $138.00 in a research note on Monday, July 21st. Morgan Stanley increased their price objective on Dollar Tree from $96.00 to $105.00 and gave the company an "equal weight" rating in a research report on Friday, September 5th. Gordon Haskett lowered shares of Dollar Tree from a "hold" rating to a "reduce" rating and set a $95.00 price target on the stock. in a research report on Wednesday, September 3rd. Finally, UBS Group restated a "buy" rating and set a $140.00 price target on shares of Dollar Tree in a research note on Tuesday, August 26th.

Dollar Tree Stock Up 1.1%

Shares of DLTR stock opened at $95.06 on Friday. The stock's 50 day simple moving average is $107.84 and its 200 day simple moving average is $93.65. Dollar Tree has a twelve month low of $60.49 and a twelve month high of $118.06. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.27 and a current ratio of 1.04. The company has a market capitalization of $19.39 billion, a price-to-earnings ratio of -7.01, a PEG ratio of 1.71 and a beta of 0.89.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last announced its quarterly earnings results on Wednesday, September 3rd. The company reported $0.77 EPS for the quarter, beating the consensus estimate of $0.38 by $0.39. Dollar Tree had a positive return on equity of 23.52% and a negative net margin of 13.46%.The company had revenue of $4.57 billion for the quarter, compared to the consensus estimate of $4.46 billion. During the same quarter last year, the company posted $0.67 earnings per share. The company's revenue for the quarter was up 12.3% compared to the same quarter last year. Dollar Tree has set its FY 2025 guidance at 5.320-5.720 EPS. As a group, research analysts predict that Dollar Tree will post 5.39 EPS for the current year.

Dollar Tree announced that its Board of Directors has initiated a stock buyback plan on Wednesday, July 9th that allows the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization allows the company to reacquire up to 11.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its stock is undervalued.

Insider Activity at Dollar Tree

In other news, Director Stephanie Stahl sold 1,185 shares of the firm's stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $100.32, for a total transaction of $118,879.20. Following the completion of the transaction, the director directly owned 4,089 shares of the company's stock, valued at approximately $410,208.48. This trade represents a 22.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 6.60% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD grew its position in Dollar Tree by 69.6% in the first quarter. Price T Rowe Associates Inc. MD now owns 5,848,196 shares of the company's stock valued at $439,025,000 after acquiring an additional 2,400,586 shares during the period. Alliancebernstein L.P. boosted its stake in shares of Dollar Tree by 176.9% in the 2nd quarter. Alliancebernstein L.P. now owns 3,746,222 shares of the company's stock valued at $371,026,000 after purchasing an additional 2,393,172 shares in the last quarter. Alyeska Investment Group L.P. grew its holdings in shares of Dollar Tree by 1,055.1% in the 1st quarter. Alyeska Investment Group L.P. now owns 2,322,189 shares of the company's stock worth $174,327,000 after purchasing an additional 2,121,149 shares during the last quarter. Norges Bank acquired a new stake in shares of Dollar Tree during the 2nd quarter worth about $185,784,000. Finally, EdgePoint Investment Group Inc. boosted its position in Dollar Tree by 21.4% in the first quarter. EdgePoint Investment Group Inc. now owns 9,641,507 shares of the company's stock valued at $723,788,000 after buying an additional 1,701,344 shares in the last quarter. Institutional investors own 97.40% of the company's stock.

About Dollar Tree

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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