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

Key Points

• Dollar Tree has a consensus analyst rating of “Hold” from 26 covering firms, with 4 sells, 12 holds, and 10 buys. The average 1-year price target is about $122.68.
• The company recently beat quarterly earnings estimates, reporting $1.74 EPS versus $1.53 expected, while revenue came in slightly above forecasts at $4.98 billion. Revenue also rose 7.2% year over year.
• Dollar Tree’s board approved a $2.5 billion share buyback on July 2, authorizing repurchases of up to 10.7% of outstanding shares. Management often sees buybacks as a sign the stock may be undervalued.

Shares of Dollar Tree, Inc. (NASDAQ:DLTR - Get Free Report) have earned a consensus recommendation of "Hold" from the twenty-six ratings firms that are covering the stock, Marketbeat.com reports. Four investment analysts have rated the stock with a sell recommendation, twelve have issued a hold recommendation and ten have assigned a buy recommendation to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $122.6818.

Several research analysts recently issued reports on DLTR shares. Sanford C. Bernstein increased their price target on shares of Dollar Tree from $115.00 to $124.00 and gave the stock a "market perform" rating in a research note on Friday, May 29th. Freedom Capital cut Dollar Tree from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 28th. JPMorgan Chase & Co. increased their price objective on shares of Dollar Tree from $160.00 to $170.00 and gave the company an "overweight" rating in a research report on Monday, July 6th. Wall Street Zen raised Dollar Tree from a "hold" rating to a "buy" rating in a report on Saturday, June 6th. Finally, BNP Paribas Exane lifted their price target on shares of Dollar Tree from $88.00 to $98.00 and gave the stock an "underperform" rating in a research note on Friday, May 29th.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. SG Americas Securities LLC increased its holdings in shares of Dollar Tree by 261.9% in the fourth quarter. SG Americas Securities LLC now owns 177,196 shares of the company's stock worth $21,797,000 after purchasing an additional 128,230 shares during the last quarter. Wealthfront Advisers LLC grew its position in Dollar Tree by 13.7% in the first quarter. Wealthfront Advisers LLC now owns 76,985 shares of the company's stock worth $8,431,000 after acquiring an additional 9,288 shares in the last quarter. Hanseatic Management Services Inc. purchased a new position in Dollar Tree in the first quarter worth about $950,000. Arrowstreet Capital Limited Partnership increased its position in shares of Dollar Tree by 4.7% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,821,852 shares of the company's stock valued at $224,106,000 after purchasing an additional 81,695 shares during the last quarter. Finally, Capital International Inc. CA increased its position in Dollar Tree by 1,920.0% during the fourth quarter. Capital International Inc. CA now owns 116,109 shares of the company's stock valued at $14,283,000 after acquiring an additional 110,361 shares during the last quarter. Institutional investors own 97.40% of the company's stock.

Dollar Tree Stock Performance

Shares of DLTR stock opened at $117.65 on Friday. The stock has a fifty day moving average of $113.45 and a 200 day moving average of $114.57. Dollar Tree has a 52 week low of $84.71 and a 52 week high of $142.40. The company has a quick ratio of 0.39, a current ratio of 1.16 and a debt-to-equity ratio of 0.84. The firm has a market capitalization of $22.61 billion, a price-to-earnings ratio of 18.38, a PEG ratio of 1.39 and a beta of 0.65.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last announced its earnings results on Thursday, May 28th. The company reported $1.74 earnings per share for the quarter, beating analysts' consensus estimates of $1.53 by $0.21. Dollar Tree had a net margin of 6.51% and a return on equity of 35.19%. The firm had revenue of $4.98 billion for the quarter, compared to analyst estimates of $4.96 billion. During the same quarter in the previous year, the firm posted $1.26 EPS. The company's revenue for the quarter was up 7.2% compared to the same quarter last year. Dollar Tree has set its Q2 2026 guidance at 1.000-1.150 EPS. As a group, research analysts expect that Dollar Tree will post 7 earnings per share for the current year.

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

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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