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

Key Points

• Analysts hold a consensus “Hold” rating on Dollar Tree, with 12 holds, 10 buys and four sells among 26 analysts. The average 12-month price target is $123.41, below the reported share price of $129.54.
• Dollar Tree’s latest quarterly results exceeded expectations, with earnings per share of $1.74 versus a $1.53 consensus estimate and revenue of $4.98 billion. Revenue increased 7.2% year over year.
• The company authorized a $2.5 billion share-repurchase program, allowing it to buy back up to 10.7% of outstanding shares; institutional investors already own 97.4% of the stock.

Dollar Tree, Inc. (NASDAQ:DLTR - Get Free Report) has earned a consensus rating of "Hold" from the twenty-six brokerages that are currently covering the company, MarketBeat reports. Four equities research analysts have rated the stock with a sell rating, twelve have issued a hold rating and ten have issued a buy rating on the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $123.4091.

A number of equities analysts have recently commented on the company. Sanford C. Bernstein boosted their price objective on Dollar Tree from $124.00 to $127.00 and gave the stock a "market perform" rating in a research report on Friday, July 31st. Freedom Capital cut shares of Dollar Tree from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 28th. The Goldman Sachs Group downgraded shares of Dollar Tree from a "neutral" rating to a "hold" rating in a research note on Wednesday, July 8th. Raymond James Financial upgraded shares of Dollar Tree from a "market perform" rating to an "outperform" rating and set a $140.00 price target for the company in a report on Wednesday, July 8th. Finally, BMO Capital Markets increased their price objective on shares of Dollar Tree from $90.00 to $98.00 and gave the company an "underperform" rating in a research report on Tuesday, August 11th.

Hedge Funds Weigh In On Dollar Tree

Several large investors have recently bought and sold shares of DLTR. Cullen Frost Bankers Inc. acquired a new position in shares of Dollar Tree during the 4th quarter worth about $25,000. Reflection Asset Management acquired a new stake in Dollar Tree during the 4th quarter worth $25,000. Covestor Ltd increased its stake in Dollar Tree by 60.9% in the fourth quarter. Covestor Ltd now owns 222 shares of the company's stock valued at $27,000 after purchasing an additional 84 shares during the period. Basecamp Wealth Advisors LLC increased its stake in 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. Finally, Wilkerson Advisory Group LLC raised its holdings in shares of Dollar Tree by 80.1% in the first quarter. Wilkerson Advisory Group LLC now owns 263 shares of the company's stock valued at $29,000 after buying an additional 117 shares during the last quarter. Hedge funds and other institutional investors own 97.40% of the company's stock.

Dollar Tree Stock Up 0.1%

Shares of NASDAQ DLTR opened at $129.54 on Tuesday. The stock has a market cap of $24.89 billion, a P/E ratio of 20.24, a PEG ratio of 1.48 and a beta of 0.64. The business's fifty day simple moving average is $122.51 and its 200-day simple moving average is $113.99. Dollar Tree has a 12-month low of $84.71 and a 12-month high of $142.40. The company has a current ratio of 1.16, a quick ratio of 0.39 and a debt-to-equity ratio of 0.84.

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, topping the consensus estimate of $1.53 by $0.21. The firm had revenue of $4.98 billion during the quarter, compared to analysts' expectations of $4.96 billion. Dollar Tree had a return on equity of 35.19% and a net margin of 6.51%.Dollar Tree's revenue for the quarter was up 7.2% on a year-over-year basis. During the same period in the previous year, the firm posted $1.26 EPS. Dollar Tree has set its Q2 2026 guidance at 1.000-1.150 EPS. As a group, equities analysts predict that Dollar Tree will post 7 EPS for the current fiscal year.

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