Dollar Tree (NASDAQ:DLTR) Cut to "Hold" at Freedom Capital

Key Points

• Freedom Capital downgraded Dollar Tree from “strong-buy” to “hold,” even as other analysts remained mixed with a consensus rating of “Hold” and an average price target of $119.90.
• The company beat quarterly expectations, reporting EPS of $1.74 versus $1.53 expected and revenue of $4.98 billion, up 7.2% year over year.
• Management raised its FY2026 outlook, and the stock was trading up about 3% on the day, though some analysts still warned about traffic and margin sustainability.

Dollar Tree (NASDAQ:DLTR - Get Free Report) was downgraded by investment analysts at Freedom Capital from a "strong-buy" rating to a "hold" rating in a research note issued on Thursday,Zacks.com reports.

Several other equities research analysts also recently weighed in on the company. Jefferies Financial Group reissued an "underperform" rating and set a $85.00 price objective on shares of Dollar Tree in a report on Friday. Gordon Haskett raised their price objective on Dollar Tree from $90.00 to $100.00 in a report on Friday. Sanford C. Bernstein raised their price objective on Dollar Tree from $115.00 to $124.00 and gave the company a "market perform" rating in a report on Friday. BMO Capital Markets reaffirmed an "underperform" rating on shares of Dollar Tree in a research report on Tuesday, March 17th. Finally, Evercore set a $140.00 target price on Dollar Tree in a report on Monday, May 18th. Eight analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and six have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $119.90.

Dollar Tree Trading Up 3.0%

NASDAQ DLTR opened at $116.44 on Thursday. The company has a quick ratio of 0.29, a current ratio of 1.16 and a debt-to-equity ratio of 0.84. Dollar Tree has a twelve month low of $84.71 and a twelve month high of $142.40. The company has a market cap of $22.67 billion, a price-to-earnings ratio of 18.19, a price-to-earnings-growth ratio of 1.40 and a beta of 0.61. The business's fifty day moving average is $100.73 and its 200 day moving average is $114.02.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last released its quarterly earnings data on Thursday, May 28th. The company reported $1.74 earnings per share for the quarter, beating the consensus estimate of $1.53 by $0.21. Dollar Tree had a return on equity of 35.19% and a net margin of 6.51%.The company had revenue of $4.98 billion for the quarter, compared to the consensus estimate of $4.96 billion. During the same quarter last year, the business posted $1.26 EPS. Dollar Tree's revenue for the quarter was up 7.2% on a year-over-year basis. Dollar Tree has set its Q2 2026 guidance at 1.000-1.150 EPS. As a group, sell-side analysts expect that Dollar Tree will post 6.79 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Cullen Frost Bankers Inc. acquired a new stake in shares of Dollar Tree in the 4th quarter valued at about $25,000. Reflection Asset Management bought a new position in shares of Dollar Tree in the fourth quarter valued at $25,000. Covestor Ltd grew its holdings in shares of Dollar Tree by 60.9% during the fourth quarter. Covestor Ltd now owns 222 shares of the company's stock valued at $27,000 after buying an additional 84 shares during the last quarter. Wilkerson Advisory Group LLC increased its position in shares of Dollar Tree by 80.1% during the first quarter. Wilkerson Advisory Group LLC now owns 263 shares of the company's stock worth $29,000 after acquiring an additional 117 shares in the last quarter. Finally, YANKCOM Partnership bought a new stake in shares of Dollar Tree during the fourth quarter worth about $31,000. 97.40% of the stock is owned by institutional investors.

Dollar Tree News Summary

Here are the key news stories impacting Dollar Tree this week:

• Positive Sentiment: Dollar Tree reported first-quarter EPS of $1.74, beating expectations, with revenue of $4.98 billion also slightly ahead of forecasts. The company said demand remained solid as consumers continued trading down to value retailers. Dollar Tree, Inc. Reports First Quarter Results
• Positive Sentiment: Management raised FY2026 EPS guidance to $6.70-$7.10, above consensus, and also guided revenue higher than analysts expected, signaling better profitability and momentum ahead. Dollar Tree raises its annual profit forecast
• Positive Sentiment: The company’s new DoorDash partnership adds a growth angle by making Dollar Tree products available for on-demand delivery, which could help broaden customer access and boost sales. Dollar Tree Is Now On DoorDash
• Neutral Sentiment: Several analysts lifted price targets after the report, but ratings remained mixed, with upgrades in valuation expectations offset by continued caution from firms that still see limited upside at current levels. Goldman Sachs Adjusts Price Target on Dollar Tree
• Neutral Sentiment: Goldman Sachs kept a Sell rating, and other firms such as BNP Paribas Exane and Jefferies also stayed bearish, citing traffic and margin sustainability concerns despite the earnings beat. Corey Tarlowe Maintains Sell on Dollar Tree
• Negative Sentiment: Goldman Sachs and BNP Paribas Exane still see downside from the current price, and Goldman’s latest target cut reinforces the view that some analysts think the stock has moved ahead of fundamentals after the sharp post-earnings rally. Goldman Sachs Adjusts Price Target on Dollar Tree

Dollar Tree Company Profile

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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