Dollar Tree (NASDAQ:DLTR) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Dollar Tree (NASDAQ:DLTR) from a "buy" to a "hold", and the analyst consensus remains a Hold with a $123.24 target (8 Buy / 9 Hold / 7 Sell).
• In the latest quarter Dollar Tree reported $2.56 EPS, beating estimates by $0.03 while revenue was $5.45 billion—slightly below expectations—with revenue up 9% year-over-year and a net margin of 6.61%.
• The stock opened at $107 with a market cap of $21.11 billion and a P/E of 17.12 (52-week range $61.87–$142.40), and institutional investors own about 97.4% of shares with large stakes added by funds like AllianceBernstein and Norges Bank.

Dollar Tree (NASDAQ:DLTR - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Sunday.

Other analysts have also recently issued research reports about the stock. BMO Capital Markets restated an "underperform" rating on shares of Dollar Tree in a report on Tuesday, March 17th. Morgan Stanley decreased their price target on shares of Dollar Tree from $146.00 to $126.00 and set an "equal weight" rating for the company in a research note on Tuesday, March 17th. Jefferies Financial Group lifted their price target on shares of Dollar Tree from $75.00 to $80.00 and gave the company an "underperform" rating in a research report on Tuesday, March 17th. Wells Fargo & Company boosted their price objective on shares of Dollar Tree from $125.00 to $145.00 and gave the stock an "overweight" rating in a research note on Friday, December 19th. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $126.00 price objective on shares of Dollar Tree in a report on Thursday, January 8th. Eight investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and seven have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $123.24.

Dollar Tree Stock Up 1.0%

Shares of NASDAQ:DLTR opened at $107.00 on Friday. The firm has a market capitalization of $21.11 billion, a P/E ratio of 17.12, a P/E/G ratio of 1.34 and a beta of 0.73. The company has a debt-to-equity ratio of 0.65, a quick ratio of 0.29 and a current ratio of 1.07. The stock has a 50 day moving average price of $120.43 and a 200-day moving average price of $112.99. Dollar Tree has a 52-week low of $61.87 and a 52-week high of $142.40.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last released its quarterly earnings results on Monday, March 16th. The company reported $2.56 earnings per share for the quarter, beating the consensus estimate of $2.53 by $0.03. The company had revenue of $5.45 billion for the quarter, compared to analyst estimates of $5.46 billion. Dollar Tree had a return on equity of 32.24% and a net margin of 6.61%.The firm's revenue was up 9.0% on a year-over-year basis. During the same period in the previous year, the company posted $2.11 earnings per share. As a group, equities research analysts anticipate that Dollar Tree will post 5.39 EPS for the current fiscal year.

Hedge Funds Weigh In On Dollar Tree

A number of hedge funds have recently bought and sold shares of DLTR. Alliancebernstein L.P. raised its holdings in Dollar Tree by 176.9% in the second quarter. Alliancebernstein L.P. now owns 3,746,222 shares of the company's stock worth $371,026,000 after buying an additional 2,393,172 shares during the last quarter. Norges Bank purchased a new stake in shares of Dollar Tree during the fourth quarter valued at approximately $260,858,000. Jupiter Asset Management Ltd. bought a new stake in shares of Dollar Tree during the third quarter valued at approximately $118,811,000. Voya Investment Management LLC increased its position in shares of Dollar Tree by 103.1% during the third quarter. Voya Investment Management LLC now owns 2,406,748 shares of the company's stock valued at $226,729,000 after acquiring an additional 1,222,028 shares in the last quarter. Finally, EdgePoint Investment Group Inc. increased its position in shares of Dollar Tree by 12.3% during the second quarter. EdgePoint Investment Group Inc. now owns 10,825,801 shares of the company's stock valued at $1,072,187,000 after acquiring an additional 1,184,294 shares in the last quarter. Institutional investors own 97.40% of the company's stock.

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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