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

Key Points

• Wall Street Zen downgraded Dollar Tree from “Buy” to “Hold.” The broader analyst consensus is also “Hold,” with 10 Buy, 12 Hold, and 4 Sell ratings and an average price target of $122.82.
• Dollar Tree reported quarterly EPS of $1.74, beating estimates of $1.53, while revenue reached $4.98 billion and rose 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 collectively own 97.4% of the stock.

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

DLTR has been the subject of a number of other research reports. Deutsche Bank Aktiengesellschaft increased their price target on Dollar Tree from $99.00 to $102.00 and gave the company a "hold" rating in a research report on Thursday, June 4th. Weiss Ratings upgraded Dollar Tree from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, June 18th. Benchmark initiated coverage on shares of Dollar Tree in a research note on Wednesday, July 8th. They set a "hold" rating for the company. Piper Sandler decreased their target price on shares of Dollar Tree from $116.00 to $101.00 and set a "neutral" rating for the company in a report on Tuesday, May 26th. Finally, BNP Paribas Exane lifted their target price on shares of Dollar Tree from $88.00 to $98.00 and gave the stock an "underperform" rating in a research report on Friday, May 29th. Ten investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $122.82.

Dollar Tree Price Performance

NASDAQ DLTR opened at $127.21 on Friday. The stock has a market capitalization of $24.45 billion, a P/E ratio of 19.88, a P/E/G ratio of 1.47 and a beta of 0.65. Dollar Tree has a 1 year low of $84.71 and a 1 year high of $142.40. The business's fifty day moving average is $117.49 and its two-hundred day moving average is $114.47. The company has a debt-to-equity ratio of 0.84, a quick ratio of 0.39 and a current ratio of 1.16.

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

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

Hedge Funds Weigh In On Dollar Tree

Institutional investors and hedge funds have recently bought and sold shares of the business. State Street Corp boosted its holdings in shares of Dollar Tree by 3.5% during the third quarter. State Street Corp now owns 9,421,856 shares of the company's stock worth $889,141,000 after purchasing an additional 319,938 shares during the period. Alliancebernstein L.P. increased its stake in 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 buying an additional 2,393,172 shares during the period. Invesco Ltd. lifted its position in Dollar Tree by 1.5% in the 4th quarter. Invesco Ltd. now owns 2,719,303 shares of the company's stock worth $334,501,000 after buying an additional 39,506 shares in the last quarter. Norges Bank purchased a new stake in Dollar Tree in the 4th quarter worth approximately $260,858,000. Finally, Arrowstreet Capital Limited Partnership boosted its stake 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 buying an additional 81,695 shares during the period. Hedge funds and other institutional investors own 97.40% of the company's stock.

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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