Dollar Tree (NASDAQ:DLTR) Given New $140.00 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan Chase & Co. raised Dollar Tree's price target from $138.00 to $140.00, indicating a potential upside of 40.55% from its current stock price.
• Dollar Tree reported $0.77 earnings per share for the last quarter, exceeding the consensus estimate of $0.38, with revenues of $4.57 billion reflecting a 12.3% year-over-year increase.
• The company has launched a $2.50 billion share repurchase plan, allowing it to buy back up to 11.5% of its stock, signaling that its board believes the shares are undervalued.

Dollar Tree (NASDAQ:DLTR - Get Free Report) had its price target raised by research analysts at JPMorgan Chase & Co. from $138.00 to $140.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s target price would suggest a potential upside of 40.55% from the company's current price.

A number of other equities research analysts have also commented on the stock. Piper Sandler dropped their price objective on shares of Dollar Tree from $112.00 to $108.00 and set a "neutral" rating on the stock in a report on Thursday. Barclays upgraded shares of Dollar Tree from an "equal weight" rating to an "overweight" rating and raised their price objective for the stock from $95.00 to $138.00 in a report on Monday, July 21st. BMO Capital Markets raised their price objective on shares of Dollar Tree from $80.00 to $85.00 and gave the stock a "market perform" rating in a report on Thursday, June 5th. Morgan Stanley raised their price objective on shares of Dollar Tree from $80.00 to $96.00 and gave the stock an "equal weight" rating in a report on Thursday, June 5th. Finally, Cfra Research upgraded shares of Dollar Tree to a "hold" rating in a research note on Wednesday, May 28th. Eight analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $104.05.

Dollar Tree Trading Down 2.4%

DLTR stock traded down $2.42 during midday trading on Thursday, reaching $99.61. The company's stock had a trading volume of 1,299,242 shares, compared to its average volume of 4,131,688. Dollar Tree has a 52 week low of $60.49 and a 52 week high of $118.06. The stock has a market cap of $20.79 billion, a PE ratio of -7.18, a price-to-earnings-growth ratio of 2.32 and a beta of 0.89. The company has a quick ratio of 0.72, a current ratio of 1.04 and a debt-to-equity ratio of 0.62. The business's 50-day simple moving average is $110.35 and its 200-day simple moving average is $90.69.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last announced its quarterly earnings results on Wednesday, September 3rd. The company reported $0.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.38 by $0.39. Dollar Tree had a negative net margin of 12.15% and a positive return on equity of 19.36%. The company had revenue of $4.57 billion during the quarter, compared to analyst estimates of $4.46 billion. During the same quarter in the previous year, the business earned $0.67 EPS. The firm's revenue was up 12.3% on a year-over-year basis. Dollar Tree has set its FY 2025 guidance at 5.320-5.720 EPS. As a group, sell-side analysts expect that Dollar Tree will post 5.39 EPS for the current year.

Dollar Tree declared that its Board of Directors has approved a share repurchase plan on Wednesday, July 9th that allows the company to buyback $2.50 billion in outstanding shares. This buyback authorization allows the company to purchase up to 11.5% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

Insider Activity

In other news, CMO Richard L. Mcneely sold 21,026 shares of the firm's stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $94.62, for a total value of $1,989,480.12. Following the transaction, the chief marketing officer owned 50,419 shares in the company, valued at approximately $4,770,645.78. This trade represents a 29.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 6.60% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in DLTR. Price T Rowe Associates Inc. MD grew its holdings in shares of Dollar Tree by 69.6% in the first quarter. Price T Rowe Associates Inc. MD now owns 5,848,196 shares of the company's stock worth $439,025,000 after purchasing an additional 2,400,586 shares during the last quarter. Alliancebernstein L.P. grew its holdings in shares of 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 purchasing an additional 2,393,172 shares during the last quarter. Alyeska Investment Group L.P. grew its holdings in shares of Dollar Tree by 1,055.1% in the first quarter. Alyeska Investment Group L.P. now owns 2,322,189 shares of the company's stock worth $174,327,000 after purchasing an additional 2,121,149 shares during the last quarter. Norges Bank purchased a new stake in Dollar Tree in the second quarter worth $185,784,000. Finally, EdgePoint Investment Group Inc. boosted its holdings in Dollar Tree by 21.4% in the first quarter. EdgePoint Investment Group Inc. now owns 9,641,507 shares of the company's stock valued at $723,788,000 after acquiring an additional 1,701,344 shares in the last quarter. Institutional investors own 97.40% of the company's stock.

Dollar Tree Company Profile

Dollar Tree, Inc operates retail discount stores. The company operates in two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $ 1.25. It provides consumable merchandise, which includes everyday consumables, such as household paper and chemicals, food, candy, health, personal care products, and frozen and refrigerated food; variety merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, arts and crafts supplies, and other items; and seasonal goods that include Christmas, Easter, Halloween, and Valentine's Day merchandise.

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