Dollar Tree (NASDAQ:DLTR) Given Outperform Rating at Telsey Advisory Group

Key Points

• Telsey Advisory Group reaffirmed an "outperform" rating for Dollar Tree with a target price of $130.00, indicating a potential upside of 27.41% from its current price.
• Dollar Tree reported Q2 earnings of $0.77 per share, exceeding estimates, with revenue of $4.57 billion, marking a 12.3% increase year-over-year.
• The company has initiated a $2.50 billion stock buyback plan to repurchase up to 11.5% of its stock, a move often signaling that the board believes shares are undervalued.

Telsey Advisory Group reaffirmed their outperform rating on shares of Dollar Tree (NASDAQ:DLTR - Free Report) in a research report released on Thursday morning,Benzinga reports. Telsey Advisory Group currently has a $130.00 target price on the stock. Telsey Advisory Group also issued estimates for Dollar Tree's FY2026 earnings at $5.66 EPS, Q1 2027 earnings at $1.54 EPS, Q2 2027 earnings at $0.89 EPS, Q2 2027 earnings at $0.82 EPS, Q3 2027 earnings at $1.48 EPS, Q4 2027 earnings at $2.71 EPS, Q4 2027 earnings at $2.84 EPS, FY2027 earnings at $6.50 EPS, FY2027 earnings at $6.62 EPS and FY2028 earnings at $7.55 EPS.

Several other analysts have also recently commented on the stock. The Goldman Sachs Group cut shares of Dollar Tree from a "strong-buy" rating to a "strong sell" rating in a research note on Thursday, June 5th. Wells Fargo & Company reiterated an "overweight" rating on shares of Dollar Tree in a research report on Wednesday, September 3rd. JPMorgan Chase & Co. upped their target price on shares of Dollar Tree from $111.00 to $138.00 and gave the stock an "overweight" rating in a research note on Monday, July 21st. UBS Group restated a "buy" rating and set a $140.00 target price on shares of Dollar Tree in a report on Tuesday, August 26th. Finally, BMO Capital Markets lifted their price target on shares of Dollar Tree from $80.00 to $85.00 and gave the stock a "market perform" rating in a research note on Thursday, June 5th. Eight research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $108.26.

Dollar Tree Price Performance

Shares of Dollar Tree stock traded down $3.41 during trading on Thursday, hitting $96.00. The stock had a trading volume of 4,370,522 shares, compared to its average volume of 4,203,165. Dollar Tree has a 12 month low of $60.49 and a 12 month high of $118.06. The business's 50-day moving average is $110.42 and its 200 day moving average is $91.46. The firm has a market cap of $19.58 billion, a price-to-earnings ratio of -7.06, a P/E/G ratio of 1.84 and a beta of 0.89. The company has a current ratio of 1.04, a quick ratio of 0.27 and a debt-to-equity ratio of 0.67.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its earnings results on Wednesday, September 3rd. The company reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.38 by $0.39. Dollar Tree had a positive return on equity of 23.52% and a negative net margin of 13.46%.The company had revenue of $4.57 billion for the quarter, compared to analysts' expectations of $4.46 billion. During the same period last year, the firm earned $0.67 earnings per share. Dollar Tree's quarterly 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 anticipate that Dollar Tree will post 5.39 earnings per share for the current year.

Dollar Tree declared that its Board of Directors has authorized a share buyback plan on Wednesday, July 9th that permits the company to buyback $2.50 billion in shares. This buyback authorization permits the company to reacquire up to 11.5% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of DLTR. Price T Rowe Associates Inc. MD lifted its holdings in Dollar Tree by 69.6% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 5,848,196 shares of the company's stock worth $439,025,000 after buying an additional 2,400,586 shares in the last quarter. Alliancebernstein L.P. raised its holdings in shares of Dollar Tree by 176.9% during 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 period. Alyeska Investment Group L.P. boosted its holdings in shares of Dollar Tree by 1,055.1% during 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 period. Norges Bank bought a new position in Dollar Tree during the second quarter worth $185,784,000. Finally, EdgePoint Investment Group Inc. boosted its stake in shares of Dollar Tree by 21.4% in the 1st quarter. EdgePoint Investment Group Inc. now owns 9,641,507 shares of the company's stock valued at $723,788,000 after purchasing an additional 1,701,344 shares in the last quarter. Institutional investors and hedge funds 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.