Dollar Tree (NASDAQ:DLTR) Issues Quarterly Earnings Results

Key Points

• Dollar Tree reported earnings of $0.77 per share for the quarter, significantly surpassing analysts' expectations of $0.38, and generated $4.57 billion in revenue, exceeding the forecasted $4.46 billion.
• The company recently announced a $2.5 billion stock repurchase plan, indicating management's belief that the stock is undervalued.
• Several analysts have upgraded their ratings on Dollar Tree, with price targets reaching as high as $140.00, suggesting a positive outlook for the stock.

Dollar Tree (NASDAQ:DLTR - Get Free Report) released its quarterly earnings results on Wednesday. The company reported $0.77 earnings per share for the quarter, beating analysts' consensus estimates of $0.38 by $0.39, Zacks reports. The business had revenue of $4.57 billion for the quarter, compared to analysts' expectations of $4.46 billion. Dollar Tree had a negative net margin of 12.15% and a positive return on equity of 19.36%. During the same period last year, the business earned $0.67 EPS.

Dollar Tree Stock Up 2.0%

Dollar Tree stock opened at $111.35 on Wednesday. Dollar Tree has a 1-year low of $60.49 and a 1-year high of $118.06. The stock has a market cap of $23.24 billion, a PE ratio of -8.03, a P/E/G ratio of 2.32 and a beta of 0.89. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.04 and a quick ratio of 0.72. The stock's fifty day moving average is $110.30 and its two-hundred day moving average is $90.61.

Insider Buying and Selling

In related news, CMO Richard L. Mcneely sold 21,026 shares of the company's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $94.62, for a total value of $1,989,480.12. Following the completion of the sale, the chief marketing officer directly owned 50,419 shares of the company's stock, valued at $4,770,645.78. This represents a 29.43% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 6.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. MUFG Securities EMEA plc purchased a new stake in shares of Dollar Tree in the second quarter valued at $58,000. EverSource Wealth Advisors LLC increased its holdings in Dollar Tree by 367.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,674 shares of the company's stock valued at $166,000 after purchasing an additional 1,316 shares in the last quarter. CW Advisors LLC purchased a new stake in shares of Dollar Tree during the 2nd quarter valued at about $264,000. EP Wealth Advisors LLC acquired a new stake in Dollar Tree in the second quarter valued at approximately $294,000. Finally, Evergreen Capital Management LLC grew its holdings in Dollar Tree by 12.5% during the 2nd quarter. Evergreen Capital Management LLC now owns 3,664 shares of the company's stock valued at $363,000 after purchasing an additional 406 shares in the last quarter. 97.40% of the stock is owned by hedge funds and other institutional investors.

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

Wall Street Analyst Weigh In

DLTR has been the topic of several research analyst reports. JPMorgan Chase & Co. boosted their price target on Dollar Tree from $111.00 to $138.00 and gave the company an "overweight" rating in a research note on Monday, July 21st. Barclays upgraded shares of Dollar Tree from an "equal weight" rating to an "overweight" rating and upped their price objective for the stock from $95.00 to $138.00 in a research report on Monday, July 21st. UBS Group reiterated a "buy" rating and set a $140.00 target price on shares of Dollar Tree in a research report on Tuesday, August 26th. Truist Financial increased their target price on Dollar Tree from $109.00 to $127.00 and gave the company a "buy" rating in a report on Wednesday, August 13th. Finally, Guggenheim reaffirmed a "buy" rating and set a $100.00 target price on shares of Dollar Tree in a report on Thursday, June 5th. Eight analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, Dollar Tree has an average rating of "Hold" and an average price target of $104.53.

About Dollar Tree

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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