Dollar Tree (NASDAQ:DLTR) Lowered to "Reduce" Rating by Gordon Haskett

Key Points

• Dollar Tree has been downgraded from a "hold" rating to a "reduce" rating by Gordon Haskett, now with a price target of $95.00, indicating a potential downside of 6.29% from its previous close.
• The company's recent quarterly earnings report showed an EPS of $0.77, exceeding estimates, along with a 12.3% year-over-year revenue increase, totaling $4.57 billion.
• Dollar Tree has initiated a stock buyback program allowing the repurchase of $2.50 billion in shares, reflecting management's belief that its stock is undervalued.

Dollar Tree (NASDAQ:DLTR - Get Free Report) was downgraded by research analysts at Gordon Haskett from a "hold" rating to a "reduce" rating in a research note issued on Wednesday,Briefing.com Automated Import reports. They presently have a $95.00 price objective on the stock. Gordon Haskett's price objective would suggest a potential downside of 6.29% from the stock's previous close.

Several other equities research analysts have also recently issued reports 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 report on Thursday, June 5th. Guggenheim reiterated a "buy" rating and issued a $100.00 price target on shares of Dollar Tree in a research note on Thursday, June 5th. JPMorgan Chase & Co. increased their price objective on shares of Dollar Tree from $111.00 to $138.00 and gave the company an "overweight" rating in a report on Monday, July 21st. Piper Sandler raised their price objective on Dollar Tree from $93.00 to $112.00 and gave the company a "neutral" rating in a research report on Tuesday, August 19th. Finally, Jefferies Financial Group started coverage on Dollar Tree in a research report on Thursday, July 17th. They issued a "hold" rating and a $106.00 target price on the stock. 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's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $104.05.

Dollar Tree Stock Performance

Shares of NASDAQ DLTR traded down $9.97 during midday trading on Wednesday, hitting $101.38. 12,256,504 shares of the stock traded hands, compared to its average volume of 4,128,300. The firm has a market capitalization of $21.16 billion, a P/E ratio of -7.29, a PEG ratio of 2.32 and a beta of 0.89. Dollar Tree has a one year low of $60.49 and a one year high of $118.06. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.72 and a current ratio of 1.04. The firm has a 50-day moving average of $110.30 and a two-hundred day moving average of $90.61.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last released its quarterly earnings results on Wednesday, September 3rd. The company reported $0.77 earnings per share for the quarter, topping 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 business had revenue of $4.57 billion for the quarter, compared to the consensus estimate of $4.46 billion. During the same period last year, the firm earned $0.67 earnings per share. The company'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. On average, equities analysts forecast that Dollar Tree will post 5.39 EPS for the current fiscal year.

Dollar Tree announced that its board has initiated a stock buyback program on Wednesday, July 9th that permits the company to repurchase $2.50 billion in shares. This repurchase authorization permits the company to buy up to 11.5% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In other news, CMO Richard L. Mcneely sold 21,026 shares of the stock in a transaction that occurred on 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 sale, the chief marketing officer directly owned 50,419 shares in the company, valued at approximately $4,770,645.78. This represents a 29.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 6.60% of the stock is owned by company insiders.

Institutional Trading of Dollar Tree

A number of large investors have recently modified their holdings of DLTR. Orion Porfolio Solutions LLC boosted its holdings in shares of Dollar Tree by 28.2% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 47,735 shares of the company's stock valued at $4,728,000 after buying an additional 10,497 shares in the last quarter. Advisory Services Network LLC increased its position in shares of Dollar Tree by 57.5% during the second quarter. Advisory Services Network LLC now owns 22,963 shares of the company's stock worth $2,274,000 after purchasing an additional 8,382 shares in the last quarter. Pitcairn Co. purchased a new stake in shares of Dollar Tree during the 2nd quarter valued at $556,000. Caxton Associates LLP acquired a new stake in shares of Dollar Tree in the 2nd quarter worth $2,492,000. Finally, Semper Augustus Investments Group LLC boosted its position in shares of Dollar Tree by 2.6% in the 2nd quarter. Semper Augustus Investments Group LLC now owns 506,396 shares of the company's stock worth $50,153,000 after purchasing an additional 13,010 shares in the last quarter. Hedge funds and other institutional investors own 97.40% of the company's stock.

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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