Dollar Tree (NASDAQ:DLTR) Now Covered by Analysts at Wolfe Research

Key Points

• Wolfe Research has initiated coverage on Dollar Tree (NASDAQ:DLTR), assigning a "peer perform" rating, while various firms have set target prices ranging from $70 to $140.
• The company recently reported earnings, exceeding estimates with an EPS of $0.77 and revenue of $4.57 billion, marking a 12.3% year-over-year growth.
• Dollar Tree's board has authorized a $2.50 billion share buyback plan, indicating the leadership's belief that the stock is undervalued.

Equities researchers at Wolfe Research initiated coverage on shares of Dollar Tree (NASDAQ:DLTR - Get Free Report) in a report released on Thursday,Benzinga reports. The firm set a "peer perform" rating on the stock.

DLTR has been the topic of a number of other reports. Guggenheim cut their target price on shares of Dollar Tree from $130.00 to $125.00 and set a "buy" rating on the stock in a research report on Monday, September 8th. Cfra Research upgraded shares of Dollar Tree to a "hold" rating in a research report on Wednesday, May 28th. Bank of America upped their target price on shares of Dollar Tree from $70.00 to $75.00 and gave the company an "underperform" rating in a research report on Thursday, September 4th. JPMorgan Chase & Co. upped their target price on shares of Dollar Tree from $138.00 to $140.00 and gave the company an "overweight" rating in a research report on Thursday, September 4th. Finally, Truist Financial upped their target price on shares of Dollar Tree from $127.00 to $129.00 and gave the company a "buy" rating in a research report on Wednesday, September 3rd. Eight research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $109.28.

Dollar Tree Stock Up 2.4%

DLTR opened at $97.78 on Thursday. The firm's 50-day simple moving average is $109.64 and its 200-day simple moving average is $92.34. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.27 and a current ratio of 1.04. Dollar Tree has a twelve month low of $60.49 and a twelve month high of $118.06. The firm has a market cap of $19.94 billion, a price-to-earnings ratio of -7.21, a PEG ratio of 1.74 and a beta of 0.89.

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

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

Insiders Place Their Bets

In related news, Director Stephanie Stahl sold 1,185 shares of the business's stock in a transaction on Friday, September 5th. The shares were sold at an average price of $100.32, for a total transaction of $118,879.20. Following the transaction, the director directly owned 4,089 shares in the company, valued at approximately $410,208.48. The trade was a 22.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 6.60% of the company's stock.

Hedge Funds Weigh In On Dollar Tree

A number of institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in Dollar Tree by 1.7% during the first quarter. Vanguard Group Inc. now owns 23,839,718 shares of the company's stock worth $1,789,648,000 after buying an additional 389,490 shares during the last quarter. EdgePoint Investment Group Inc. increased its holdings in Dollar Tree by 12.3% during the second quarter. EdgePoint Investment Group Inc. now owns 10,825,801 shares of the company's stock worth $1,072,187,000 after buying an additional 1,184,294 shares during the last quarter. T. Rowe Price Investment Management Inc. increased its holdings in Dollar Tree by 0.7% during the first quarter. T. Rowe Price Investment Management Inc. now owns 9,994,978 shares of the company's stock worth $750,323,000 after buying an additional 74,230 shares during the last quarter. Price T Rowe Associates Inc. MD increased its holdings in Dollar Tree by 69.6% during 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 buying an additional 2,400,586 shares during the last quarter. Finally, Primecap Management Co. CA increased its holdings in Dollar Tree by 0.3% during the second quarter. Primecap Management Co. CA now owns 3,925,510 shares of the company's stock worth $388,783,000 after buying an additional 12,675 shares during the last quarter. 97.40% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.