Dollar Tree (NASDAQ:DLTR) Price Target Raised to $108.00

Key Points

• Dollar Tree's price target has been raised by Evercore ISI from $104 to $108, indicating a potential downside of 5.50% from its previous close.
• The company recently reported earnings of $1.26 per share, exceeding expectations, with quarterly revenue up 11.3% year-over-year.
• Dollar Tree's Board of Directors authorized a $2.5 billion stock buyback program, which reflects their belief that shares are currently undervalued.

Dollar Tree (NASDAQ:DLTR - Get Free Report) had its price objective lifted by investment analysts at Evercore ISI from $104.00 to $108.00 in a research report issued on Tuesday,Benzinga reports. The brokerage presently has an "in-line" rating on the stock. Evercore ISI's price objective indicates a potential downside of 5.50% from the stock's previous close.

DLTR has been the topic of several other research reports. Piper Sandler increased their price target on shares of Dollar Tree from $72.00 to $93.00 and gave the stock a "neutral" rating in a research report on Thursday, June 5th. BMO Capital Markets upped their target price 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. Wells Fargo & Company upped their target price on shares of Dollar Tree from $105.00 to $130.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 22nd. Jefferies Financial Group assumed coverage on shares of Dollar Tree in a research note on Thursday, July 17th. They set a "hold" rating and a $106.00 target price on the stock. Finally, Sanford C. Bernstein set a $82.00 target price on shares of Dollar Tree and gave the stock a "market perform" rating in a research note on Monday, May 5th. Two investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and seven have issued a buy rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $98.47.

Dollar Tree Trading Down 1.6%

NASDAQ DLTR opened at $114.29 on Tuesday. The firm's 50-day moving average is $105.08 and its two-hundred day moving average is $86.35. Dollar Tree has a 12 month low of $60.49 and a 12 month high of $118.06. 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 has a market capitalization of $23.85 billion, a P/E ratio of -8.25, a PEG ratio of 2.49 and a beta of 0.88.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last issued its quarterly earnings results on Wednesday, June 4th. The company reported $1.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.21 by $0.05. The business had revenue of $4.64 billion for the quarter, compared to analysts' expectations of $4.52 billion. Dollar Tree had a negative net margin of 12.15% and a positive return on equity of 19.36%. The business's quarterly revenue was up 11.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.43 earnings per share. On average, sell-side analysts anticipate that Dollar Tree will post 5.39 earnings per share for the current year.

Dollar Tree announced that its Board of Directors has authorized a stock buyback program on Wednesday, July 9th that authorizes the company to buyback $2.50 billion in shares. This buyback authorization authorizes the company to repurchase up to 11.5% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at Dollar Tree

In related news, CMO Richard L. Mcneely sold 21,026 shares of the stock in a transaction on Friday, June 6th. The stock was sold at an average price of $94.62, for a total transaction 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 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 available through this link. 6.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Dollar Tree

Several hedge funds have recently modified their holdings of DLTR. Vanguard Group Inc. lifted its holdings in Dollar Tree by 1.7% in the first quarter. Vanguard Group Inc. now owns 23,839,718 shares of the company's stock valued at $1,789,648,000 after acquiring an additional 389,490 shares during the period. T. Rowe Price Investment Management Inc. lifted its holdings in Dollar Tree by 0.7% in the first quarter. T. Rowe Price Investment Management Inc. now owns 9,994,978 shares of the company's stock valued at $750,323,000 after acquiring an additional 74,230 shares during the period. EdgePoint Investment Group Inc. lifted 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 during the period. Capital International Investors increased its position in shares of Dollar Tree by 30.1% in the fourth quarter. Capital International Investors now owns 8,753,693 shares of the company's stock valued at $656,000,000 after buying an additional 2,023,819 shares in the last quarter. Finally, Kovitz Investment Group Partners LLC increased its position in shares of Dollar Tree by 382.7% in the fourth quarter. Kovitz Investment Group Partners LLC now owns 6,524,870 shares of the company's stock valued at $488,974,000 after buying an additional 5,173,238 shares in the last quarter. 97.40% of the stock is 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.

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