Dollar Tree (NASDAQ:DLTR) Raised to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Dollar Tree to “Buy” from “Hold,” though the broader analyst consensus remains “Hold,” with 10 Buy, 12 Hold, and four Sell ratings and an average price target of $123.41.
• Dollar Tree reported quarterly EPS of $1.74, beating the $1.53 consensus estimate, while revenue rose 7.2% year over year to $4.98 billion.
• The company authorized a $2.5 billion share-repurchase program, allowing it to buy back up to 10.7% of outstanding shares—an indication management believes the stock may be undervalued.

Dollar Tree (NASDAQ:DLTR - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Saturday.

Several other equities research analysts have also issued reports on DLTR. Freedom Capital lowered shares of Dollar Tree from a "strong-buy" rating to a "hold" rating in a research report on Thursday, May 28th. Guggenheim lifted their target price on shares of Dollar Tree from $130.00 to $135.00 and gave the company a "buy" rating in a report on Friday, May 29th. BNP Paribas Exane upped their price target on shares of Dollar Tree from $88.00 to $98.00 and gave the stock an "underperform" rating in a research report on Friday, May 29th. Jefferies Financial Group upgraded Dollar Tree from a "moderate sell" rating to a "buy" rating in a report on Wednesday, July 8th. Finally, Barclays cut Dollar Tree from an "overweight" rating to a "strong sell" rating in a research note on Wednesday, July 8th. Ten research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $123.41.

Dollar Tree Price Performance

NASDAQ:DLTR opened at $131.48 on Friday. Dollar Tree has a 12-month low of $84.71 and a 12-month high of $142.40. The firm has a market cap of $25.27 billion, a price-to-earnings ratio of 20.54, a price-to-earnings-growth ratio of 1.47 and a beta of 0.64. The company's 50-day moving average is $123.93 and its two-hundred day moving average is $114.37. The company has a current ratio of 1.16, a quick ratio of 0.39 and a debt-to-equity ratio of 0.84.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its quarterly earnings data on Thursday, May 28th. The company reported $1.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.53 by $0.21. Dollar Tree had a return on equity of 35.19% and a net margin of 6.51%.The business had revenue of $4.98 billion for the quarter, compared to analysts' expectations of $4.96 billion. During the same quarter last year, the firm earned $1.26 earnings per share. The business's revenue was up 7.2% on a year-over-year basis. Dollar Tree has set its Q2 2026 guidance at 1.000-1.150 EPS. Research analysts expect that Dollar Tree will post 7 EPS for the current year.

Dollar Tree announced that its Board of Directors has initiated a share repurchase program on Thursday, July 2nd that authorizes the company to repurchase $2.50 billion in shares. This repurchase authorization authorizes the company to buy up to 10.7% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's management believes its shares are undervalued.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Cullen Frost Bankers Inc. acquired a new stake in shares of Dollar Tree in the 4th quarter valued at about $25,000. Reflection Asset Management acquired a new position in Dollar Tree in the fourth quarter worth about $25,000. Covestor Ltd grew its stake in Dollar Tree by 60.9% in the fourth quarter. Covestor Ltd now owns 222 shares of the company's stock worth $27,000 after purchasing an additional 84 shares in the last quarter. Basecamp Wealth Advisors LLC increased its holdings in Dollar Tree by 59.9% in the first quarter. Basecamp Wealth Advisors LLC now owns 259 shares of the company's stock valued at $28,000 after buying an additional 97 shares during the last quarter. Finally, Wilkerson Advisory Group LLC increased its holdings in Dollar Tree by 80.1% in the first quarter. Wilkerson Advisory Group LLC now owns 263 shares of the company's stock valued at $29,000 after buying an additional 117 shares during the last quarter. 97.40% of the stock is currently owned by institutional investors.

Dollar Tree Company Profile

Dollar Tree, Inc is a North American discount retailer that operates a portfolio of value-oriented store banners, primarily Dollar Tree and Family Dollar. The company's stores offer a broad assortment of everyday items at low price points, including household essentials, food and snacks, health and beauty products, cleaning supplies, seasonal and party goods, home décor, and basic apparel. Dollar Tree's merchandising strategy emphasizes high-turnover branded and private-label merchandise tailored to budget-conscious consumers, with Family Dollar complementing the chain by offering a wider range of price points and assortment depth in smaller-format neighborhood locations.

Founded in 1986 and headquartered in Chesapeake, Virginia, Dollar Tree has grown through both organic store openings and acquisitions.

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