Dollar Tree (NASDAQ:DLTR) Rating Increased to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Dollar Tree from "hold" to "buy", though analyst coverage remains mixed (8 Buy / 9 Hold / 7 Sell) and the consensus rating is still "Hold" with a $123.24 price target.
• Dollar Tree beat EPS expectations for the quarter ($2.56 vs. $2.53) while slightly missing revenue ($5.45B vs. $5.46B); revenue was up 9% year-over-year with a 6.61% net margin and 32.24% ROE.
• Shares opened at $99.55 with a market cap of $19.64 billion and a P/E of 15.93 (1-year range $68.93–$142.40), and institutional investors own about 97.4% of the stock.

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

DLTR has been the topic of several other research reports. Piper Sandler reiterated a "neutral" rating and set a $116.00 price objective (up from $114.00) on shares of Dollar Tree in a research report on Tuesday, March 17th. Weiss Ratings restated a "sell (d-)" rating on shares of Dollar Tree in a report on Friday, March 27th. Evercore raised Dollar Tree to a "hold" rating in a research note on Tuesday, February 3rd. Sanford C. Bernstein lifted their price objective on shares of Dollar Tree from $123.00 to $124.00 and gave the stock a "market perform" rating in a research note on Tuesday, March 17th. Finally, BMO Capital Markets restated an "underperform" rating on shares of Dollar Tree in a report on Tuesday, March 17th. Eight investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and seven have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $123.24.

Dollar Tree Price Performance

Shares of NASDAQ:DLTR opened at $99.55 on Friday. The company has a market capitalization of $19.64 billion, a P/E ratio of 15.93, a P/E/G ratio of 1.28 and a beta of 0.74. Dollar Tree has a 1-year low of $68.93 and a 1-year high of $142.40. The firm's 50 day simple moving average is $116.48 and its two-hundred day simple moving average is $113.53. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.07 and a quick ratio of 0.29.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last announced its quarterly earnings data on Monday, March 16th. The company reported $2.56 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.53 by $0.03. Dollar Tree had a net margin of 6.61% and a return on equity of 32.24%. The firm had revenue of $5.45 billion during the quarter, compared to analysts' expectations of $5.46 billion. During the same period in the prior year, the company posted $2.11 earnings per share. The company's revenue for the quarter was up 9.0% compared to the same quarter last year. Research analysts expect that Dollar Tree will post 5.39 EPS for the current fiscal year.

Institutional Trading of Dollar Tree

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. EdgePoint Investment Group Inc. boosted its holdings in Dollar Tree by 2.9% during the 3rd quarter. EdgePoint Investment Group Inc. now owns 11,138,183 shares of the company's stock valued at $1,051,110,000 after acquiring an additional 312,382 shares during the period. State Street Corp lifted its holdings in Dollar Tree by 3.5% during the 3rd quarter. State Street Corp now owns 9,421,856 shares of the company's stock valued at $889,141,000 after buying an additional 319,938 shares in the last quarter. Primecap Management Co. CA grew its stake in Dollar Tree by 6.8% in the 3rd quarter. Primecap Management Co. CA now owns 4,194,049 shares of the company's stock worth $395,792,000 after acquiring an additional 268,539 shares in the last quarter. Alliancebernstein L.P. increased its position in shares of Dollar Tree by 4.8% during the third quarter. Alliancebernstein L.P. now owns 3,926,586 shares of the company's stock worth $370,552,000 after acquiring an additional 180,364 shares during the period. Finally, London Co. of Virginia raised its stake in shares of Dollar Tree by 51.0% during the second quarter. London Co. of Virginia now owns 2,840,104 shares of the company's stock valued at $281,284,000 after acquiring an additional 958,925 shares in the last quarter. 97.40% of the stock is owned by hedge funds and other 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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