Dollar Tree (NASDAQ:DLTR) Stock Price Down 6.4% - Here's Why

Key Points

• Dollar Tree shares were down 6.4% in mid-day trading, falling to about $97 from a prior close of $103.75, with roughly 3.08 million shares changing hands (slightly below average volume).
• Analysts are split: the consensus rating is Hold with an average price target of $122.76, while individual targets range widely from $89 (Bank of America) to $150 (Evercore), reflecting mixed sentiment.
• In the latest quarter Dollar Tree posted EPS of $2.56 (beat by $0.03) and revenue of $5.45 billion (up 9% year-over-year), and the company trades with a P/E of 15.68, a market cap of $19.34 billion and about 97.4% institutional ownership.

Dollar Tree, Inc. (NASDAQ:DLTR - Get Free Report) was down 6.4% during mid-day trading on Monday . The company traded as low as $96.57 and last traded at $97.0730. Approximately 3,077,998 shares traded hands during trading, a decline of 2% from the average daily volume of 3,154,314 shares. The stock had previously closed at $103.75.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on DLTR shares. Citigroup decreased their price objective on Dollar Tree from $132.00 to $125.00 and set a "neutral" rating on the stock in a report on Tuesday, March 17th. Piper Sandler restated a "neutral" rating and issued a $116.00 target price (up from $114.00) on shares of Dollar Tree in a research report on Tuesday, March 17th. Barclays reissued an "overweight" rating on shares of Dollar Tree in a research report on Monday, March 16th. Evercore set a $150.00 target price on shares of Dollar Tree in a research report on Tuesday, April 21st. Finally, Bank of America increased their target price on shares of Dollar Tree from $85.00 to $89.00 and gave the stock an "underperform" rating in a research note on Monday, March 16th. Eight analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and six have given a Sell rating to the company. According to MarketBeat, Dollar Tree presently has an average rating of "Hold" and a consensus price target of $122.76.

Dollar Tree Price Performance

The company has a debt-to-equity ratio of 0.65, a current ratio of 1.07 and a quick ratio of 0.29. The firm has a market capitalization of $19.34 billion, a price-to-earnings ratio of 15.68, a PEG ratio of 1.30 and a beta of 0.74. The stock has a 50 day moving average price of $112.52 and a two-hundred day moving average price of $114.64.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its earnings results on Monday, March 16th. The company reported $2.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.53 by $0.03. The firm had revenue of $5.45 billion for the quarter, compared to analyst estimates of $5.46 billion. Dollar Tree had a return on equity of 32.24% and a net margin of 6.61%.Dollar Tree's revenue was up 9.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.11 EPS. As a group, analysts expect that Dollar Tree, Inc. will post 6.75 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in DLTR. Optas LLC acquired a new stake in Dollar Tree during the 1st quarter worth approximately $307,000. Y Intercept Hong Kong Ltd grew its stake in shares of Dollar Tree by 289.6% in the first quarter. Y Intercept Hong Kong Ltd now owns 12,176 shares of the company's stock worth $1,333,000 after acquiring an additional 9,051 shares in the last quarter. Leonteq Securities AG increased its position in shares of Dollar Tree by 77.0% during the first quarter. Leonteq Securities AG now owns 540 shares of the company's stock worth $59,000 after acquiring an additional 235 shares during the period. Fjarde AP Fonden Fourth Swedish National Pension Fund boosted its holdings in Dollar Tree by 105.2% in the first quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 58,037 shares of the company's stock valued at $6,356,000 after purchasing an additional 29,750 shares during the period. Finally, Elevation Point Wealth Partners LLC acquired a new position in Dollar Tree during the 1st quarter worth $615,000. Hedge funds and other institutional investors own 97.40% of the company's stock.

About Dollar Tree

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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