Dollar Tree (NASDAQ:DLTR) Stock Price Expected to Rise, Evercore ISI Analyst Says

Key Points

• Evercore ISI raised its price target for Dollar Tree from $108 to $110, indicating a potential downside of 2.25% from the current price.
• Dollar Tree's Board approved a stock repurchase program worth $2.5 billion, indicating company leadership believes its stock is undervalued.
• In its latest earnings report, Dollar Tree topped estimates with a revenue of $4.64 billion and earnings per share of $1.26, signaling a strong financial performance despite a negative net margin.

Dollar Tree (NASDAQ:DLTR - Get Free Report) had its price objective increased by research analysts at Evercore ISI from $108.00 to $110.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm presently has an "in-line" rating on the stock. Evercore ISI's target price would indicate a potential downside of 2.25% from the company's previous close.

Other research analysts have also issued reports about the company. UBS Group lifted their price objective on Dollar Tree from $95.00 to $108.00 and gave the stock a "buy" rating in a research report on Thursday, May 29th. Wells Fargo & Company lifted their price objective on Dollar Tree from $105.00 to $130.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 22nd. Cfra Research raised Dollar Tree to a "hold" rating in a research report on Wednesday, May 28th. JPMorgan Chase & Co. lifted their price objective on Dollar Tree from $111.00 to $138.00 and gave the stock an "overweight" rating in a research report on Monday, July 21st. Finally, Guggenheim restated a "buy" rating and issued a $100.00 target price on shares of Dollar Tree in a research note on Thursday, June 5th. Seven equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Dollar Tree presently has a consensus rating of "Hold" and a consensus target price of $101.00.

Dollar Tree Stock Up 0.7%

Shares of DLTR opened at $112.5350 on Tuesday. Dollar Tree has a 52 week low of $60.49 and a 52 week high of $118.06. The stock has a market capitalization of $23.49 billion, a price-to-earnings ratio of -8.08, a PEG ratio of 2.42 and a beta of 0.88. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.72 and a current ratio of 1.04. The stock has a fifty day moving average of $108.78 and a 200-day moving average of $89.11.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last announced its 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 during the quarter, compared to analyst estimates of $4.52 billion. Dollar Tree had a positive return on equity of 19.36% and a negative net margin of 12.15%.Dollar Tree's revenue for the quarter was up 11.3% compared to the same quarter last year. During the same period last year, the company earned $1.43 EPS. Dollar Tree has set its FY 2025 guidance at 5.150-5.650 EPS. As a group, sell-side analysts anticipate that Dollar Tree will post 5.39 earnings per share for the current fiscal year.

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

Insider Activity at Dollar Tree

In other news, CMO Richard L. Mcneely sold 21,026 shares of the stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $94.62, for a total value 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 represents a 29.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 6.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Dollar Tree

A number of hedge funds and other institutional investors have recently modified their holdings of DLTR. Mariner LLC boosted its stake in shares of Dollar Tree by 22.8% in the 4th quarter. Mariner LLC now owns 10,574 shares of the company's stock worth $792,000 after buying an additional 1,960 shares during the last quarter. MGO One Seven LLC purchased a new position in shares of Dollar Tree in the 4th quarter worth approximately $299,000. Coldstream Capital Management Inc. purchased a new position in shares of Dollar Tree in the 4th quarter worth approximately $284,000. Northern Trust Corp lifted its stake in Dollar Tree by 2.1% in the fourth quarter. Northern Trust Corp now owns 1,992,742 shares of the company's stock valued at $149,336,000 after purchasing an additional 41,763 shares during the last quarter. Finally, Lido Advisors LLC lifted its stake in Dollar Tree by 67.3% in the fourth quarter. Lido Advisors LLC now owns 7,099 shares of the company's stock valued at $532,000 after purchasing an additional 2,856 shares during the last quarter. Hedge funds and other institutional investors own 97.40% of the company's stock.

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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