Dollar Tree (NASDAQ:DLTR) Stock Rating Upgraded by The Goldman Sachs Group

Key Points

• Goldman Sachs upgraded Dollar Tree from “neutral” to “hold” and raised its price target to $125 from $105, implying only modest upside from the prior close.
• Other analysts remain mixed on DLTR, though several recently lifted ratings or price targets; overall, the stock still carries a Hold consensus with an average price target of $122.68.
• Dollar Tree also announced a $2.5 billion share repurchase program, which would allow it to buy back up to 10.7% of its shares and may signal management believes the stock is undervalued.

Dollar Tree (NASDAQ:DLTR - Get Free Report) was upgraded by analysts at The Goldman Sachs Group from a "neutral" rating to a "hold" rating in a report issued on Wednesday, Marketbeat Ratings reports. The firm currently has a $125.00 price objective on the stock, up from their prior price objective of $105.00. The Goldman Sachs Group's target price suggests a potential upside of 1.84% from the company's previous close.

A number of other research firms have also recently commented on DLTR. Jefferies Financial Group upgraded shares of Dollar Tree from a "moderate sell" rating to a "buy" rating in a research note on Wednesday. BMO Capital Markets reaffirmed an "underperform" rating on shares of Dollar Tree in a report on Tuesday, March 17th. Guggenheim lifted their price objective on shares of Dollar Tree from $130.00 to $135.00 and gave the stock a "buy" rating in a research note on Friday, May 29th. Sanford C. Bernstein boosted their price objective on shares of Dollar Tree from $115.00 to $124.00 and gave the company a "market perform" rating in a report on Friday, May 29th. Finally, Evercore raised Dollar Tree from a "hold" rating to an "outperform" rating in a research report on Wednesday. Ten investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $122.68.

Dollar Tree Stock Down 0.7%

Shares of Dollar Tree stock traded down $0.87 during trading on Wednesday, reaching $122.74. The company's stock had a trading volume of 184,395 shares, compared to its average volume of 3,488,107. Dollar Tree has a 1-year low of $84.71 and a 1-year high of $142.40. The company has a 50-day simple moving average of $106.61 and a two-hundred day simple moving average of $114.49. The company has a quick ratio of 0.39, a current ratio of 1.16 and a debt-to-equity ratio of 0.84. The company has a market cap of $23.59 billion, a price-to-earnings ratio of 19.18, a P/E/G ratio of 1.40 and a beta of 0.65.

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

Dollar Tree declared that its Board of Directors has initiated a share repurchase plan on Thursday, July 2nd that allows the company to buyback $2.50 billion in outstanding shares. This buyback authorization allows the company to buy up to 10.7% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Dollar Tree

A number of large investors have recently added to or reduced their stakes in DLTR. Cullen Frost Bankers Inc. purchased a new position in Dollar Tree during the fourth quarter worth approximately $25,000. Reflection Asset Management acquired a new stake in Dollar Tree during the fourth quarter worth about $25,000. Covestor Ltd raised its stake in Dollar Tree by 60.9% during the fourth quarter. Covestor Ltd now owns 222 shares of the company's stock worth $27,000 after purchasing an additional 84 shares during the period. Basecamp Wealth Advisors LLC boosted its holdings in Dollar Tree by 59.9% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 259 shares of the company's stock valued at $28,000 after purchasing an additional 97 shares during the last quarter. Finally, Wilkerson Advisory Group LLC grew its stake in shares of Dollar Tree by 80.1% in the 1st 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 period. 97.40% of the stock is currently owned by institutional investors and hedge funds.

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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