Dollar Tree (NASDAQ:DLTR) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Dollar Tree (NASDAQ:DLTR) from a "hold" to a "buy," but analyst coverage remains mixed — the MarketBeat consensus is still a "Hold" with a $123.24 target price (8 Buys, 10 Holds, 7 Sells).
• Quarterly results showed strength: DLTR reported $2.56 EPS (beat by $0.03) and revenue of $5.45B (up 9% year-over-year), while institutional investors have been adding shares heavily (97.4% institutional ownership and sizable hedge fund accumulation).

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

DLTR has been the subject of several other reports. Jefferies Financial Group increased their target price on Dollar Tree from $75.00 to $80.00 and gave the company an "underperform" rating in a report on Tuesday. Rothschild & Co Redburn set a $165.00 price target on Dollar Tree and gave the stock a "buy" rating in a research note on Tuesday, February 17th. Barclays reiterated an "overweight" rating on shares of Dollar Tree in a research report on Monday. BTIG Research restated a "neutral" rating on shares of Dollar Tree in a report on Monday, March 9th. Finally, Wells Fargo & Company lifted their target price on shares of Dollar Tree from $125.00 to $145.00 and gave the stock an "overweight" rating in a research note on Friday, December 19th. Eight analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and seven have assigned a Sell rating to the stock. Based on data from MarketBeat, Dollar Tree currently has a consensus rating of "Hold" and a consensus target price of $123.24.

Dollar Tree Stock Performance

NASDAQ:DLTR opened at $105.92 on Friday. The company has a market capitalization of $20.90 billion, a price-to-earnings ratio of 16.95, a PEG ratio of 1.32 and a beta of 0.73. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.07 and a quick ratio of 0.22. Dollar Tree has a 1-year low of $61.87 and a 1-year high of $142.40. The business has a 50 day moving average of $123.67 and a 200 day moving average of $112.73.

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, beating 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 company had revenue of $5.45 billion during the quarter, compared to analysts' expectations of $5.46 billion. During the same quarter in the prior year, the company earned $2.11 EPS. The firm's revenue was up 9.0% on a year-over-year basis. On average, sell-side analysts predict that Dollar Tree will post 5.39 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Dollar Tree

A number of hedge funds have recently bought and sold shares of DLTR. Alliancebernstein L.P. grew its holdings in shares of Dollar Tree by 176.9% during the second quarter. Alliancebernstein L.P. now owns 3,746,222 shares of the company's stock valued at $371,026,000 after buying an additional 2,393,172 shares during the last quarter. Norges Bank bought a new stake in shares of Dollar Tree in the fourth quarter worth $260,858,000. Jupiter Asset Management Ltd. bought a new stake in shares of Dollar Tree during the 3rd quarter valued at about $118,811,000. Voya Investment Management LLC grew its stake in shares of Dollar Tree by 103.1% during the 3rd quarter. Voya Investment Management LLC now owns 2,406,748 shares of the company's stock valued at $226,729,000 after purchasing an additional 1,222,028 shares during the period. Finally, EdgePoint Investment Group Inc. increased its position in shares of Dollar Tree by 12.3% during the 2nd quarter. EdgePoint Investment Group Inc. now owns 10,825,801 shares of the company's stock valued at $1,072,187,000 after purchasing an additional 1,184,294 shares during the last quarter. Institutional investors own 97.40% of the company's stock.

Key Headlines Impacting Dollar Tree

Here are the key news stories impacting Dollar Tree this week:

• Positive Sentiment: Strong fundamentals: analysts and commentary point to revenue gains from pricing and a shifting customer mix after the quarter, supporting near-term sales momentum. Dollar Tree's Pricing Adjustments Are Generating Revenue Growth
• Positive Sentiment: Buy-side support: Guggenheim reaffirmed a Buy rating and Telsey Advisory gave an Outperform — these help underpin demand for the shares. Guggenheim Reaffirms "Buy" Rating for Dollar Tree NASDAQ: DLTR Dollar Tree NASDAQ: DLTR Earns "Outperform" Rating from Telsey Advisory Group
• Positive Sentiment: Conviction from select brokers: Jefferies forecasted strong upside, and Wells Fargo maintained a Buy — both can support further upside if results and execution continue. Jefferies Financial Group Forecasts Strong Price Appreciation for Dollar Tree NASDAQ: DLTR Stock Wells Fargo Sticks to Its Buy Rating for Dollar Tree (DLTR)
• Positive Sentiment: Positive commentary & investor guides highlight Dollar Tree as a buy candidate after the quarter and favorable pricing trends. Why You Might Consider an Investment in Dollar Tree Today
• Neutral Sentiment: Management messaging: CEO comments aimed to reassure customers on pricing — supportive for consumer confidence but not a near-term earnings catalyst by itself. Dollar Tree CEO shares reassuring update on prices
• Neutral Sentiment: Mixed industry analysis and weekly market context suggest broader retail volatility (inflation/Fed/risk environment) could affect sentiment toward discount retailers. How the Risk/Reward Calculation Is Changing for Discount Retail (DLTR) MarketBeat Week in Review – 03/16 - 03/20
• Neutral Sentiment: Short-interest report is noisy/ambiguous (data shows zero change and 0 days to cover) — not signaling a clear market pressure or squeeze risk today.
• Negative Sentiment: Relative weakness: a MarketWatch note flagged DLTR underperforming peers on Thursday, which can pressure sentiment if it persists. Dollar Tree Inc. stock underperforms Thursday when compared to competitors
• Negative Sentiment: Bearish broker notes: Citigroup and Morgan Stanley put out pessimistic forecasts — these can cap upside and increase volatility if other brokers follow suit. Citigroup Issues Pessimistic Forecast for Dollar Tree NASDAQ: DLTR Stock Price Morgan Stanley Issues Pessimistic Forecast for Dollar Tree NASDAQ: DLTR Stock Price

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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