Dollar Tree (NASDAQ:DLTR) Upgraded by Telsey Advisory Group to Outperform Rating

Key Points

• Telsey Advisory Group upgraded Dollar Tree's stock from a "market perform" rating to "outperform" with a target price increase from $100.00 to $130.00, indicating a potential upside of 15.56% from its current price.
• The company's recent earnings report showed an EPS of $1.26, exceeding analysts' expectations, with revenue of $4.64 billion for the quarter, reflecting an 11.3% year-over-year increase.
• Dollar Tree's board has approved a $2.5 billion share buyback program, allowing the company to repurchase up to 11.5% of its stock, which is generally seen as a signal that the company believes its shares are undervalued.

Dollar Tree (NASDAQ:DLTR - Get Free Report) was upgraded by Telsey Advisory Group from a "market perform" rating to an "outperform" rating in a research note issued on Friday, MarketBeat Ratings reports. The firm presently has a $130.00 target price on the stock, up from their prior target price of $100.00. Telsey Advisory Group's target price would indicate a potential upside of 15.56% from the stock's current price.

A number of other analysts have also issued reports on DLTR. Morgan Stanley lifted their target price on Dollar Tree from $80.00 to $96.00 and gave the stock an "equal weight" rating in a research report on Thursday, June 5th. Truist Financial lifted their target price on Dollar Tree from $109.00 to $127.00 and gave the stock a "buy" rating in a research report on Wednesday, August 13th. BMO Capital Markets lifted their target price on Dollar Tree from $80.00 to $85.00 and gave the stock a "market perform" rating in a research report on Thursday, June 5th. Barclays raised Dollar Tree from an "equal weight" rating to an "overweight" rating and lifted their target price for the stock from $95.00 to $138.00 in a research report on Monday, July 21st. Finally, Wells Fargo & Company lifted their price target on Dollar Tree from $105.00 to $130.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 22nd. Eight investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $104.53.

Dollar Tree Stock Down 0.3%

Shares of NASDAQ DLTR opened at $112.50 on Friday. Dollar Tree has a 1 year low of $60.49 and a 1 year high of $118.06. The firm has a market cap of $23.48 billion, a price-to-earnings ratio of -8.12, a PEG ratio of 2.40 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's 50-day simple moving average is $109.66 and its 200-day simple moving average is $89.70.

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 analysts' consensus estimates of $1.21 by $0.05. Dollar Tree had a positive return on equity of 19.36% and a negative net margin of 12.15%.The business had revenue of $4.64 billion for the quarter, compared to analyst estimates of $4.52 billion. During the same period in the previous year, the company earned $1.43 earnings per share. The company's revenue for the quarter was up 11.3% compared to the same quarter last year. Dollar Tree has set its FY 2025 guidance at 5.150-5.650 EPS. As a group, equities analysts anticipate that Dollar Tree will post 5.39 earnings per share for the current fiscal year.

Dollar Tree declared that its board has approved a share buyback program on Wednesday, July 9th that permits the company to repurchase $2.50 billion in shares. This repurchase authorization permits the company to repurchase up to 11.5% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other Dollar Tree news, CMO Richard L. Mcneely sold 21,026 shares of Dollar Tree 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 transaction, the chief marketing officer directly owned 50,419 shares in the company, valued at $4,770,645.78. The trade was a 29.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 6.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Dollar Tree

A number of hedge funds and other institutional investors have recently bought and sold shares of DLTR. Balyasny Asset Management L.P. boosted its stake in Dollar Tree by 2,489.9% in the fourth quarter. Balyasny Asset Management L.P. now owns 2,621,456 shares of the company's stock valued at $196,452,000 after acquiring an additional 2,520,237 shares during the period. Price T Rowe Associates Inc. MD boosted its stake in Dollar Tree by 69.6% in the first quarter. Price T Rowe Associates Inc. MD now owns 5,848,196 shares of the company's stock valued at $439,025,000 after acquiring an additional 2,400,586 shares during the period. Alliancebernstein L.P. boosted its stake in Dollar Tree by 176.9% in the second quarter. Alliancebernstein L.P. now owns 3,746,222 shares of the company's stock valued at $371,026,000 after acquiring an additional 2,393,172 shares during the period. Alyeska Investment Group L.P. boosted its stake in Dollar Tree by 1,055.1% in the first quarter. Alyeska Investment Group L.P. now owns 2,322,189 shares of the company's stock valued at $174,327,000 after acquiring an additional 2,121,149 shares during the period. Finally, Norges Bank acquired a new position in Dollar Tree in the second quarter valued at approximately $185,784,000. 97.40% of the stock is currently owned by institutional investors and hedge funds.

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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