Dollar Tree's (DLTR) Outperform Rating Reiterated at Telsey Advisory Group

Key Points

• Telsey Advisory Group has reiterated an "outperform" rating for Dollar Tree (DLTR), with a price target of $130.00, indicating a potential upside of approximately 35.46% from the stock's previous close.
• Dollar Tree reported a quarterly earnings per share (EPS) of $0.77, significantly exceeding the consensus estimate of $0.38, and a revenue of $4.57 billion, which was above analyst expectations.
• The company's Board of Directors has authorized a $2.50 billion stock buyback plan, which typically indicates management's belief that shares are undervalued.

Dollar Tree (NASDAQ:DLTR - Get Free Report)'s stock had its "outperform" rating restated by equities researchers at Telsey Advisory Group in a note issued to investors on Thursday,Benzinga reports. They currently have a $130.00 price target on the stock. Telsey Advisory Group's target price suggests a potential upside of 35.46% from the stock's previous close.

DLTR has been the subject of a number of other reports. Piper Sandler dropped their price target on shares of Dollar Tree from $112.00 to $108.00 and set a "neutral" rating for the company in a research note on Thursday, September 4th. Wells Fargo & Company decreased their price objective on shares of Dollar Tree from $130.00 to $115.00 and set an "overweight" rating for the company in a report on Friday, October 10th. UBS Group restated a "buy" rating and set a $140.00 price objective on shares of Dollar Tree in a report on Tuesday, August 26th. Weiss Ratings restated a "sell (d-)" rating on shares of Dollar Tree in a report on Wednesday, October 8th. Finally, Truist Financial boosted their price objective on shares of Dollar Tree from $127.00 to $129.00 and gave the company a "buy" rating in a report on Wednesday, September 3rd. Eight analysts have rated the stock with a Buy rating, ten have given a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $108.83.

Dollar Tree Stock Performance

NASDAQ:DLTR opened at $95.97 on Thursday. The company has a current ratio of 1.04, a quick ratio of 0.27 and a debt-to-equity ratio of 0.67. The firm has a market capitalization of $19.58 billion, a PE ratio of -7.07, a PEG ratio of 1.74 and a beta of 0.85. The firm's fifty day simple moving average is $101.62 and its 200 day simple moving average is $95.76. Dollar Tree has a 1 year low of $60.49 and a 1 year high of $118.06.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its quarterly earnings results on Wednesday, September 3rd. The company reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.38 by $0.39. Dollar Tree had a negative net margin of 13.46% and a positive return on equity of 23.52%. The company had revenue of $4.57 billion for the quarter, compared to analyst estimates of $4.46 billion. During the same period last year, the business posted $0.67 EPS. The business's quarterly revenue was up 12.3% on a year-over-year basis. Dollar Tree has set its FY 2025 guidance at 5.320-5.720 EPS. On average, sell-side analysts anticipate that Dollar Tree will post 5.39 EPS for the current year.

Dollar Tree declared that its Board of Directors has authorized a stock buyback plan on Wednesday, July 9th that authorizes the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization authorizes the company to purchase up to 11.5% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at Dollar Tree

In other news, Director Stephanie Stahl sold 1,185 shares of the stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $100.32, for a total value of $118,879.20. Following the transaction, the director directly owned 4,089 shares of the company's stock, valued at $410,208.48. This represents a 22.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 6.60% of the stock is owned by insiders.

Hedge Funds Weigh In On Dollar Tree

Several institutional investors and hedge funds have recently modified their holdings of DLTR. Horizon Investments LLC increased its holdings in Dollar Tree by 5.1% in the 1st quarter. Horizon Investments LLC now owns 2,905 shares of the company's stock valued at $218,000 after buying an additional 140 shares during the period. Applied Finance Capital Management LLC increased its position in Dollar Tree by 2.6% during the 2nd quarter. Applied Finance Capital Management LLC now owns 5,507 shares of the company's stock worth $545,000 after purchasing an additional 140 shares in the last quarter. Louisbourg Investments Inc. boosted its position in Dollar Tree by 0.3% in the third quarter. Louisbourg Investments Inc. now owns 45,304 shares of the company's stock valued at $4,275,000 after buying an additional 144 shares in the last quarter. Compton Wealth Advisory Group LLC lifted its stake in shares of Dollar Tree by 0.4% in the 2nd quarter. Compton Wealth Advisory Group LLC now owns 34,561 shares of the company's stock valued at $3,423,000 after acquiring an additional 148 shares during the last quarter. Finally, Brooklyn Investment Group lifted its stake in shares of Dollar Tree by 79.0% in the 1st quarter. Brooklyn Investment Group now owns 358 shares of the company's stock valued at $27,000 after acquiring an additional 158 shares during the last quarter. 97.40% of the stock is currently owned by institutional investors and hedge funds.

About Dollar Tree

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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