Dollar Tree's (DLTR) "Underperform" Rating Reiterated at Jefferies Financial Group

Key Points

• Jefferies Financial Group has reiterated an "underperform" rating for Dollar Tree, lowering its target price from $110.00 to $70.00, indicating a potential downside of 20.16% from the current stock price.
• Recent earnings results showed that Dollar Tree reported $0.77 EPS for the quarter, exceeding consensus estimates and reflecting a 12.3% year-over-year revenue increase.
• The company has authorized a $2.50 billion stock buyback plan, signaling confidence in its valuation and the potential to repurchase up to 11.5% of its shares.

Dollar Tree (NASDAQ:DLTR - Get Free Report)'s stock had its "underperform" rating restated by equities researchers at Jefferies Financial Group in a report issued on Tuesday,Benzinga reports. They currently have a $70.00 target price on the stock, down from their previous target price of $110.00. Jefferies Financial Group's target price points to a potential downside of 20.16% from the stock's current price.

Other equities analysts also recently issued research reports about the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of Dollar Tree in a report on Saturday, September 27th. Guggenheim dropped their price objective on shares of Dollar Tree from $130.00 to $125.00 and set a "buy" rating on the stock in a report on Monday, September 8th. Barclays raised shares of Dollar Tree from an "equal weight" rating to an "overweight" rating and raised their price objective for the stock from $95.00 to $138.00 in a report on Monday, July 21st. Truist Financial raised their price objective on shares of Dollar Tree from $127.00 to $129.00 and gave the stock a "buy" rating in a report on Wednesday, September 3rd. Finally, Wolfe Research began coverage on shares of Dollar Tree in a report on Thursday, September 18th. They issued a "peer perform" rating on the stock. Eight equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, Dollar Tree currently has a consensus rating of "Hold" and an average target price of $110.24.

Dollar Tree Stock Performance

Shares of DLTR stock opened at $87.68 on Tuesday. The company has a 50 day moving average price of $105.05 and a 200-day moving average price of $95.16. Dollar Tree has a 52 week low of $60.49 and a 52 week high of $118.06. The firm has a market capitalization of $17.88 billion, a PE ratio of -6.46, a P/E/G ratio of 1.64 and a beta of 0.85. The company has a quick ratio of 0.27, a current ratio of 1.04 and a debt-to-equity ratio of 0.67.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last announced its quarterly earnings results on Wednesday, September 3rd. The company reported $0.77 EPS for the quarter, topping analysts' consensus estimates 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 firm had revenue of $4.57 billion during the quarter, compared to analyst estimates of $4.46 billion. During the same period in the previous year, the business posted $0.67 earnings per share. The business's revenue for the quarter was up 12.3% on a year-over-year basis. Dollar Tree has set its FY 2025 guidance at 5.320-5.720 EPS. As a group, equities research analysts expect that Dollar Tree will post 5.39 earnings per share for the current year.

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

Insiders Place Their Bets

In other Dollar Tree news, Director Stephanie Stahl sold 1,185 shares of Dollar Tree stock in a transaction that occurred on Friday, September 5th. The shares were sold at an average price of $100.32, for a total transaction of $118,879.20. Following the transaction, the director owned 4,089 shares of the company's stock, valued at $410,208.48. The trade was a 22.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 6.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Dollar Tree

Hedge funds have recently modified their holdings of the stock. Wealth Enhancement Advisory Services LLC lifted its holdings in shares of Dollar Tree by 50.7% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 13,724 shares of the company's stock worth $1,030,000 after buying an additional 4,619 shares in the last quarter. LBP AM SA purchased a new position in shares of Dollar Tree in the second quarter worth $7,742,000. McGinn Penninger Investment Management Inc. lifted its holdings in shares of Dollar Tree by 13.2% in the first quarter. McGinn Penninger Investment Management Inc. now owns 68,585 shares of the company's stock worth $5,149,000 after buying an additional 8,015 shares in the last quarter. IFM Investors Pty Ltd lifted its holdings in shares of Dollar Tree by 7.5% in the second quarter. IFM Investors Pty Ltd now owns 38,021 shares of the company's stock worth $3,766,000 after buying an additional 2,666 shares in the last quarter. Finally, Bastion Asset Management Inc. purchased a new position in shares of Dollar Tree in the first quarter worth $3,585,000. Hedge funds and other institutional investors own 97.40% of the company's stock.

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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