Evercore ISI Lowers Dollar Tree (NASDAQ:DLTR) Price Target to $105.00

Key Points

• Evercore ISI has lowered its price target for Dollar Tree from $108.00 to $105.00, maintaining an "in-line" rating, indicating an expected upside of 11% from its previous close.
• Dollar Tree recently reported quarterly earnings of $0.77 EPS, surpassing expectations, with revenues of $4.57 billion reflecting a 12.3% increase year-over-year.
• The company initiated a $2.50 billion share repurchase program, suggesting the board believes its shares are undervalued, and 97.40% of the company’s stock is held by institutional investors.

Dollar Tree (NASDAQ:DLTR - Get Free Report) had its target price decreased by stock analysts at Evercore ISI from $108.00 to $105.00 in a research note issued on Tuesday,Benzinga reports. The brokerage currently has an "in-line" rating on the stock. Evercore ISI's price objective suggests a potential upside of 11.00% from the stock's previous close.

Several other equities analysts have also issued reports on the stock. BNP Paribas lowered shares of Dollar Tree from a "strong-buy" rating to a "hold" rating in a report on Thursday, September 4th. JPMorgan Chase & Co. upped their price target on shares of Dollar Tree from $138.00 to $140.00 and gave the company an "overweight" rating in a report on Thursday, September 4th. Cfra Research upgraded shares of Dollar Tree to a "hold" rating in a research report on Wednesday, May 28th. Gordon Haskett downgraded shares of Dollar Tree from a "hold" rating to a "reduce" rating and set a $95.00 price target for the company. in a research report on Wednesday, September 3rd. Finally, Bank of America increased their price objective on shares of Dollar Tree from $70.00 to $75.00 and gave the company an "underperform" rating in a report on Thursday, September 4th. Eight analysts have rated the stock with a Buy rating, eleven have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $111.29.

Dollar Tree Stock Performance

Shares of NASDAQ:DLTR traded up $0.11 during midday trading on Tuesday, hitting $94.59. The company had a trading volume of 581,425 shares, compared to its average volume of 4,225,984. The company has a market cap of $19.29 billion, a price-to-earnings ratio of -6.97, a PEG ratio of 1.73 and a beta of 0.89. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.04 and a quick ratio of 0.27. The company has a fifty day moving average of $108.87 and a two-hundred day moving average of $93.24. Dollar Tree has a 12-month low of $60.49 and a 12-month high of $118.06.

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, beating 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 the consensus estimate of $4.46 billion. During the same quarter last year, the firm earned $0.67 EPS. The firm's revenue for the quarter was up 12.3% compared to the same quarter last year. Dollar Tree has set its FY 2025 guidance at 5.320-5.720 EPS. On average, equities research analysts expect that Dollar Tree will post 5.39 EPS for the current fiscal year.

Dollar Tree announced that its board has initiated a share repurchase program on Wednesday, July 9th that authorizes the company to repurchase $2.50 billion in shares. This repurchase authorization authorizes the company to repurchase up to 11.5% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's board of directors believes its shares are undervalued.

Insider Activity

In related news, Director Stephanie Stahl sold 1,185 shares of the firm's 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 approximately $410,208.48. This trade represents a 22.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 6.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Dollar Tree

Several hedge funds and other institutional investors have recently modified their holdings of DLTR. Price T Rowe Associates Inc. MD grew its stake in shares of 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 worth $439,025,000 after acquiring an additional 2,400,586 shares during the last quarter. Alliancebernstein L.P. boosted its stake in Dollar Tree by 176.9% during the second quarter. Alliancebernstein L.P. now owns 3,746,222 shares of the company's stock worth $371,026,000 after buying an additional 2,393,172 shares in the last quarter. Alyeska Investment Group L.P. boosted its stake in Dollar Tree by 1,055.1% during the first quarter. Alyeska Investment Group L.P. now owns 2,322,189 shares of the company's stock worth $174,327,000 after buying an additional 2,121,149 shares in the last quarter. Norges Bank acquired a new stake in Dollar Tree during the second quarter worth $185,784,000. Finally, EdgePoint Investment Group Inc. boosted its stake in Dollar Tree by 21.4% during the first quarter. EdgePoint Investment Group Inc. now owns 9,641,507 shares of the company's stock worth $723,788,000 after buying an additional 1,701,344 shares in the last quarter. Institutional investors and hedge funds 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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