Allstate Corp Boosts Stake in Dollar Tree, Inc. $DLTR

Key Points

• Allstate Corp increased its stake in Dollar Tree, Inc. by 63.5% in the first quarter, now owning 9,863 shares worth approximately $740,000.
• Several large investors have also raised their positions in Dollar Tree, with Price T Rowe Associates increasing its stake by 69.6% to over 5.8 million shares valued at $439 million.
• The company has initiated a $2.5 billion share buyback plan, allowing for the repurchase of up to 11.5% of its stock, indicating management's belief that the stock is undervalued.

Allstate Corp boosted its holdings in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 63.5% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 9,863 shares of the company's stock after acquiring an additional 3,832 shares during the quarter. Allstate Corp's holdings in Dollar Tree were worth $740,000 at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. Balyasny Asset Management L.P. increased its position in shares of Dollar Tree by 2,489.9% during 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 last quarter. Price T Rowe Associates Inc. MD lifted its holdings in shares of Dollar Tree by 69.6% in the 1st 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. Corvex Management LP lifted its holdings in shares of Dollar Tree by 155.2% in the 4th quarter. Corvex Management LP now owns 2,886,735 shares of the company's stock worth $216,332,000 after acquiring an additional 1,755,761 shares during the last quarter. EdgePoint Investment Group Inc. boosted its position in shares of Dollar Tree by 14.4% during the 4th quarter. EdgePoint Investment Group Inc. now owns 7,940,163 shares of the company's stock worth $595,036,000 after purchasing an additional 1,000,637 shares during the period. Finally, Federated Hermes Inc. increased its holdings in Dollar Tree by 5,400.7% in the 1st quarter. Federated Hermes Inc. now owns 742,876 shares of the company's stock valued at $55,768,000 after purchasing an additional 729,371 shares during the last quarter. Institutional investors and hedge funds own 97.40% of the company's stock.

Insiders Place Their Bets

In other Dollar Tree news, CMO Richard L. Mcneely sold 21,026 shares of the firm's stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $94.62, for a total transaction of $1,989,480.12. Following the sale, the chief marketing officer owned 50,419 shares of the company's stock, valued at approximately $4,770,645.78. This trade represents a 29.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 6.60% of the stock is currently owned by insiders.

Dollar Tree Stock Down 3.1%

Shares of DLTR traded down $3.47 during midday trading on Friday, reaching $109.03. The stock had a trading volume of 2,194,435 shares, compared to its average volume of 4,063,580. The company has a market cap of $22.75 billion, a price-to-earnings ratio of -7.88, a PEG ratio of 2.40 and a beta of 0.88. The company's fifty day simple moving average is $109.66 and its two-hundred day simple moving average is $89.70. Dollar Tree, Inc. has a 1-year low of $60.49 and a 1-year high of $118.06. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.04 and a quick ratio of 0.72.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its earnings results on Wednesday, June 4th. The company reported $1.26 EPS for the quarter, beating the consensus estimate of $1.21 by $0.05. The firm had revenue of $4.64 billion for the quarter, compared to analyst estimates of $4.52 billion. Dollar Tree had a positive return on equity of 19.36% and a negative net margin of 12.15%.Dollar Tree's revenue for the quarter was up 11.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.43 earnings per share. Dollar Tree has set its FY 2025 guidance at 5.150-5.650 EPS. Equities research analysts expect that Dollar Tree, Inc. will post 5.39 earnings per share for the current year.

Dollar Tree declared that its board has approved a share 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 generally a sign that the company's board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

DLTR has been the topic of a number of research reports. Piper Sandler upped their price target on Dollar Tree from $93.00 to $112.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 19th. Guggenheim reiterated a "buy" rating and issued a $100.00 price objective on shares of Dollar Tree in a report on Thursday, June 5th. Barclays raised Dollar Tree from an "equal weight" rating to an "overweight" rating and increased their target price for the stock from $95.00 to $138.00 in a research note on Monday, July 21st. Sanford C. Bernstein set a $82.00 target price on Dollar Tree and gave the company a "market perform" rating in a research report on Monday, May 5th. Finally, UBS Group reiterated a "buy" rating and set a $140.00 price target on shares of Dollar Tree in a research note on Tuesday. Eight analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $104.53.

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.