American Century Companies Inc. Trims Stock Holdings in Dollar Tree, Inc. $DLTR

Key Points

• American Century Companies Inc. reduced its stake in Dollar Tree, Inc. by 67.4%, selling 1,415,238 shares during the 1st quarter, now owning 683,187 shares valued at approximately $51.29 million.
• Dollar Tree has initiated a stock buyback program allowing for the repurchase of up to $2.50 billion of its shares, signaling confidence in the stock's value by its board.
• Analysts have recently upgraded Dollar Tree's stock rating, with Barclays raising its price target from $95 to $138, reflecting positive sentiment among market analysts.

American Century Companies Inc. decreased its position in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 67.4% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 683,187 shares of the company's stock after selling 1,415,238 shares during the quarter. American Century Companies Inc. owned 0.32% of Dollar Tree worth $51,287,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds also recently bought and sold shares of the company. Horizon Investments LLC lifted its position in Dollar Tree by 5.1% in the 1st quarter. Horizon Investments LLC now owns 2,905 shares of the company's stock worth $218,000 after buying an additional 140 shares during the last quarter. Private Trust Co. NA lifted its position in Dollar Tree by 11.6% in the 1st quarter. Private Trust Co. NA now owns 1,527 shares of the company's stock worth $115,000 after buying an additional 159 shares during the last quarter. Cary Street Partners Financial LLC lifted its position in Dollar Tree by 8.5% in the 1st quarter. Cary Street Partners Financial LLC now owns 2,381 shares of the company's stock worth $179,000 after buying an additional 186 shares during the last quarter. Amalgamated Bank lifted its position in Dollar Tree by 0.7% in the 1st quarter. Amalgamated Bank now owns 39,283 shares of the company's stock worth $2,949,000 after buying an additional 265 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV lifted its position in Dollar Tree by 6.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 4,656 shares of the company's stock valued at $349,000 after purchasing an additional 292 shares during the last quarter. Institutional investors own 97.40% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have weighed in on DLTR. Truist Financial boosted their price objective on Dollar Tree from $109.00 to $127.00 and gave the company a "buy" rating in a research report on Wednesday, August 13th. Evercore ISI boosted their price objective on Dollar Tree from $104.00 to $108.00 and gave the company an "in-line" rating in a research report on Tuesday, August 12th. Guggenheim reiterated a "buy" rating and issued a $100.00 price objective on shares of Dollar Tree in a research report on Thursday, June 5th. Sanford C. Bernstein set a $82.00 price objective on Dollar Tree and gave the company a "market perform" rating in a research report on Monday, May 5th. Finally, The Goldman Sachs Group downgraded Dollar Tree from a "strong-buy" rating to a "strong sell" rating in a research report on Thursday, June 5th. Seven equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, Dollar Tree presently has a consensus rating of "Hold" and an average price target of $100.89.

Insiders Place Their Bets

In related news, CMO Richard L. Mcneely sold 21,026 shares of the company's stock in a transaction 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 sale, the chief marketing officer directly owned 50,419 shares of the company's stock, valued at $4,770,645.78. This represents a 29.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 6.60% of the stock is currently owned by insiders.

Dollar Tree Trading Up 0.6%

Shares of DLTR traded up $0.73 during mid-day trading on Friday, hitting $113.32. 2,223,637 shares of the company's stock traded hands, compared to its average volume of 2,995,577. The company has a quick ratio of 0.72, a current ratio of 1.04 and a debt-to-equity ratio of 0.62. Dollar Tree, Inc. has a 1 year low of $60.49 and a 1 year high of $118.06. The firm has a market capitalization of $23.65 billion, a P/E ratio of -8.18, a PEG ratio of 2.42 and a beta of 0.88. The business's 50-day moving average price is $108.53 and its 200-day moving average price is $88.74.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its earnings results on Wednesday, June 4th. The company reported $1.26 earnings per share (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 analysts' expectations of $4.52 billion. Dollar Tree had a positive return on equity of 19.36% and a negative net margin of 12.15%.The business's revenue was up 11.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.43 earnings per share. Dollar Tree has set its FY 2025 guidance at 5.150-5.650 EPS. As a group, sell-side analysts forecast that Dollar Tree, Inc. will post 5.39 EPS for the current fiscal year.

Dollar Tree announced that its Board of Directors has authorized a stock buyback program on Wednesday, July 9th that permits the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization permits the company to purchase up to 11.5% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's leadership believes its shares are undervalued.

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.