Baird Financial Group Inc. Invests $7.60 Million in Dollar Tree, Inc. $DLTR

Key Points

• Baird Financial Group initiated a $7.6 million Dollar Tree position by purchasing 62,832 shares in the second quarter. Institutional investors and hedge funds collectively own 97.4% of the company.
• Dollar Tree reported strong quarterly results, with $2.70 in EPS versus the $1.15 consensus estimate and revenue of $4.89 billion, up 7% year over year. The company issued fiscal 2026 EPS guidance of $7.70–$8.05.
• The board authorized a $2.5 billion share repurchase program, covering up to 10.7% of outstanding shares. Analysts maintain a consensus “Hold” rating with an average price target of $131.68, while recent insider transactions involved stock sales.

Baird Financial Group Inc. bought a new stake in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 62,832 shares of the company's stock, valued at approximately $7,600,000.

Other institutional investors have also added to or reduced their stakes in the company. California State Teachers Retirement System lifted its position in shares of Dollar Tree by 13,223.3% in the 2nd quarter. California State Teachers Retirement System now owns 34,952,131 shares of the company's stock worth $4,227,460,000 after acquiring an additional 34,689,793 shares during the period. BlackRock Inc. bought a new stake in shares of Dollar Tree during the second quarter valued at approximately $2,643,741,000. Pzena Investment Management LLC bought a new stake in shares of Dollar Tree during the second quarter valued at approximately $1,176,661,000. Primecap Management Co. CA bought a new stake in shares of Dollar Tree during the second quarter valued at approximately $455,845,000. Finally, Bank of America Corp DE acquired a new position in shares of Dollar Tree in the second quarter valued at $385,350,000. 97.40% of the stock is owned by institutional investors and hedge funds.

Dollar Tree Stock Up 0.8%

DLTR opened at $119.17 on Tuesday. The firm has a market cap of $22.36 billion, a price-to-earnings ratio of 14.55, a PEG ratio of 1.09 and a beta of 0.66. The company has a debt-to-equity ratio of 0.86, a quick ratio of 0.39 and a current ratio of 1.13. The firm's 50-day simple moving average is $127.22 and its 200-day simple moving average is $114.45. Dollar Tree, Inc. has a twelve month low of $84.71 and a twelve month high of $142.40.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last announced its quarterly earnings results on Thursday, August 27th. The company reported $2.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.15 by $1.55. The firm had revenue of $4.89 billion during the quarter, compared to the consensus estimate of $4.86 billion. Dollar Tree had a net margin of 8.03% and a return on equity of 38.61%. The firm's quarterly revenue was up 7.0% on a year-over-year basis. During the same period last year, the firm posted $0.77 EPS. Dollar Tree has set its Q3 2026 guidance at 0.800-0.950 EPS and its FY 2026 guidance at 7.700-8.050 EPS. Equities research analysts anticipate that Dollar Tree, Inc. will post 7.95 EPS for the current fiscal year.

Dollar Tree declared that its board has initiated a share buyback plan on Thursday, July 2nd that allows the company to repurchase $2.50 billion in shares. This repurchase authorization allows the company to purchase up to 10.7% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's leadership believes its stock is undervalued.

Insider Activity at Dollar Tree

In related news, Director Stephanie Stahl sold 1,185 shares of the stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $131.47, for a total transaction of $155,791.95. Following the sale, the director directly owned 4,089 shares in the company, valued at $537,580.83. This represents a 22.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Robert Aflatooni sold 2,500 shares of the firm's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $126.01, for a total value of $315,025.00. Following the sale, the insider directly owned 24,820 shares of the company's stock, valued at $3,127,568.20. This represents a 9.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 7.10% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the company. Freedom Capital cut Dollar Tree from a "strong-buy" rating to a "hold" rating in a research report on Thursday, May 28th. Weiss Ratings raised shares of Dollar Tree from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, August 28th. UBS Group increased their price objective on shares of Dollar Tree from $145.00 to $150.00 and gave the company a "buy" rating in a research note on Friday, August 28th. Evercore raised shares of Dollar Tree from a "hold" rating to an "outperform" rating in a report on Wednesday, July 8th. Finally, Guggenheim lifted their target price on shares of Dollar Tree from $135.00 to $145.00 and gave the company a "buy" rating in a research report on Tuesday, August 25th. Eleven analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Dollar Tree has an average rating of "Hold" and a consensus target price of $131.68.

Dollar Tree Profile

Dollar Tree, Inc operates discount variety stores under the Dollar Tree brand. Its stores offer a broad selection of merchandise at value-oriented prices, including consumable products, household supplies, seasonal items, toys, health and personal-care products, and other general merchandise. Product assortments may include both nationally recognized brands and private-label goods.

The company traces its origins to discount retail operations established in the 1950s and adopted the Dollar Tree name in the early 1990s.

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