Burgundy Asset Management Ltd. Sells 49,606 Shares of Dollar Tree, Inc. $DLTR

Key Points

• Burgundy Asset Management Ltd. has reduced its stake in Dollar Tree, Inc. by 2.9%, now holding approximately 1.68 million shares valued at $126 million.
• Dollar Tree's board has initiated a $2.50 billion share buyback plan, allowing the repurchase of up to 11.5% of its stocks, signaling management's belief that the shares are undervalued.
• The company reported earnings of $1.26 per share for its most recent quarter, exceeding analysts' expectations, with revenues increasing by 11.3% to $4.64 billion compared to the same quarter last year.

Burgundy Asset Management Ltd. cut its stake in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 2.9% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,679,012 shares of the company's stock after selling 49,606 shares during the quarter. Burgundy Asset Management Ltd. owned about 0.78% of Dollar Tree worth $126,043,000 at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in 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 valued at $218,000 after purchasing an additional 140 shares during the last quarter. Private Trust Co. NA increased its stake in Dollar Tree by 11.6% during the 1st quarter. Private Trust Co. NA now owns 1,527 shares of the company's stock valued at $115,000 after buying an additional 159 shares during the period. Cary Street Partners Financial LLC increased its stake in Dollar Tree by 8.5% during the 1st quarter. Cary Street Partners Financial LLC now owns 2,381 shares of the company's stock valued at $179,000 after buying an additional 186 shares during the period. Amalgamated Bank increased its stake in Dollar Tree by 0.7% during the 1st quarter. Amalgamated Bank now owns 39,283 shares of the company's stock valued at $2,949,000 after buying an additional 265 shares during the period. Finally, Mercer Global Advisors Inc. ADV increased its stake in Dollar Tree by 6.7% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 4,656 shares of the company's stock valued at $349,000 after buying an additional 292 shares during the period. 97.40% of the stock is owned by hedge funds and other institutional investors.

Dollar Tree Stock Down 0.7%

NASDAQ DLTR traded down $0.76 on Thursday, reaching $112.59. The stock had a trading volume of 2,557,072 shares, compared to its average volume of 4,109,970. The business has a 50 day moving average price of $107.83 and a 200 day moving average price of $88.08. The company has a current ratio of 1.04, a quick ratio of 0.72 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 company has a market capitalization of $23.50 billion, a price-to-earnings ratio of -8.12, a P/E/G ratio of 2.40 and a beta of 0.88.

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

Dollar Tree declared that its board has authorized a stock buyback plan on Wednesday, July 9th that authorizes the company to buyback $2.50 billion in outstanding shares. This buyback authorization authorizes the company to repurchase up to 11.5% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its shares are undervalued.

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 dated Friday, June 6th. The stock was sold at an average price of $94.62, for a total transaction of $1,989,480.12. Following the transaction, the chief marketing officer directly owned 50,419 shares in the company, valued at $4,770,645.78. This trade represents a 29.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 6.60% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

DLTR has been the topic of several research analyst reports. Morgan Stanley raised their target price on shares of Dollar Tree from $80.00 to $96.00 and gave the company an "equal weight" rating in a research note on Thursday, June 5th. Barclays upgraded shares of Dollar Tree from an "equal weight" rating to an "overweight" rating and raised their target price for the stock from $95.00 to $138.00 in a report on Monday, July 21st. Wells Fargo & Company lifted their price target on Dollar Tree from $105.00 to $130.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 22nd. Piper Sandler increased their price objective on Dollar Tree from $93.00 to $112.00 and gave the stock a "neutral" rating in a research note on Tuesday. Finally, BMO Capital Markets increased their price objective on Dollar Tree from $80.00 to $85.00 and gave the stock a "market perform" rating in a research note on Thursday, June 5th. Seven investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $100.89.

Dollar Tree Profile

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.