Connor Clark & Lunn Investment Management Ltd. Invests $1.69 Million in Dollar Tree, Inc. $DLTR

Key Points

• Connor Clark & Lunn Investment Management acquired 13,969 Dollar Tree shares worth approximately $1.69 million during the second quarter. Institutional investors collectively own 97.4% of the company.
• Dollar Tree reported strong second-quarter results, with revenue rising 7% year over year to $4.89 billion and EPS of $2.70, well above the $1.15 analyst consensus. Comparable-store sales increased 3.7%.
• The company raised its fiscal 2026 adjusted EPS guidance to $7.70–$8.05 and authorized a $2.5 billion share repurchase program, although third-quarter EPS guidance of $0.80–$0.95 fell below analyst expectations.

Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The fund acquired 13,969 shares of the company's stock, valued at approximately $1,690,000.

Other hedge funds also recently made changes to their positions in the company. Cullen Frost Bankers Inc. bought a new stake in Dollar Tree during the 4th quarter worth approximately $25,000. Reflection Asset Management bought a new position in shares of Dollar Tree in the fourth quarter worth approximately $25,000. Covestor Ltd increased its stake in shares of Dollar Tree by 60.9% in the fourth quarter. Covestor Ltd now owns 222 shares of the company's stock worth $27,000 after purchasing an additional 84 shares in the last quarter. Basecamp Wealth Advisors LLC raised its position in shares of Dollar Tree by 59.9% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 259 shares of the company's stock valued at $28,000 after purchasing an additional 97 shares during the period. Finally, Wilkerson Advisory Group LLC raised its position in shares of Dollar Tree by 80.1% during the 1st quarter. Wilkerson Advisory Group LLC now owns 263 shares of the company's stock valued at $29,000 after purchasing an additional 117 shares during the period. 97.40% of the stock is currently owned by institutional investors.

Dollar Tree Trading Up 1.0%

DLTR opened at $128.26 on Friday. The firm has a market cap of $24.65 billion, a P/E ratio of 15.66, a P/E/G ratio of 1.40 and a beta of 0.64. Dollar Tree, Inc. has a 12 month low of $84.71 and a 12 month high of $142.40. The company has a current ratio of 1.13, a quick ratio of 0.39 and a debt-to-equity ratio of 0.86. The stock has a 50-day moving average of $126.03 and a 200 day moving average of $114.77.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last issued its quarterly earnings data on Thursday, August 27th. The company reported $2.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.15 by $1.55. The business had revenue of $4.89 billion for the quarter, compared to the consensus estimate of $4.86 billion. Dollar Tree had a return on equity of 38.61% and a net margin of 8.03%.The company's quarterly revenue was up 7.0% compared to the same quarter last year. During the same period in the prior year, the business posted $0.77 earnings per share. 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. As a group, research analysts forecast that Dollar Tree, Inc. will post 7.13 EPS for the current year.

Dollar Tree declared that its Board of Directors has initiated a stock buyback program on Thursday, July 2nd that allows the company to buyback $2.50 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 10.7% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

More Dollar Tree News

Here are the key news stories impacting Dollar Tree this week:

• Positive Sentiment: Dollar Tree reported second-quarter revenue of $4.89 billion, up 7% year over year and above estimates of approximately $4.86 billion. Adjusted earnings per share reached $2.70, substantially exceeding the $1.15 consensus, helped by higher markups, lower freight costs, reduced shrinkage and tariff-related refunds. Dollar Tree beats quarterly revenue estimates on steady demand
• Positive Sentiment: Comparable-store sales rose 3.7%, driven by a 3.3% increase in average ticket and positive customer traffic of 0.4%. Management also cited improving assortments and continued demand for affordable essentials. Dollar Tree Q2 earnings call highlights
• Positive Sentiment: Management raised full-year fiscal 2026 adjusted EPS guidance to $7.70–$8.05 from $6.70–$7.10. Dollar Tree also repurchased approximately 5.6 million shares for $605 million during the quarter, supporting per-share results. Dollar Tree lifts earnings outlook
• Neutral Sentiment: Dollar Tree is attracting more middle- and high-income shoppers seeking value, while lower-income customers remain pressured by the cost of necessities. This broadens the customer base but also highlights uneven consumer health. Dollar Tree attracts higher-income customers
• Negative Sentiment: Third-quarter adjusted EPS guidance of $0.80–$0.95 was well below the roughly $1.40 analyst expectation. Investors viewed the outlook as evidence that fuel costs, tariffs and reinvestment expenses could pressure profitability, overshadowing the second-quarter beat and the higher full-year forecast. Dollar Tree cites higher fuel prices as a headwind

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the company. BNP Paribas Exane increased their price target on Dollar Tree from $88.00 to $98.00 and gave the stock an "underperform" rating in a research note on Friday, May 29th. Sanford C. Bernstein reaffirmed a "market perform" rating and issued a $130.00 price objective on shares of Dollar Tree in a research note on Friday. Wells Fargo & Company increased their target price on Dollar Tree from $145.00 to $155.00 and gave the stock an "overweight" rating in a research report on Monday, August 17th. Freedom Capital downgraded Dollar Tree from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 28th. Finally, Gordon Haskett raised Dollar Tree from a "reduce" rating to a "hold" rating and set a $115.00 price target on the stock in a report on Thursday, June 4th. Ten research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, Dollar Tree presently has a consensus rating of "Hold" and a consensus price target of $129.18.

About Dollar Tree

Dollar Tree, Inc is a North American discount retailer that operates a portfolio of value-oriented store banners, primarily Dollar Tree and Family Dollar. The company's stores offer a broad assortment of everyday items at low price points, including household essentials, food and snacks, health and beauty products, cleaning supplies, seasonal and party goods, home décor, and basic apparel. Dollar Tree's merchandising strategy emphasizes high-turnover branded and private-label merchandise tailored to budget-conscious consumers, with Family Dollar complementing the chain by offering a wider range of price points and assortment depth in smaller-format neighborhood locations.

Founded in 1986 and headquartered in Chesapeake, Virginia, Dollar Tree has grown through both organic store openings and acquisitions.

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