Dimensional Fund Advisors LP Raises Stake in Dollar Tree, Inc. $DLTR

Key Points

• Dimensional Fund Advisors LP increased its stake in Dollar Tree by 0.3% in Q1, acquiring an additional 6,883 shares, bringing its total ownership to 2,634,993 shares valued at approximately $197.8 million.
• Institutional investors own about 97.4% of Dollar Tree's stock, with notable increases from firms like Vanguard Group and T. Rowe Price in previous quarters.
• Dollar Tree recently approved a $2.5 billion share repurchase plan, which suggests that the company's board believes its shares are undervalued.

Dimensional Fund Advisors LP raised its stake in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 0.3% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,634,993 shares of the company's stock after purchasing an additional 6,883 shares during the period. Dimensional Fund Advisors LP owned 1.23% of Dollar Tree worth $197,765,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Zions Bancorporation National Association UT purchased a new position in Dollar Tree during the first quarter valued at $30,000. CX Institutional purchased a new position in Dollar Tree during the first quarter valued at $43,000. Sentry Investment Management LLC purchased a new position in Dollar Tree during the first quarter valued at $48,000. GeoWealth Management LLC purchased a new position in Dollar Tree during the fourth quarter valued at $61,000. Finally, MassMutual Private Wealth & Trust FSB raised its position in shares of Dollar Tree by 121.4% in the first quarter. MassMutual Private Wealth & Trust FSB now owns 974 shares of the company's stock valued at $73,000 after buying an additional 534 shares during the last quarter. 97.40% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Dollar Tree

In other 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 value of $1,989,480.12. Following the completion of the transaction, 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 SEC, which can be accessed through the SEC website. Insiders own 6.60% of the company's stock.

Dollar Tree Trading Up 0.6%

DLTR stock traded up $0.73 during mid-day trading on Friday, hitting $113.32. 2,223,637 shares of the company were exchanged, 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. The firm has a market capitalization of $23.65 billion, a P/E ratio of -8.18, a PEG ratio of 2.40 and a beta of 0.88. The business has a fifty day simple moving average of $108.53 and a 200-day simple moving average of $88.64. Dollar Tree, Inc. has a 12-month low of $60.49 and a 12-month high of $118.06.

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

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the stock. Telsey Advisory Group reiterated a "market perform" rating and issued a $95.00 target price on shares of Dollar Tree in a research report on Wednesday, June 4th. Evercore ISI increased their target price on shares of Dollar Tree from $104.00 to $108.00 and gave the company an "in-line" rating in a research report on Tuesday, August 12th. Piper Sandler increased their target price on shares of Dollar Tree from $93.00 to $112.00 and gave the company a "neutral" rating in a research report on Tuesday. Barclays upgraded shares of Dollar Tree from an "equal weight" rating to an "overweight" rating and raised their price objective for the stock from $95.00 to $138.00 in a research report on Monday, July 21st. Finally, The Goldman Sachs Group cut shares of Dollar Tree from a "strong-buy" rating to a "strong sell" rating in a research report on Thursday, June 5th. Seven investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average 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.