Corvex Management LP Has $241.03 Million Stock Holdings in Dollar Tree, Inc. $DLTR

Key Points

• Corvex Management LP has increased its stake in Dollar Tree, Inc. by 11.2%, making it the firm's 3rd largest position at 3,210,753 shares valued at approximately $241 million.
• Dollar Tree recently reported a quarterly EPS of $0.77, surpassing analyst expectations, with revenues reaching $4.57 billion—a 12.3% increase from the previous year.
• The company has approved a stock repurchase plan allowing for up to $2.50 billion in share buybacks, indicating management's belief that shares are currently undervalued.

Corvex Management LP boosted its position in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 11.2% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 3,210,753 shares of the company's stock after acquiring an additional 324,018 shares during the period. Dollar Tree accounts for 9.1% of Corvex Management LP's portfolio, making the stock its 3rd largest position. Corvex Management LP owned 1.49% of Dollar Tree worth $241,031,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in DLTR. AQR Capital Management LLC bought a new position in shares of Dollar Tree in the 4th quarter valued at about $4,842,000. Mercer Global Advisors Inc. ADV lifted its holdings 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 buying an additional 292 shares during the period. Cary Street Partners Financial LLC bought a new position in Dollar Tree in the fourth quarter valued at approximately $164,000. Deutsche Bank AG grew its holdings in Dollar Tree by 4.2% during the 4th quarter. Deutsche Bank AG now owns 911,989 shares of the company's stock worth $68,344,000 after acquiring an additional 36,474 shares during the period. Finally, Estuary Capital Management LP grew its holdings in Dollar Tree by 46.3% during the 4th quarter. Estuary Capital Management LP now owns 611,945 shares of the company's stock worth $45,859,000 after acquiring an additional 193,529 shares during the period. 97.40% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

DLTR has been the topic of several recent research reports. Cfra Research upgraded Dollar Tree to a "hold" rating in a research report on Wednesday, May 28th. Barclays raised Dollar Tree from an "equal weight" rating to an "overweight" rating and increased their target price for the company from $95.00 to $138.00 in a research note on Monday, July 21st. The Goldman Sachs Group lowered Dollar Tree from a "strong-buy" rating to a "strong sell" rating in a research report on Thursday, June 5th. JPMorgan Chase & Co. upped their price target on Dollar Tree from $138.00 to $140.00 and gave the company an "overweight" rating in a research note on Thursday. Finally, Evercore ISI lifted their price objective on shares of Dollar Tree from $108.00 to $110.00 and gave the stock an "in-line" rating in a research note on Tuesday, August 26th. Eight research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $108.26.

Dollar Tree Stock Down 1.7%

Shares of DLTR traded down $1.72 on Monday, hitting $99.40. The company's stock had a trading volume of 7,462,935 shares, compared to its average volume of 4,201,589. The firm's fifty day moving average price is $110.41 and its 200-day moving average price is $91.28. Dollar Tree, Inc. has a fifty-two week low of $60.49 and a fifty-two week high of $118.06. The company has a quick ratio of 0.27, a current ratio of 1.04 and a debt-to-equity ratio of 0.67. The firm has a market capitalization of $20.27 billion, a price-to-earnings ratio of -7.32, a P/E/G ratio of 1.84 and a beta of 0.89.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last issued its quarterly earnings data on Wednesday, September 3rd. The company reported $0.77 EPS for the quarter, topping analysts' consensus estimates of $0.38 by $0.39. The business had revenue of $4.57 billion for the quarter, compared to analyst estimates of $4.46 billion. Dollar Tree had a negative net margin of 13.46% and a positive return on equity of 23.52%. The firm's quarterly revenue was up 12.3% on a year-over-year basis. During the same period last year, the business posted $0.67 earnings per share. Dollar Tree has set its FY 2025 guidance at 5.320-5.720 EPS. On average, equities research analysts expect that Dollar Tree, Inc. will post 5.39 EPS for the current year.

Dollar Tree declared that its board has authorized a share repurchase program on Wednesday, July 9th that permits the company to buyback $2.50 billion in shares. This buyback authorization permits the company to buy up to 11.5% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

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.