Dollar Tree, Inc. $DLTR Stock Position Lifted by EdgePoint Investment Group Inc.

Key Points

• EdgePoint Investment Group Inc. increased its stake in Dollar Tree by 21.4%, making it the firm's 5th largest position, now holding approximately 9.64 million shares valued at $723.8 million.
• Dollar Tree reported a 12.3% year-over-year increase in revenue in its latest quarter, with earnings per share beating expectations at $0.77 compared to the consensus of $0.38.
• The company approved a $2.5 billion share repurchase plan, allowing for the buyback of up to 11.5% of its shares, indicating the board's belief in the stock's undervaluation.

EdgePoint Investment Group Inc. boosted its holdings in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 21.4% in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 9,641,507 shares of the company's stock after purchasing an additional 1,701,344 shares during the quarter. Dollar Tree comprises 5.9% of EdgePoint Investment Group Inc.'s holdings, making the stock its 5th largest holding. EdgePoint Investment Group Inc. owned 4.48% of Dollar Tree worth $723,788,000 as of its most recent SEC filing.

Other hedge funds have also added to or reduced their stakes in the company. Price T Rowe Associates Inc. MD increased its holdings in shares of Dollar Tree by 69.6% during the first quarter. Price T Rowe Associates Inc. MD now owns 5,848,196 shares of the company's stock valued at $439,025,000 after acquiring an additional 2,400,586 shares in the last quarter. Alyeska Investment Group L.P. increased its holdings in shares of Dollar Tree by 1,055.1% during the first quarter. Alyeska Investment Group L.P. now owns 2,322,189 shares of the company's stock valued at $174,327,000 after acquiring an additional 2,121,149 shares in the last quarter. Maverick Capital Ltd. bought a new stake in shares of Dollar Tree during the first quarter valued at approximately $69,890,000. Alliancebernstein L.P. increased its holdings in shares of Dollar Tree by 155.1% during the first quarter. Alliancebernstein L.P. now owns 1,353,050 shares of the company's stock valued at $101,573,000 after acquiring an additional 822,694 shares in the last quarter. Finally, Federated Hermes Inc. increased its holdings in shares of Dollar Tree by 5,400.7% during the first quarter. Federated Hermes Inc. now owns 742,876 shares of the company's stock valued at $55,768,000 after acquiring an additional 729,371 shares in the last quarter. 97.40% of the stock is currently owned by institutional investors.

Dollar Tree Stock Performance

DLTR stock traded down $1.72 during midday trading on Monday, hitting $99.40. The company's stock had a trading volume of 7,462,927 shares, compared to its average volume of 4,202,937. The stock's 50-day moving average price is $110.41 and its 200 day moving average price is $91.28. The company has a quick ratio of 0.27, a current ratio of 1.04 and a debt-to-equity ratio of 0.67. Dollar Tree, Inc. has a 1 year low of $60.49 and a 1 year high of $118.06. The stock has a market cap of $20.27 billion, a price-to-earnings ratio of -7.32, a PEG ratio of 1.84 and a beta of 0.89.

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

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

Analysts Set New Price Targets

Several equities research analysts have recently commented on the company. Guggenheim decreased their price objective on Dollar Tree from $130.00 to $125.00 and set a "buy" rating for the company in a report on Monday. Morgan Stanley boosted their price objective on Dollar Tree from $96.00 to $105.00 and gave the company an "equal weight" rating in a report on Friday. Jefferies Financial Group assumed coverage on Dollar Tree in a report on Thursday, July 17th. They set a "hold" rating and a $106.00 price objective for the company. Evercore ISI boosted their price objective on Dollar Tree from $108.00 to $110.00 and gave the company an "in-line" rating in a report on Tuesday, August 26th. Finally, Piper Sandler decreased their price objective on Dollar Tree from $112.00 to $108.00 and set a "neutral" rating for the company in a report on Thursday. Eight analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, Dollar Tree has a consensus rating of "Hold" and an average target price of $108.26.

About Dollar Tree

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.