Dollar Tree, Inc. $DLTR Stock: Mondrian Investment Partners LTD Cuts Holdings

Key Points

• Mondrian Investment Partners cut its Dollar Tree stake by 49.3% in the third quarter, selling 564,365 shares and retaining 580,590 shares valued at approximately $66.2 million.
• Institutional investors and hedge funds own 97.4% of Dollar Tree. Analysts hold a consensus “Hold” rating with an average price target of $133.14, while insider directors also reported stock sales.
• Dollar Tree exceeded quarterly earnings expectations, reporting $2.70 in EPS on $4.89 billion in revenue, up 7% year over year. The company also authorized a $2.5 billion share-repurchase program covering up to 10.7% of outstanding shares.

Mondrian Investment Partners LTD trimmed its holdings in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 49.3% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 580,590 shares of the company's stock after selling 564,365 shares during the quarter. Dollar Tree accounts for about 1.4% of Mondrian Investment Partners LTD's portfolio, making the stock its 25th largest position. Mondrian Investment Partners LTD owned 0.31% of Dollar Tree worth $66,199,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in shares of Dollar Tree during the second quarter worth $2,643,741,000. Pzena Investment Management LLC bought a new stake in shares of Dollar Tree in the second quarter worth $1,176,661,000. Primecap Management Co. CA acquired a new stake in Dollar Tree in the second quarter valued at $455,845,000. Bank of America Corp DE acquired a new stake in Dollar Tree in the second quarter valued at $385,350,000. Finally, Caisse de depot et placement du Quebec acquired a new stake in Dollar Tree in the second quarter valued at $205,631,000. 97.40% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on DLTR shares. Sanford C. Bernstein reissued a "market perform" rating and set a $130.00 target price on shares of Dollar Tree in a research report on Friday, August 28th. Piper Sandler boosted their price target on shares of Dollar Tree from $114.00 to $121.00 and gave the stock a "neutral" rating in a research report on Monday, August 31st. UBS Group upped their price objective on shares of Dollar Tree from $145.00 to $150.00 and gave the company a "buy" rating in a research note on Friday, August 28th. BMO Capital Markets reaffirmed a "market perform" rating and set a $135.00 price target on shares of Dollar Tree in a research report on Friday, August 28th. Finally, Guggenheim increased their price target on Dollar Tree from $135.00 to $145.00 and gave the stock a "buy" rating in a report on Tuesday, August 25th. Eleven research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $133.14.

Insider Buying and Selling

In other news, Director Stephanie Stahl sold 1,185 shares of the company's stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $131.47, for a total transaction of $155,791.95. Following the transaction, the director directly owned 4,089 shares of the company's stock, valued at $537,580.83. This represents a 22.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Robert Aflatooni sold 2,500 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $126.01, for a total value of $315,025.00. Following the completion of the transaction, the insider owned 24,820 shares in the company, valued at approximately $3,127,568.20. This represents a 9.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 7.10% of the stock is owned by corporate insiders.

Dollar Tree Stock Performance

Shares of DLTR opened at $125.31 on Friday. Dollar Tree, Inc. has a one year low of $85.88 and a one year high of $142.40. The company has a market cap of $23.51 billion, a PE ratio of 15.30, a P/E/G ratio of 1.16 and a beta of 0.71. The stock has a 50-day moving average of $121.99 and a 200-day moving average of $115.42. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.13 and a quick ratio of 0.39.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its quarterly earnings results on Thursday, August 27th. The company reported $2.70 earnings per share for the quarter, topping 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 firm's revenue for the quarter was up 7.0% on a year-over-year basis. During the same period in the prior year, the business earned $0.77 EPS. 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. On average, equities research analysts predict that Dollar Tree, Inc. will post 7.93 EPS for the current fiscal year.

Dollar Tree declared that its Board of Directors has initiated a share repurchase plan on Thursday, July 2nd that allows the company to repurchase $2.50 billion in shares. This buyback authorization allows the company to repurchase up to 10.7% of its shares through open market purchases. Stock buyback plans are usually a sign that the company's board believes its shares are undervalued.

Dollar Tree Profile

Dollar Tree, Inc NASDAQ: DLTR is a discount retailer that operates stores under the Dollar Tree brand in the United States and Canada. Its stores offer a broad selection of merchandise at value-oriented prices, including consumable products, household supplies, health and personal-care items, seasonal goods, toys, party supplies, crafts, and other general merchandise.

The company traces its history to 1986, when its first store opened in Norfolk, Virginia. It later expanded through organic growth and acquisitions, including its 2015 acquisition of Family Dollar, a chain serving primarily urban and rural communities with everyday household and grocery products.

Dollar Tree announced plans to separate from the Family Dollar business and completed the sale in 2025.

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