Prudential PLC Acquires 8,962 Shares of Dollar Tree, Inc. $DLTR

Key Points

• Prudential PLC increased its stake in Dollar Tree, Inc. by 31.9%, owning 37,060 shares valued at approximately $2.78 million as of the latest SEC filing.
• Dollar Tree reported $4.64 billion in revenue for the last quarter, surpassing estimates, and $1.26 earnings per share, beating the consensus forecast.
• The company has authorized a $2.50 billion stock buyback plan to repurchase up to 11.5% of its outstanding shares, indicating management's belief that the stock is undervalued.

Prudential PLC boosted its holdings in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 31.9% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 37,060 shares of the company's stock after acquiring an additional 8,962 shares during the quarter. Prudential PLC's holdings in Dollar Tree were worth $2,782,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the company. Forum Financial Management LP acquired a new position in shares of Dollar Tree in the fourth quarter worth $340,000. Wealth Enhancement Advisory Services LLC increased its holdings in Dollar Tree by 50.7% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 13,724 shares of the company's stock worth $1,030,000 after purchasing an additional 4,619 shares during the period. McGinn Penninger Investment Management Inc. raised its position in Dollar Tree by 13.2% in the 1st quarter. McGinn Penninger Investment Management Inc. now owns 68,585 shares of the company's stock valued at $5,149,000 after purchasing an additional 8,015 shares in the last quarter. Bastion Asset Management Inc. purchased a new position in shares of Dollar Tree in the 1st quarter valued at about $3,585,000. Finally, Empower Advisory Group LLC boosted its stake in shares of Dollar Tree by 8.0% in the 1st quarter. Empower Advisory Group LLC now owns 821,288 shares of the company's stock valued at $61,654,000 after buying an additional 60,865 shares during the period. 97.40% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

DLTR has been the subject of a number of recent research reports. Morgan Stanley lifted their price target on shares of Dollar Tree from $80.00 to $96.00 and gave the stock an "equal weight" rating in a research note on Thursday, June 5th. JPMorgan Chase & Co. raised their price target on Dollar Tree from $111.00 to $138.00 and gave the company an "overweight" rating in a research note on Monday, July 21st. BMO Capital Markets upped their price objective on Dollar Tree from $80.00 to $85.00 and gave the stock a "market perform" rating in a research report on Thursday, June 5th. UBS Group boosted their target price on Dollar Tree from $95.00 to $108.00 and gave the stock a "buy" rating in a research note on Thursday, May 29th. Finally, Sanford C. Bernstein set a $82.00 target price on Dollar Tree and gave the stock a "market perform" rating in a research report on Monday, May 5th. Seven research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Dollar Tree presently has a consensus rating of "Hold" and a consensus price target of $100.89.

Dollar Tree Stock Performance

NASDAQ:DLTR traded down $0.2590 during mid-day trading on Tuesday, hitting $111.8010. The stock had a trading volume of 707,395 shares, compared to its average volume of 4,109,991. The company has a current ratio of 1.04, a quick ratio of 0.72 and a debt-to-equity ratio of 0.62. The company has a 50 day simple moving average of $107.06 and a 200-day simple moving average of $87.74. The stock has a market capitalization of $23.33 billion, a price-to-earnings ratio of -8.07, a P/E/G ratio of 2.43 and a beta of 0.88. Dollar Tree, Inc. has a 52 week low of $60.49 and a 52 week 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, beating the consensus estimate of $1.21 by $0.05. The firm had revenue of $4.64 billion for the quarter, compared to the consensus estimate of $4.52 billion. Dollar Tree had a positive return on equity of 19.36% and a negative net margin of 12.15%.The firm's revenue for the quarter was up 11.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.43 EPS. Dollar Tree has set its FY 2025 guidance at 5.150-5.650 EPS. On average, research analysts expect that Dollar Tree, Inc. will post 5.39 earnings per share for the current fiscal year.

Dollar Tree announced that its board has initiated a stock repurchase program on Wednesday, July 9th that authorizes the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization authorizes the company to purchase up to 11.5% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Insider Activity at Dollar Tree

In related news, CMO Richard L. Mcneely sold 21,026 shares of the firm's stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $94.62, for a total value of $1,989,480.12. Following the transaction, the chief marketing officer directly 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 6.60% of the company's stock.

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.