Federated Hermes Inc. Increases Stock Position in Dollar Tree, Inc. (NASDAQ:DLTR)

Key Points

• Federated Hermes Inc. significantly increased its stake in Dollar Tree, acquiring over 729,000 shares, bringing its total ownership to approximately 743,000 shares, valued at nearly $56 million.
• Dollar Tree's recent quarterly earnings surpassed expectations, reporting $1.26 EPA and revenues of $4.64 billion, an 11.3% increase from the previous year.
• The company has authorized a $2.5 billion share buyback plan, indicating confidence in its stock value and future growth prospects.

Federated Hermes Inc. lifted its position in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 5,400.7% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 742,876 shares of the company's stock after buying an additional 729,371 shares during the period. Federated Hermes Inc. owned approximately 0.35% of Dollar Tree worth $55,768,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also made changes to their positions in DLTR. Intrepid Capital Management Inc. increased its holdings in Dollar Tree by 103.6% in the 4th quarter. Intrepid Capital Management Inc. now owns 27,026 shares of the company's stock valued at $2,025,000 after purchasing an additional 13,751 shares during the last quarter. Forum Financial Management LP acquired a new stake in Dollar Tree in the 4th quarter valued at approximately $340,000. Wealth Enhancement Advisory Services LLC boosted its position in Dollar Tree by 50.7% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 13,724 shares of the company's stock valued at $1,030,000 after buying an additional 4,619 shares during the period. McGinn Penninger Investment Management Inc. boosted 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 buying an additional 8,015 shares during the period. Finally, Bastion Asset Management Inc. purchased a new position in Dollar Tree in the 1st quarter valued at approximately $3,585,000. Institutional investors and hedge funds own 97.40% of the company's stock.

Dollar Tree Stock Performance

NASDAQ DLTR traded up $1.17 during trading on Friday, reaching $114.72. The company's stock had a trading volume of 3,154,117 shares, compared to its average volume of 3,065,441. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.72 and a current ratio of 1.04. The firm has a market cap of $23.94 billion, a price-to-earnings ratio of -8.28, a P/E/G ratio of 2.46 and a beta of 0.88. Dollar Tree, Inc. has a twelve month low of $60.49 and a twelve month high of $115.99. The business's fifty day moving average price is $101.98 and its 200-day moving average price is $84.33.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its quarterly earnings data on Wednesday, June 4th. The company reported $1.26 EPS for the quarter, beating analysts' consensus estimates of $1.21 by $0.05. Dollar Tree had a negative net margin of 12.15% and a positive return on equity of 19.36%. The company had revenue of $4.64 billion for the quarter, compared to analyst estimates of $4.52 billion. During the same period in the previous year, the business posted $1.43 earnings per share. Dollar Tree's quarterly revenue was up 11.3% on a year-over-year basis. As a group, analysts anticipate that Dollar Tree, Inc. will post 5.39 EPS for the current fiscal year.

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

Insider Activity

In other news, CMO Richard L. Mcneely sold 21,026 shares of the business's stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $94.62, for a total transaction of $1,989,480.12. Following the transaction, the chief marketing officer directly owned 50,419 shares in the company, valued at $4,770,645.78. The trade was a 29.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 6.60% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on DLTR shares. Jefferies Financial Group started coverage on shares of Dollar Tree in a research report on Thursday, July 17th. They issued a "hold" rating and a $106.00 price target for the company. UBS Group raised their price target on shares of Dollar Tree from $95.00 to $108.00 and gave the company a "buy" rating in a research report on Thursday, May 29th. Cfra Research raised shares of Dollar Tree to a "hold" rating in a research report on Wednesday, May 28th. Piper Sandler raised their price target on shares of Dollar Tree from $72.00 to $93.00 and gave the company a "neutral" rating in a research report on Thursday, June 5th. Finally, Evercore ISI lifted their price objective on shares of Dollar Tree from $92.00 to $94.00 and gave the stock an "in-line" rating in a research report on Tuesday, June 24th. Two investment analysts have rated the stock with a sell rating, thirteen have given a hold rating and seven have given a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $97.74.

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.