Empire Life Investments Inc. Makes New Investment in Dollar Tree, Inc. (NASDAQ:DLTR)

Key Points

• Empire Life Investments Inc. invested approximately $6.45 million in Dollar Tree by acquiring 85,943 shares during the first quarter of 2024.
• Analysts have mixed opinions on Dollar Tree, with price targets ranging from $70.00 to $108.00, reflecting a consensus rating of "Hold" and an average target of around $97.74.
• The company recently initiated a $2.50 billion share buyback program, indicating management's belief that the stock is undervalued, allowing for the repurchase of up to 11.5% of its shares.

Empire Life Investments Inc. purchased a new position in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 85,943 shares of the company's stock, valued at approximately $6,452,000.

A number of other hedge funds have also bought and sold shares of DLTR. Private Trust Co. NA raised its holdings in shares of Dollar Tree by 11.6% during the 1st quarter. Private Trust Co. NA now owns 1,527 shares of the company's stock valued at $115,000 after purchasing an additional 159 shares in the last quarter. Amalgamated Bank boosted its holdings in Dollar Tree by 0.7% in the first quarter. Amalgamated Bank now owns 39,283 shares of the company's stock worth $2,949,000 after purchasing an additional 265 shares in the last quarter. Mercer Global Advisors Inc. ADV increased its position in Dollar Tree by 6.7% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 4,656 shares of the company's stock worth $349,000 after buying an additional 292 shares during the last quarter. Wahed Invest LLC raised its holdings in Dollar Tree by 6.1% during the fourth quarter. Wahed Invest LLC now owns 5,205 shares of the company's stock valued at $390,000 after buying an additional 297 shares in the last quarter. Finally, Kera Capital Partners Inc. lifted its position in shares of Dollar Tree by 10.5% in the first quarter. Kera Capital Partners Inc. now owns 3,352 shares of the company's stock worth $252,000 after buying an additional 318 shares during the last quarter. 97.40% of the stock is currently owned by institutional investors and hedge funds.

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 transaction of $1,989,480.12. Following the completion of the transaction, the chief marketing officer owned 50,419 shares in the company, valued at $4,770,645.78. This trade represents a 29.43% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 6.60% of the stock is owned by company insiders.

Dollar Tree Stock Performance

DLTR traded up $0.79 during trading on Thursday, reaching $117.16. 2,303,968 shares of the company's stock were exchanged, compared to its average volume of 4,180,833. Dollar Tree, Inc. has a fifty-two week low of $60.49 and a fifty-two week high of $117.80. The company has a quick ratio of 0.72, a current ratio of 1.04 and a debt-to-equity ratio of 0.62. The business has a 50 day moving average price of $103.58 and a 200 day moving average price of $85.26. The company has a market capitalization of $24.45 billion, a P/E ratio of -8.45, a PEG ratio of 2.48 and a beta of 0.88.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its quarterly earnings results on Wednesday, June 4th. The company reported $1.26 earnings per share for the quarter, topping 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 firm had revenue of $4.64 billion for the quarter, compared to the consensus estimate of $4.52 billion. During the same quarter in the previous year, the company earned $1.43 earnings per share. The business's revenue was up 11.3% compared to the same quarter last year. As a group, analysts predict that Dollar Tree, Inc. will post 5.39 earnings per share for the current fiscal year.

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

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the company. Morgan Stanley upped their price target on Dollar Tree from $80.00 to $96.00 and gave the stock an "equal weight" rating in a research note on Thursday, June 5th. Cfra Research raised Dollar Tree to a "hold" rating in a report on Wednesday, May 28th. JPMorgan Chase & Co. increased their price objective on Dollar Tree from $111.00 to $138.00 and gave the company an "overweight" rating in a report on Monday, July 21st. Barclays raised Dollar Tree from an "equal weight" rating to an "overweight" rating and increased their price objective for the company from $95.00 to $138.00 in a report on Monday, July 21st. Finally, Sanford C. Bernstein set a $82.00 price objective on Dollar Tree and gave the company a "market perform" rating in a report on Monday, May 5th. Two research analysts have rated the stock with a sell rating, thirteen have given a hold rating and seven have issued a buy rating to the company's stock. Based on data from MarketBeat, Dollar Tree presently has a consensus rating of "Hold" and an average price target of $97.74.

Dollar Tree Company 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.