Empowered Funds LLC Acquires Shares of 61,577 Dollar Tree, Inc. $DLTR

Key Points

• Empowered Funds LLC acquired 61,577 Dollar Tree shares in the second quarter, worth approximately $7.1 million. Institutional investors and hedge funds now own 97.4% of the company.
• Dollar Tree reported a strong second quarter, with revenue rising 7% to $4.89 billion and adjusted EPS of $2.70 versus the $1.15 consensus estimate. Comparable-store sales increased 3.7%, and management raised full-year fiscal 2026 adjusted EPS guidance to $7.70–$8.05.
• Despite the upbeat quarter, third-quarter adjusted EPS guidance of $0.80–$0.95 fell well below analyst expectations of roughly $1.40, reflecting pressure from fuel costs, tariffs and reinvestment spending. Analysts maintain a consensus “Hold” rating with an average price target of $129.18.

Empowered Funds LLC acquired a new position in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 61,577 shares of the company's stock, valued at approximately $7,088,000.

Other institutional investors have also recently modified their holdings of the company. BlackRock Inc. acquired a new position in Dollar Tree in the 2nd quarter worth about $2,643,741,000. Pzena Investment Management LLC acquired a new stake in Dollar Tree in the second quarter valued at approximately $1,176,661,000. Primecap Management Co. CA purchased a new stake in shares of Dollar Tree in the second quarter valued at approximately $455,845,000. Bank of America Corp DE purchased a new stake in shares of Dollar Tree in the second quarter valued at approximately $385,350,000. Finally, Alliancebernstein L.P. raised its stake in shares of Dollar Tree by 176.9% during the 2nd quarter. Alliancebernstein L.P. now owns 3,746,222 shares of the company's stock worth $371,026,000 after buying an additional 2,393,172 shares during the period. 97.40% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on DLTR shares. Sanford C. Bernstein reissued a "market perform" rating and issued a $130.00 price target on shares of Dollar Tree in a research note on Friday. Gordon Haskett upgraded shares of Dollar Tree from a "reduce" rating to a "hold" rating and set a $115.00 price objective for the company in a research report on Thursday, June 4th. Guggenheim increased their price objective on shares of Dollar Tree from $135.00 to $145.00 and gave the company a "buy" rating in a report on Tuesday, August 25th. Benchmark started coverage on shares of Dollar Tree in a research report on Wednesday, July 8th. They issued a "hold" rating on the stock. Finally, Morgan Stanley boosted their target price on shares of Dollar Tree from $130.00 to $145.00 and gave the stock an "equal weight" rating in a research note on Friday. Ten research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $129.18.

Dollar Tree News Summary

Here are the key news stories impacting Dollar Tree this week:

• Positive Sentiment: Dollar Tree reported second-quarter revenue of $4.89 billion, up 7% year over year and above estimates of approximately $4.86 billion. Adjusted earnings per share reached $2.70, substantially exceeding the $1.15 consensus, helped by higher markups, lower freight costs, reduced shrinkage and tariff-related refunds. Dollar Tree beats quarterly revenue estimates on steady demand
• Positive Sentiment: Comparable-store sales rose 3.7%, driven by a 3.3% increase in average ticket and positive customer traffic of 0.4%. Management also cited improving assortments and continued demand for affordable essentials. Dollar Tree Q2 earnings call highlights
• Positive Sentiment: Management raised full-year fiscal 2026 adjusted EPS guidance to $7.70–$8.05 from $6.70–$7.10. Dollar Tree also repurchased approximately 5.6 million shares for $605 million during the quarter, supporting per-share results. Dollar Tree lifts earnings outlook
• Neutral Sentiment: Dollar Tree is attracting more middle- and high-income shoppers seeking value, while lower-income customers remain pressured by the cost of necessities. This broadens the customer base but also highlights uneven consumer health. Dollar Tree attracts higher-income customers
• Negative Sentiment: Third-quarter adjusted EPS guidance of $0.80–$0.95 was well below the roughly $1.40 analyst expectation. Investors viewed the outlook as evidence that fuel costs, tariffs and reinvestment expenses could pressure profitability, overshadowing the second-quarter beat and the higher full-year forecast. Dollar Tree cites higher fuel prices as a headwind

Dollar Tree Stock Performance

Shares of DLTR stock opened at $128.26 on Monday. The stock's fifty day moving average is $126.03 and its two-hundred day moving average is $114.71. The company has a debt-to-equity ratio of 0.86, a quick ratio of 0.39 and a current ratio of 1.13. The firm has a market capitalization of $24.07 billion, a P/E ratio of 15.66, a PEG ratio of 1.32 and a beta of 0.64. Dollar Tree, Inc. has a fifty-two week low of $84.71 and a fifty-two week high of $142.40.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last announced its earnings results on Thursday, August 27th. The company reported $2.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.15 by $1.55. The company had revenue of $4.89 billion for the quarter, compared to analysts' expectations of $4.86 billion. Dollar Tree had a net margin of 8.03% and a return on equity of 38.61%. The firm's quarterly revenue was up 7.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $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. Research analysts expect that Dollar Tree, Inc. will post 7.13 earnings per share for the current fiscal year.

Dollar Tree declared that its board has authorized a share buyback program on Thursday, July 2nd that allows the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization allows the company to purchase up to 10.7% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Dollar Tree Company Profile

Dollar Tree, Inc is a North American discount retailer that operates a portfolio of value-oriented store banners, primarily Dollar Tree and Family Dollar. The company's stores offer a broad assortment of everyday items at low price points, including household essentials, food and snacks, health and beauty products, cleaning supplies, seasonal and party goods, home décor, and basic apparel. Dollar Tree's merchandising strategy emphasizes high-turnover branded and private-label merchandise tailored to budget-conscious consumers, with Family Dollar complementing the chain by offering a wider range of price points and assortment depth in smaller-format neighborhood locations.

Founded in 1986 and headquartered in Chesapeake, Virginia, Dollar Tree has grown through both organic store openings and acquisitions.

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