EntryPoint Capital LLC Makes New Investment in Dollar Tree, Inc. $DLTR

Key Points

• EntryPoint Capital LLC invested $582,000 in Dollar Tree by acquiring 7,755 shares during the first quarter, showcasing increased institutional interest in the company.
• Dollar Tree's stock buyback plan of $2.50 billion aims to repurchase up to 11.5% of its stock, indicating the board's belief in the company's undervaluation.
• The company's last earnings report showed an EPS of $1.26, exceeding expectations, with a revenue increase of 11.3% year-over-year.

EntryPoint Capital LLC bought a new stake in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 7,755 shares of the company's stock, valued at approximately $582,000.

Other large investors also recently added to or reduced their stakes in the company. Brooklyn Investment Group grew its stake in shares of Dollar Tree by 79.0% in the first quarter. Brooklyn Investment Group now owns 358 shares of the company's stock valued at $27,000 after buying an additional 158 shares in the last quarter. Zions Bancorporation National Association UT acquired a new position in Dollar Tree in the 1st quarter valued at about $30,000. CX Institutional purchased a new stake in Dollar Tree during the first quarter worth about $43,000. Sentry Investment Management LLC acquired a new stake in shares of Dollar Tree during the first quarter worth about $48,000. Finally, GeoWealth Management LLC purchased a new position in shares of Dollar Tree in the fourth quarter valued at approximately $61,000. 97.40% of the stock is currently owned by institutional investors and hedge funds.

Dollar Tree Stock Down 0.6%

Shares of NASDAQ:DLTR traded down $0.7010 on Monday, hitting $112.6190. 541,076 shares of the company's stock were exchanged, compared to its average volume of 4,078,003. Dollar Tree, Inc. has a 1-year low of $60.49 and a 1-year high of $118.06. The company has a market capitalization of $23.50 billion, a PE ratio of -8.12, a P/E/G ratio of 2.42 and a beta of 0.88. 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's 50-day moving average is $108.53 and its 200 day moving average is $88.84.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its earnings results on Wednesday, June 4th. The company reported $1.26 earnings per share for the quarter, topping the consensus estimate of $1.21 by $0.05. The firm had revenue of $4.64 billion during the quarter, compared to analysts' expectations 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 was up 11.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.43 earnings per share. Dollar Tree has set its FY 2025 guidance at 5.150-5.650 EPS. Sell-side analysts predict that Dollar Tree, Inc. will post 5.39 EPS for the current year.

Dollar Tree declared that its Board of Directors has initiated a stock 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 reacquire up to 11.5% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board believes its stock is undervalued.

Insider Activity

In related news, CMO Richard L. Mcneely sold 21,026 shares of Dollar Tree stock in a transaction on 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 sale, the chief marketing officer directly owned 50,419 shares in the company, valued at $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 available through the SEC website. Insiders own 6.60% of the company's stock.

Wall Street Analysts Forecast Growth

DLTR has been the topic of several recent research reports. Telsey Advisory Group reaffirmed a "market perform" rating and set a $95.00 target price on shares of Dollar Tree in a research note on Wednesday, June 4th. Barclays upgraded shares of Dollar Tree from an "equal weight" rating to an "overweight" rating and boosted their price target for the stock from $95.00 to $138.00 in a research note on Monday, July 21st. Jefferies Financial Group started coverage on Dollar Tree in a research note on Thursday, July 17th. They issued a "hold" rating and a $106.00 price objective on the stock. BMO Capital Markets lifted their target price on Dollar Tree from $80.00 to $85.00 and gave the company a "market perform" rating in a report on Thursday, June 5th. Finally, 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 report on Thursday, June 5th. Seven research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $100.89.

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.