Invesco Ltd. Buys 286,910 Shares of Dollar Tree, Inc. (NASDAQ:DLTR)

Key Points

• Invesco Ltd. increased its stake in Dollar Tree, Inc. by 8.8%, owning approximately 3,530,000 shares valued at around $265 million by the end of the recent quarter.
• Several analysts have lifted their price targets for Dollar Tree, with UBS Group raising it to $108.00, while Goldman Sachs downgraded the stock to a "strong sell".
• The company announced a significant share repurchase plan valued at $2.5 billion, indicating confidence from the board in the company's valuation.

Invesco Ltd. increased its position in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 8.8% during the first quarter, according to its most recent Form 13F filing with the SEC. The fund owned 3,529,998 shares of the company's stock after buying an additional 286,910 shares during the period. Invesco Ltd. owned 1.64% of Dollar Tree worth $264,997,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Bessemer Group Inc. boosted its position in shares of Dollar Tree by 34,600.0% in the fourth quarter. Bessemer Group Inc. now owns 347 shares of the company's stock valued at $26,000 after acquiring an additional 346 shares during the period. Zions Bancorporation National Association UT bought a new position in Dollar Tree in the first quarter worth $30,000. CX Institutional bought a new position in Dollar Tree in the first quarter worth $43,000. Sentry Investment Management LLC bought a new position in Dollar Tree in the first quarter worth $48,000. Finally, GeoWealth Management LLC bought a new position in Dollar Tree in the fourth quarter worth $61,000. Institutional investors and hedge funds own 97.40% of the company's stock.

Dollar Tree Stock Down 0.7%

Shares of Dollar Tree stock traded down $0.77 on Thursday, reaching $114.63. 3,658,557 shares of the company were exchanged, compared to its average volume of 3,137,621. Dollar Tree, Inc. has a one year low of $60.49 and a one year high of $118.06. The company has a market capitalization of $23.92 billion, a price-to-earnings ratio of -8.27, a PEG ratio of 2.47 and a beta of 0.88. 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 moving average of $106.32 and a 200 day moving average of $87.02.

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

Dollar Tree declared that its board has approved a stock buyback plan on Wednesday, July 9th that allows the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization allows the company to repurchase up to 11.5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Insiders Place Their Bets

In related news, CMO Richard L. Mcneely sold 21,026 shares of the company's stock in a transaction dated Friday, June 6th. The shares were 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 in the company, valued at approximately $4,770,645.78. This represents a 29.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 6.60% of the company's stock.

Analysts Set New Price Targets

Several research analysts recently commented on DLTR shares. BMO Capital Markets raised their target price 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. Wells Fargo & Company lifted their price objective on Dollar Tree from $105.00 to $130.00 and gave the company an "overweight" rating in a report on Tuesday, July 22nd. Piper Sandler lifted their price objective on Dollar Tree from $72.00 to $93.00 and gave the company a "neutral" rating in a report on Thursday, June 5th. Cfra Research raised Dollar Tree to a "hold" rating in a report on Wednesday, May 28th. Finally, Telsey Advisory Group restated a "market perform" rating and issued a $95.00 target price on shares of Dollar Tree in a research note on Wednesday, June 4th. Two research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and seven have given a buy rating to the stock. Based on data from MarketBeat.com, Dollar Tree has an average rating of "Hold" and an average price target of $99.89.

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.