Jacobs Levy Equity Management Inc. Makes New $846,000 Investment in Dollar Tree, Inc. $DLTR

Key Points

• Jacobs Levy Equity Management Inc. has made a new investment of approximately $846,000 in Dollar Tree, acquiring 11,275 shares during the first quarter.
• Dollar Tree recently reported better-than-expected earnings, with an EPS of $0.77, surpassing the consensus estimate of $0.38 and a revenue of $4.57 billion for the quarter.
• The company has initiated a $2.50 billion stock buyback program, which allows for the repurchase of up to 11.5% of its outstanding shares, indicating the board's belief that the stock is undervalued.

Jacobs Levy Equity Management Inc. purchased a new position in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm purchased 11,275 shares of the company's stock, valued at approximately $846,000.

A number of other large investors also recently bought and sold shares of the stock. Horizon Investments LLC raised its stake in Dollar Tree by 5.1% during the first quarter. Horizon Investments LLC now owns 2,905 shares of the company's stock worth $218,000 after purchasing an additional 140 shares during the period. Brooklyn Investment Group raised its stake in Dollar Tree by 79.0% during the first quarter. Brooklyn Investment Group now owns 358 shares of the company's stock worth $27,000 after purchasing an additional 158 shares during the period. Private Trust Co. NA raised its stake in Dollar Tree by 11.6% during the first quarter. Private Trust Co. NA now owns 1,527 shares of the company's stock worth $115,000 after purchasing an additional 159 shares during the period. Cary Street Partners Financial LLC raised its stake in Dollar Tree by 8.5% during the first quarter. Cary Street Partners Financial LLC now owns 2,381 shares of the company's stock worth $179,000 after purchasing an additional 186 shares during the period. Finally, Amalgamated Bank raised its stake in Dollar Tree by 0.7% during 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 during the period. Hedge funds and other institutional investors own 97.40% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on DLTR shares. Wells Fargo & Company reissued an "overweight" rating on shares of Dollar Tree in a research note on Wednesday, September 3rd. UBS Group reissued a "buy" rating and issued a $140.00 target price on shares of Dollar Tree in a research note on Tuesday, August 26th. Barclays raised shares of Dollar Tree from an "equal weight" rating to an "overweight" rating and raised their target price for the company from $95.00 to $138.00 in a research note on Monday, July 21st. The Goldman Sachs Group lowered Dollar Tree from a "strong-buy" rating to a "strong sell" rating in a research note on Thursday, June 5th. Finally, Telsey Advisory Group reiterated an "outperform" rating and issued a $130.00 target price on shares of Dollar Tree in a research note on Thursday, September 4th. Eight analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $109.28.

Insider Transactions at Dollar Tree

In related news, Director Stephanie Stahl sold 1,185 shares of Dollar Tree stock in a transaction on Friday, September 5th. The shares were sold at an average price of $100.32, for a total transaction of $118,879.20. Following the sale, the director owned 4,089 shares of the company's stock, valued at $410,208.48. The trade was a 22.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 6.60% of the stock is owned by company insiders.

Dollar Tree Stock Performance

Dollar Tree stock opened at $97.45 on Friday. Dollar Tree, Inc. has a 12-month low of $60.49 and a 12-month high of $118.06. The company has a market capitalization of $19.88 billion, a price-to-earnings ratio of -7.18, a price-to-earnings-growth ratio of 1.81 and a beta of 0.89. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.04 and a quick ratio of 0.27. The firm's fifty day moving average price is $110.10 and its 200 day moving average price is $91.85.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last released its quarterly earnings results on Wednesday, September 3rd. The company reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.38 by $0.39. Dollar Tree had a negative net margin of 13.46% and a positive return on equity of 23.52%. The firm had revenue of $4.57 billion for the quarter, compared to the consensus estimate of $4.46 billion. During the same quarter in the previous year, the firm posted $0.67 EPS. The firm's quarterly revenue was up 12.3% on a year-over-year basis. Dollar Tree has set its FY 2025 guidance at 5.320-5.720 EPS. On average, research analysts forecast that Dollar Tree, Inc. will post 5.39 EPS for the current fiscal year.

Dollar Tree announced that its board has initiated a stock buyback program on Wednesday, July 9th that permits the company to buyback $2.50 billion in outstanding shares. This buyback authorization permits the company to buy up to 11.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board of directors believes its stock is undervalued.

Dollar Tree 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.

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