678,151 Shares in Dollar Tree, Inc. $DLTR Acquired by Junto Capital Management LP

Key Points

• Junto Capital Management LP acquired a new position in Dollar Tree, purchasing 678,151 shares valued at approximately $50.9 million during the 1st quarter.
• Dollar Tree announced a $2.5 billion share buyback program, allowing it to repurchase up to 11.5% of its shares, indicating the board's belief that the stock is undervalued.
• The company's quarterly earnings showed a positive performance, with an EPS of $1.26, surpassing analysts' estimates by $0.05 and a year-over-year revenue increase of 11.3%.

Junto Capital Management LP acquired a new stake in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 678,151 shares of the company's stock, valued at approximately $50,909,000. Junto Capital Management LP owned approximately 0.32% of Dollar Tree at the end of the most recent quarter.

Other large investors have also bought and sold shares of the company. Vident Advisory LLC increased its stake in shares of Dollar Tree by 134.0% during the first quarter. Vident Advisory LLC now owns 9,302 shares of the company's stock valued at $698,000 after buying an additional 5,327 shares during the period. Magnetar Financial LLC purchased a new position in shares of Dollar Tree during the first quarter valued at approximately $212,000. State of Wyoming increased its stake in shares of Dollar Tree by 53.7% during the first quarter. State of Wyoming now owns 6,489 shares of the company's stock valued at $487,000 after buying an additional 2,268 shares during the period. Oarsman Capital Inc. increased its stake in shares of Dollar Tree by 10.8% during the first quarter. Oarsman Capital Inc. now owns 2,813 shares of the company's stock valued at $211,000 after buying an additional 275 shares during the period. Finally, BNP Paribas Financial Markets increased its stake in shares of Dollar Tree by 31.0% during the first quarter. BNP Paribas Financial Markets now owns 718,529 shares of the company's stock valued at $53,940,000 after buying an additional 169,950 shares during the period. 97.40% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on DLTR shares. Telsey Advisory Group raised Dollar Tree from a "market perform" rating to an "outperform" rating and boosted their target price for the company from $100.00 to $130.00 in a research note on Friday, August 29th. The Goldman Sachs Group downgraded Dollar Tree from a "strong-buy" rating to a "strong sell" rating in a report on Thursday, June 5th. Piper Sandler upped their price target on Dollar Tree from $93.00 to $112.00 and gave the company a "neutral" rating in a report on Tuesday, August 19th. Barclays raised Dollar Tree from an "equal weight" rating to an "overweight" rating and upped their price target for the company from $95.00 to $138.00 in a report on Monday, July 21st. Finally, JPMorgan Chase & Co. upped their price target on Dollar Tree from $111.00 to $138.00 and gave the company an "overweight" rating in a report on Monday, July 21st. Eight analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, Dollar Tree currently has an average rating of "Hold" and a consensus price target of $104.15.

Insider Activity

In related news, CMO Richard L. Mcneely sold 21,026 shares of the 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 directly owned 50,419 shares of the company's stock, valued at approximately $4,770,645.78. This represents a 29.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 6.60% of the company's stock.

Dollar Tree Stock Performance

DLTR traded down $9.32 during midday trading on Wednesday, reaching $102.03. The company had a trading volume of 15,737,459 shares, compared to its average volume of 4,152,059. 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 of $110.30 and a two-hundred day moving average of $90.61. The company has a market cap of $21.29 billion, a P/E ratio of -7.36, a P/E/G ratio of 2.32 and a beta of 0.89. Dollar Tree, Inc. has a 1 year low of $60.49 and a 1 year high of $118.06.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last issued its quarterly earnings results on Wednesday, September 3rd. The company reported $0.77 EPS for the quarter, topping analysts' consensus estimates of $0.38 by $0.39. Dollar Tree had a positive return on equity of 19.36% and a negative net margin of 12.15%.The business had revenue of $4.57 billion during the quarter, compared to analysts' expectations of $4.46 billion. During the same quarter in the prior year, the business posted $0.67 earnings per share. The business'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. As a group, equities research analysts predict that Dollar Tree, Inc. will post 5.39 earnings per share for the current fiscal year.

Dollar Tree announced that its board has initiated a stock repurchase plan on Wednesday, July 9th that authorizes the company to repurchase $2.50 billion in shares. This repurchase authorization authorizes the company to purchase up to 11.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its shares are undervalued.

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.