Kettle Hill Capital Management LLC Has $13.51 Million Stock Holdings in Dollar Tree, Inc. $DLTR

Key Points

• Kettle Hill Capital Management LLC increased its ownership in Dollar Tree, Inc. by 38.4%, purchasing 49,876 shares and now holding a total of 179,895 shares.
• Dollar Tree reported a 12.3% increase in revenue year-over-year, with earnings per share of $0.77, surpassing analysts' expectations.
• The company's board approved a $2.50 billion stock repurchase program, indicating confidence in the stock's valuation and allowing for buybacks of up to 11.5% of its shares.

Kettle Hill Capital Management LLC grew its stake in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 38.4% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 179,895 shares of the company's stock after purchasing an additional 49,876 shares during the period. Dollar Tree comprises about 3.7% of Kettle Hill Capital Management LLC's investment portfolio, making the stock its 9th biggest position. Kettle Hill Capital Management LLC owned about 0.08% of Dollar Tree worth $13,505,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently bought and sold shares of DLTR. Vanguard Group Inc. boosted its position in shares of Dollar Tree by 1.7% during the 1st quarter. Vanguard Group Inc. now owns 23,839,718 shares of the company's stock valued at $1,789,648,000 after acquiring an additional 389,490 shares in the last quarter. T. Rowe Price Investment Management Inc. lifted its position in shares of Dollar Tree by 0.7% during the first quarter. T. Rowe Price Investment Management Inc. now owns 9,994,978 shares of the company's stock worth $750,323,000 after purchasing an additional 74,230 shares in the last quarter. EdgePoint Investment Group Inc. lifted its position in shares of Dollar Tree by 21.4% during the first quarter. EdgePoint Investment Group Inc. now owns 9,641,507 shares of the company's stock worth $723,788,000 after purchasing an additional 1,701,344 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in Dollar Tree by 69.6% in the first quarter. Price T Rowe Associates Inc. MD now owns 5,848,196 shares of the company's stock valued at $439,025,000 after buying an additional 2,400,586 shares during the period. Finally, Invesco Ltd. grew its holdings in Dollar Tree by 8.8% during the 1st quarter. Invesco Ltd. now owns 3,529,998 shares of the company's stock worth $264,997,000 after acquiring an additional 286,910 shares during the period. 97.40% of the stock is currently owned by institutional investors and hedge funds.

Dollar Tree Stock Performance

Shares of NASDAQ:DLTR traded down $3.10 during midday trading on Tuesday, reaching $96.30. The company had a trading volume of 7,783,311 shares, compared to its average volume of 4,223,800. The company's 50 day moving average price is $110.42 and its 200 day moving average price is $91.46. The company has a current ratio of 1.04, a quick ratio of 0.27 and a debt-to-equity ratio of 0.67. The stock has a market cap of $19.64 billion, a P/E ratio of -7.10, a P/E/G ratio of 1.84 and a beta of 0.89. Dollar Tree, Inc. has a 52-week low of $60.49 and a 52-week high of $118.06.

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

Dollar Tree declared that its board has initiated a share repurchase program on Wednesday, July 9th that permits the company to repurchase $2.50 billion in shares. This repurchase authorization permits the company to reacquire up to 11.5% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's management believes its shares are undervalued.

Analysts Set New Price Targets

DLTR has been the topic of several analyst reports. Morgan Stanley increased their target price on Dollar Tree from $96.00 to $105.00 and gave the company an "equal weight" rating in a research note on Friday. Wells Fargo & Company reaffirmed an "overweight" rating on shares of Dollar Tree in a research note on Wednesday, September 3rd. Guggenheim cut their price objective on shares of Dollar Tree from $130.00 to $125.00 and set a "buy" rating on the stock in a research report on Monday. UBS Group reissued a "buy" rating and issued a $140.00 price objective on shares of Dollar Tree in a research report on Tuesday, August 26th. Finally, The Goldman Sachs Group lowered shares of Dollar Tree from a "strong-buy" rating to a "strong sell" rating in a research report on Thursday, June 5th. Eight research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, Dollar Tree presently has a consensus rating of "Hold" and an average price target of $108.26.

Insider Buying and Selling at Dollar Tree

In related news, Director Stephanie Stahl sold 1,185 shares of the firm's stock in a transaction on Friday, September 5th. The stock was sold at an average price of $100.32, for a total value of $118,879.20. Following the completion of the sale, the director owned 4,089 shares of the company's stock, valued at $410,208.48. This trade represents a 22.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 6.60% of the company's stock.

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.