Lecap Asset Management Ltd. Makes New $689,000 Investment in Dollar Tree, Inc. $DLTR

Key Points

• Lecap Asset Management Ltd. made a new investment in Dollar Tree, Inc., purchasing 6,960 shares valued at approximately $689,000.
• Dollar Tree's recent earnings report showed a significant 12.3% year-over-year revenue growth with EPS of $0.77, exceeding analysts' expectations of $0.38.
• The company has initiated a $2.50 billion stock repurchase plan, indicating management's belief that its shares are currently undervalued.

Lecap Asset Management Ltd. bought a new position in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 6,960 shares of the company's stock, valued at approximately $689,000.

Several other institutional investors and hedge funds also recently modified their holdings of DLTR. TD Private Client Wealth LLC increased its stake in shares of Dollar Tree by 164.0% during the 2nd quarter. TD Private Client Wealth LLC now owns 264 shares of the company's stock worth $26,000 after purchasing an additional 164 shares in the last quarter. Brooklyn Investment Group grew its holdings in Dollar Tree by 79.0% during the 1st quarter. Brooklyn Investment Group now owns 358 shares of the company's stock valued at $27,000 after buying an additional 158 shares during the last quarter. Zions Bancorporation National Association UT purchased a new position in Dollar Tree during the first quarter worth $30,000. CX Institutional acquired a new position in shares of Dollar Tree in the first quarter worth $43,000. Finally, Sentry Investment Management LLC purchased a new stake in shares of Dollar Tree in the first quarter valued at $48,000. Hedge funds and other institutional investors own 97.40% of the company's stock.

Dollar Tree Stock Performance

Shares of NASDAQ:DLTR opened at $90.24 on Friday. The business has a 50-day moving average of $106.10 and a two-hundred day moving average of $94.42. The firm has a market capitalization of $18.41 billion, a PE ratio of -6.65, a P/E/G ratio of 1.64 and a beta of 0.85. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.04 and a quick ratio of 0.27. Dollar Tree, Inc. has a 12 month low of $60.49 and a 12 month high of $118.06.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last issued its earnings results on Wednesday, September 3rd. The company reported $0.77 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.38 by $0.39. Dollar Tree had a positive return on equity of 23.52% and a negative net margin of 13.46%.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 previous year, the business earned $0.67 EPS. The company's revenue for the quarter 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, research analysts forecast that Dollar Tree, Inc. will post 5.39 earnings per share for the current year.

Dollar Tree announced that its Board of Directors 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 repurchase up to 11.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's management believes its shares are undervalued.

Insider Activity at Dollar Tree

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

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on DLTR. Wells Fargo & Company reissued an "overweight" rating on shares of Dollar Tree in a research note on Wednesday, September 3rd. JPMorgan Chase & Co. lifted their price target on shares of Dollar Tree from $138.00 to $140.00 and gave the stock an "overweight" rating in a report on Thursday, September 4th. Telsey Advisory Group reissued an "outperform" rating and issued a $130.00 price objective on shares of Dollar Tree in a research report on Thursday, September 4th. Jefferies Financial Group assumed coverage on shares of Dollar Tree in a research report on Thursday, July 17th. They set a "hold" rating and a $106.00 target price on the stock. Finally, Truist Financial lifted their target price on shares of Dollar Tree from $127.00 to $129.00 and gave the stock a "buy" rating in a research note on Wednesday, September 3rd. Eight equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $111.29.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.