Louisbourg Investments Inc. Reduces Stock Position in Dollar Tree, Inc. $DLTR

Key Points

• Louisbourg Investments Inc. has reduced its stake in Dollar Tree, Inc. by 8.1%, holding 45,160 shares worth approximately $4.47 million after selling 3,970 shares in the second quarter.
• Dollar Tree's quarterly earnings exceeded expectations, with an EPS of $0.77 versus analysts' estimates of $0.38, alongside a year-over-year revenue increase of 12.3%.
• Dollar Tree has initiated a $2.50 billion share buyback program, indicating the board's belief that its stock is currently undervalued.

Louisbourg Investments Inc. cut its holdings in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 8.1% during the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 45,160 shares of the company's stock after selling 3,970 shares during the quarter. Louisbourg Investments Inc.'s holdings in Dollar Tree were worth $4,473,000 at the end of the most recent quarter.

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

Dollar Tree Trading Down 1.6%

Shares of DLTR stock opened at $87.61 on Friday. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.27 and a current ratio of 1.04. Dollar Tree, Inc. has a 1 year low of $60.49 and a 1 year high of $118.06. The stock has a fifty day moving average of $102.90 and a two-hundred day moving average of $95.31. The firm has a market capitalization of $17.87 billion, a PE ratio of -6.46, a price-to-earnings-growth ratio of 1.62 and a beta of 0.85.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last announced its quarterly 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 company had revenue of $4.57 billion during the quarter, compared to analyst estimates 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. As a group, research analysts expect that Dollar Tree, Inc. will post 5.39 EPS for the current year.

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

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on DLTR shares. Morgan Stanley boosted their price target on Dollar Tree from $96.00 to $105.00 and gave the company an "equal weight" rating in a report on Friday, September 5th. Citigroup lowered their price target on Dollar Tree from $130.00 to $124.00 and set a "buy" rating for the company in a report on Thursday, September 4th. Gordon Haskett lowered Dollar Tree from a "hold" rating to a "reduce" rating and set a $95.00 price objective for the company. in a research report on Wednesday, September 3rd. Piper Sandler reduced their price objective on Dollar Tree from $112.00 to $108.00 and set a "neutral" rating for the company in a research report on Thursday, September 4th. Finally, Sanford C. Bernstein reduced their price objective on Dollar Tree from $109.00 to $100.00 and set a "market perform" rating for the company in a research report on Monday, October 6th. Eight equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and five have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $109.18.

Insider Transactions at Dollar Tree

In other Dollar Tree news, Director Stephanie Stahl sold 1,185 shares of the business's stock in a transaction on Friday, September 5th. The stock was sold at an average price of $100.32, for a total transaction of $118,879.20. Following the completion of the transaction, the director owned 4,089 shares in the company, valued at approximately $410,208.48. The trade was a 22.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 6.60% of the company's stock.

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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