LSV Asset Management Raises Position in Dollar Tree, Inc. (NASDAQ:DLTR)

Key Points

• LSV Asset Management significantly increased its holdings in Dollar Tree by 275.8% during the 1st quarter, owning approximately 166,868 shares valued at $12.5 million.
• The company announced a $2.50 billion share buyback program, which allows for the repurchase of up to 11.5% of its shares, indicating that the board may consider its shares undervalued.
• Dollar Tree's stock performance reflects a market capitalization of $24.14 billion, with a recent trading price of $115.66, up from a 52-week low of $60.49.

LSV Asset Management lifted its position in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 275.8% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 166,868 shares of the company's stock after acquiring an additional 122,468 shares during the quarter. LSV Asset Management owned 0.08% of Dollar Tree worth $12,527,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. Kovitz Investment Group Partners LLC lifted its stake in Dollar Tree by 382.7% in the 4th quarter. Kovitz Investment Group Partners LLC now owns 6,524,870 shares of the company's stock valued at $488,974,000 after buying an additional 5,173,238 shares in the last quarter. Marshall Wace LLP raised its holdings in shares of Dollar Tree by 784.2% during the fourth quarter. Marshall Wace LLP now owns 4,377,366 shares of the company's stock valued at $328,040,000 after acquiring an additional 3,882,324 shares during the last quarter. Balyasny Asset Management L.P. lifted its position in shares of Dollar Tree by 2,489.9% in the fourth quarter. Balyasny Asset Management L.P. now owns 2,621,456 shares of the company's stock valued at $196,452,000 after acquiring an additional 2,520,237 shares in the last quarter. Capital International Investors lifted its position in shares of Dollar Tree by 30.1% in the fourth quarter. Capital International Investors now owns 8,753,693 shares of the company's stock valued at $656,000,000 after acquiring an additional 2,023,819 shares in the last quarter. Finally, Corvex Management LP boosted its stake in shares of Dollar Tree by 155.2% in the fourth quarter. Corvex Management LP now owns 2,886,735 shares of the company's stock worth $216,332,000 after acquiring an additional 1,755,761 shares during the last quarter. 97.40% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts recently commented on DLTR shares. Morgan Stanley increased their price objective on Dollar Tree from $80.00 to $96.00 and gave the company an "equal weight" rating in a research note on Thursday, June 5th. Truist Financial increased their target price on shares of Dollar Tree from $89.00 to $100.00 and gave the company a "buy" rating in a research report on Monday, June 2nd. UBS Group boosted their price target on shares of Dollar Tree from $95.00 to $108.00 and gave the stock a "buy" rating in a research report on Thursday, May 29th. Guggenheim reaffirmed a "buy" rating and set a $100.00 price objective on shares of Dollar Tree in a research note on Thursday, June 5th. Finally, Jefferies Financial Group began coverage on shares of Dollar Tree in a report on Thursday, July 17th. They issued a "hold" rating and a $106.00 price objective for the company. Two research analysts have rated the stock with a sell rating, thirteen have given a hold rating and seven have given a buy rating to the company. According to data from MarketBeat.com, Dollar Tree currently has an average rating of "Hold" and a consensus price target of $97.74.

Insider Buying and Selling

In other news, CMO Richard L. Mcneely sold 21,026 shares of Dollar Tree stock in a transaction on Friday, June 6th. The stock was sold at an average price of $94.62, for a total value of $1,989,480.12. Following the completion of the sale, the chief marketing officer directly owned 50,419 shares of the company's stock, valued at approximately $4,770,645.78. The trade was a 29.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 6.60% of the stock is owned by company insiders.

Dollar Tree Trading Down 1.0%

NASDAQ DLTR traded down $1.12 during trading hours on Friday, reaching $116.04. The company had a trading volume of 1,079,057 shares, compared to its average volume of 4,159,313. The stock has a 50-day moving average of $104.11 and a 200 day moving average of $85.57. Dollar Tree, Inc. has a 1-year low of $60.49 and a 1-year high of $118.06. The company has a current ratio of 1.04, a quick ratio of 0.72 and a debt-to-equity ratio of 0.62. The stock has a market capitalization of $24.22 billion, a P/E ratio of -8.37, a price-to-earnings-growth ratio of 2.49 and a beta of 0.88.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last released its quarterly earnings results on Wednesday, June 4th. The company reported $1.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.21 by $0.05. Dollar Tree had a negative net margin of 12.15% and a positive return on equity of 19.36%. The business had revenue of $4.64 billion for the quarter, compared to the consensus estimate of $4.52 billion. During the same period in the previous year, the firm earned $1.43 EPS. The business's revenue was up 11.3% on a year-over-year basis. As a group, research analysts anticipate that Dollar Tree, Inc. will post 5.39 earnings per share for the current fiscal year.

Dollar Tree announced 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 outstanding shares. This buyback authorization allows the company to repurchase up to 11.5% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board of directors believes its shares are 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.