Machina Capital S.A.S. Buys New Shares in Dollar Tree, Inc. (NASDAQ:DLTR)

Key Points

• Machina Capital S.A.S. acquired a new stake in Dollar Tree, Inc. by purchasing 5,117 shares valued at approximately $384,000 in the first quarter.
• Dollar Tree has announced a $2.5 billion share buyback plan aimed at repurchasing up to 11.5% of its shares, indicating the company's belief that its stock is undervalued.
• The company's recent earnings report showed a quarterly revenue increase of 11.3% year-over-year, with an EPS of $1.26, surpassing the consensus estimate of $1.21.

Machina Capital S.A.S. bought a new position in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 5,117 shares of the company's stock, valued at approximately $384,000.

Other hedge funds also recently made changes to their positions in the company. Bessemer Group Inc. boosted its holdings in Dollar Tree by 34,600.0% in the fourth quarter. Bessemer Group Inc. now owns 347 shares of the company's stock valued at $26,000 after acquiring an additional 346 shares in the last quarter. Hurley Capital LLC bought a new stake in Dollar Tree in the fourth quarter valued at $33,000. Murphy & Mullick Capital Management Corp bought a new stake in Dollar Tree in the fourth quarter valued at $43,000. CX Institutional bought a new stake in Dollar Tree in the first quarter valued at $43,000. Finally, Sentry Investment Management LLC bought a new stake in Dollar Tree in the first quarter valued at $48,000. 97.40% of the stock is owned by hedge funds and other institutional investors.

Dollar Tree Stock Up 0.2%

DLTR traded up $0.20 on Friday, hitting $114.41. The company had a trading volume of 2,004,192 shares, compared to its average volume of 3,099,778. The stock has a fifty day moving average price of $99.41 and a 200-day moving average price of $82.93. Dollar Tree, Inc. has a 12-month low of $60.49 and a 12-month high of $115.99. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.72 and a current ratio of 1.04. The stock has a market capitalization of $23.88 billion, a price-to-earnings ratio of -8.25, a P/E/G ratio of 2.45 and a beta of 0.86.

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

Dollar Tree announced that its board has approved a share buyback program on Wednesday, July 9th that permits the company to buyback $2.50 billion in outstanding shares. This buyback authorization permits the company to purchase up to 11.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on DLTR shares. Morgan Stanley upped their price target on shares of Dollar Tree from $80.00 to $96.00 and gave the stock an "equal weight" rating in a research note on Thursday, June 5th. Piper Sandler upped their price target on shares of Dollar Tree from $72.00 to $93.00 and gave the stock a "neutral" rating in a research note on Thursday, June 5th. Telsey Advisory Group reiterated a "market perform" rating and issued a $95.00 price target on shares of Dollar Tree in a research note on Wednesday, June 4th. Guggenheim reiterated a "buy" rating and issued a $100.00 price target on shares of Dollar Tree in a research note on Thursday, June 5th. Finally, Barclays raised Dollar Tree from an "equal weight" rating to an "overweight" rating and boosted their target price for the stock from $95.00 to $138.00 in a research report on Monday, July 21st. Two analysts have rated the stock with a sell rating, thirteen have issued a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $97.74.

Insider Transactions at Dollar Tree

In related news, CMO Richard L. Mcneely sold 21,026 shares of the firm's 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 transaction, the chief marketing officer owned 50,419 shares in the company, valued at $4,770,645.78. This trade represents a 29.43% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Insiders own 6.60% of the company's stock.

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.