Night Squared LP Takes $2.82 Million Position in Dollar Tree, Inc. $DLTR

Key Points

• Night Squared LP has recently acquired a stake in Dollar Tree, purchasing 37,500 shares valued at approximately $2.8 million, making Dollar Tree 1.7% of its holdings.
• Several institutional investors, including Vanguard Group and T. Rowe Price, have also increased their positions in Dollar Tree recently, indicating strong institutional confidence in the stock.
• Dollar Tree's management has authorized a substantial $2.5 billion share repurchase program, reflecting their belief that the company's stock is undervalued.

Night Squared LP acquired a new position in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 37,500 shares of the company's stock, valued at approximately $2,815,000. Dollar Tree accounts for 1.7% of Night Squared LP's investment portfolio, making the stock its 28th biggest holding.

Other institutional investors also recently modified their holdings of the company. Coldstream Capital Management Inc. acquired a new position in Dollar Tree during the fourth quarter worth about $284,000. Northern Trust Corp increased its stake in shares of Dollar Tree by 2.1% in the fourth quarter. Northern Trust Corp now owns 1,992,742 shares of the company's stock valued at $149,336,000 after buying an additional 41,763 shares during the period. Lido Advisors LLC increased its stake in shares of Dollar Tree by 67.3% in the fourth quarter. Lido Advisors LLC now owns 7,099 shares of the company's stock valued at $532,000 after buying an additional 2,856 shares during the period. AQR Capital Management LLC acquired a new position in shares of Dollar Tree in the fourth quarter valued at approximately $4,842,000. Finally, Mercer Global Advisors Inc. ADV increased its stake in shares of Dollar Tree by 6.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 4,656 shares of the company's stock valued at $349,000 after buying an additional 292 shares during the period. Institutional investors own 97.40% of the company's stock.

Dollar Tree Stock Down 8.4%

NASDAQ:DLTR traded down $9.32 during trading hours on Wednesday, hitting $102.03. 15,754,528 shares of the company traded hands, compared to its average volume of 4,152,159. The company has a quick ratio of 0.72, a current ratio of 1.04 and a debt-to-equity ratio of 0.62. The firm's 50-day simple moving average is $110.30 and its 200-day simple moving average is $90.61. Dollar Tree, Inc. has a one year low of $60.49 and a one year high of $118.06. The company has a market cap of $21.29 billion, a PE ratio of -7.36, a PEG ratio of 2.32 and a beta of 0.89.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last issued its quarterly earnings data on Wednesday, September 3rd. The company reported $0.77 earnings per share for the quarter, beating the consensus estimate of $0.38 by $0.39. Dollar Tree had a positive return on equity of 19.36% and a negative net margin of 12.15%.The business had revenue of $4.57 billion for the quarter, compared to analysts' expectations of $4.46 billion. During the same period last year, the business earned $0.67 EPS. The business's 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. Equities analysts predict that Dollar Tree, Inc. will post 5.39 earnings per share for the current year.

Dollar Tree declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, July 9th that authorizes the company to buyback $2.50 billion in outstanding shares. This buyback authorization authorizes the company to repurchase up to 11.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In other Dollar Tree news, CMO Richard L. Mcneely sold 21,026 shares of the firm's stock in a transaction 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 directly owned 50,419 shares in the company, valued at approximately $4,770,645.78. This trade represents a 29.43% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 6.60% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on DLTR shares. Cfra Research raised Dollar Tree to a "hold" rating in a research note on Wednesday, May 28th. Piper Sandler upped their price objective on Dollar Tree from $93.00 to $112.00 and gave the company a "neutral" rating in a research note on Tuesday, August 19th. BMO Capital Markets upped their target price on Dollar Tree from $80.00 to $85.00 and gave the company a "market perform" rating in a report on Thursday, June 5th. Gordon Haskett cut Dollar Tree from a "hold" rating to a "reduce" rating and set a $95.00 target price on the stock. in a report on Wednesday. Finally, Barclays upgraded Dollar Tree from an "equal weight" rating to an "overweight" rating and upped their target price for the company from $95.00 to $138.00 in a report on Monday, July 21st. Eight analysts have rated the stock with a Buy rating, eleven have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Dollar Tree presently has a consensus rating of "Hold" and a consensus target price of $104.15.

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.