Optas LLC Acquires New Stake in Dollar Tree, Inc. $DLTR

Key Points

• Optas LLC has acquired a new stake in Dollar Tree, Inc., purchasing 3,336 shares valued at approximately $330,000 during the 2nd quarter.
• Dollar Tree reported strong quarterly earnings with $0.77 earnings per share and a revenue increase of 12.3% year-over-year, surpassing analysts' expectations.
• The company's board has authorized a share buyback program worth $2.50 billion, indicating management's belief that the stock is undervalued.

Optas LLC acquired a new stake in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund acquired 3,336 shares of the company's stock, valued at approximately $330,000.

Several other large investors also recently bought and sold shares of the stock. WESPAC Advisors LLC purchased a new stake in Dollar Tree during the 2nd quarter worth about $953,000. KLP Kapitalforvaltning AS increased its holdings in Dollar Tree by 1.9% during the 2nd quarter. KLP Kapitalforvaltning AS now owns 71,243 shares of the company's stock worth $7,056,000 after purchasing an additional 1,300 shares during the period. Gratus Wealth Advisors LLC purchased a new stake in Dollar Tree during the 2nd quarter worth about $260,000. Valeo Financial Advisors LLC purchased a new stake in Dollar Tree during the 2nd quarter worth about $319,000. Finally, Brown Miller Wealth Management LLC purchased a new stake in Dollar Tree during the 2nd quarter worth about $230,000. Hedge funds and other institutional investors own 97.40% of the company's stock.

Insiders Place Their Bets

In other Dollar Tree news, Director Stephanie Stahl sold 1,185 shares of the stock in a transaction that occurred 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 sale, the director directly 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 6.60% of the company's stock.

Dollar Tree Stock Up 1.4%

Shares of NASDAQ DLTR opened at $89.02 on Friday. The stock has a market cap of $18.16 billion, a PE ratio of -6.56, a price-to-earnings-growth ratio of 1.60 and a beta of 0.85. The company has a quick ratio of 0.27, a current ratio of 1.04 and a debt-to-equity ratio of 0.67. Dollar Tree, Inc. has a 52-week low of $60.49 and a 52-week high of $118.06. The business has a 50-day moving average price of $103.44 and a 200 day moving average price of $95.17.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its quarterly earnings data on Wednesday, September 3rd. The company reported $0.77 earnings per share 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 analysts' expectations of $4.46 billion. During the same period last year, the firm earned $0.67 EPS. The firm'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. Equities research analysts forecast that Dollar Tree, Inc. will post 5.39 earnings per share for the current year.

Dollar Tree announced that its board has authorized a share repurchase program on Wednesday, July 9th that authorizes the company to buyback $2.50 billion in shares. This buyback authorization authorizes the company to purchase up to 11.5% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's management believes its shares are undervalued.

Wall Street Analyst Weigh In

DLTR has been the topic of several recent research reports. Wells Fargo & Company restated an "overweight" rating on shares of Dollar Tree in a report on Wednesday, September 3rd. Telsey Advisory Group restated an "outperform" rating and set a $130.00 price target on shares of Dollar Tree in a report on Thursday, September 4th. Sanford C. Bernstein cut their price target on Dollar Tree from $109.00 to $100.00 and set a "market perform" rating on the stock in a report on Monday. Barclays upgraded Dollar Tree from an "equal weight" rating to an "overweight" rating and increased their price objective for the company from $95.00 to $138.00 in a report on Monday, July 21st. Finally, Evercore ISI dropped their price objective on Dollar Tree from $105.00 to $102.00 and set an "in-line" rating on the stock in a report on Tuesday. Eight investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and five have given a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $110.06.

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.

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