Parsifal Capital Management LP Takes Position in Dollar Tree, Inc. $DLTR

Key Points

• Parsifal Capital Management LP has acquired a new stake in Dollar Tree, purchasing 567,900 shares valued at approximately $42.6 million, making it the firm's 9th largest position.
• Dollar Tree reported earnings per share (EPS) of $0.77, surpassing analyst expectations of $0.38, with revenues totaling $4.57 billion for the quarter, a significant year-over-year increase of 12.3%.
• The company has initiated a $2.5 billion stock buyback program, allowing it to repurchase up to 11.5% of its outstanding shares, indicating that the board believes the shares are currently undervalued.

Parsifal Capital Management LP bought a new position in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 567,900 shares of the company's stock, valued at approximately $42,632,000. Dollar Tree makes up about 3.7% of Parsifal Capital Management LP's portfolio, making the stock its 9th biggest position. Parsifal Capital Management LP owned 0.26% of Dollar Tree at the end of the most recent quarter.

Several other institutional investors have also recently bought and sold shares of the business. Wealth Enhancement Advisory Services LLC grew its holdings in shares of Dollar Tree by 50.7% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 13,724 shares of the company's stock worth $1,030,000 after purchasing an additional 4,619 shares during the last quarter. McGinn Penninger Investment Management Inc. grew its holdings in shares of Dollar Tree by 13.2% during the first quarter. McGinn Penninger Investment Management Inc. now owns 68,585 shares of the company's stock worth $5,149,000 after purchasing an additional 8,015 shares during the last quarter. Bastion Asset Management Inc. bought a new stake in shares of Dollar Tree during the first quarter worth about $3,585,000. Empower Advisory Group LLC lifted its holdings in Dollar Tree by 8.0% during the 1st quarter. Empower Advisory Group LLC now owns 821,288 shares of the company's stock worth $61,654,000 after buying an additional 60,865 shares during the period. Finally, Charles Schwab Investment Management Inc. lifted its holdings in Dollar Tree by 6.2% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,471,865 shares of the company's stock worth $110,493,000 after buying an additional 85,508 shares during the period. Institutional investors and hedge funds own 97.40% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. JPMorgan Chase & Co. lifted their price objective on Dollar Tree from $138.00 to $140.00 and gave the stock an "overweight" rating in a research note on Thursday, September 4th. Barclays raised Dollar Tree from an "equal weight" rating to an "overweight" rating and lifted their price objective for the stock from $95.00 to $138.00 in a research note on Monday, July 21st. Gordon Haskett lowered Dollar Tree from a "hold" rating to a "reduce" rating and set a $95.00 price objective on the stock. in a research note on Wednesday, September 3rd. Evercore ISI lifted their price objective on Dollar Tree from $108.00 to $110.00 and gave the stock an "in-line" rating in a research note on Tuesday, August 26th. Finally, BNP Paribas lowered Dollar Tree from a "strong-buy" rating to a "hold" rating in a research note on Thursday, September 4th. Eight analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $108.26.

Insider Activity at Dollar Tree

In other news, Director Stephanie Stahl sold 1,185 shares of the business's 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 owned 4,089 shares in the company, valued at $410,208.48. The trade was a 22.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 6.60% of the stock is currently owned by corporate insiders.

Dollar Tree Trading Down 3.1%

DLTR stock traded down $3.10 during mid-day trading on Tuesday, reaching $96.30. The company's stock had a trading volume of 7,917,094 shares, compared to its average volume of 4,351,186. Dollar Tree, Inc. has a 12 month low of $60.49 and a 12 month high of $118.06. The company has a market cap of $19.64 billion, a price-to-earnings ratio of -7.10, a price-to-earnings-growth ratio of 1.81 and a beta of 0.89. The business's 50 day moving average price is $110.32 and its 200 day moving average price is $91.49. The company has a current ratio of 1.04, a quick ratio of 0.27 and a debt-to-equity ratio of 0.67.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last issued its earnings results on Wednesday, September 3rd. The company reported $0.77 EPS for the quarter, beating 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 business had revenue of $4.57 billion during the quarter, compared to analyst estimates of $4.46 billion. During the same period in the previous year, the company posted $0.67 EPS. The firm's revenue was up 12.3% compared to the same quarter last year. Dollar Tree has set its FY 2025 guidance at 5.320-5.720 EPS. On average, equities research analysts predict that Dollar Tree, Inc. will post 5.39 EPS for the current year.

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

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.