Philosophy Capital Management LLC Decreases Position in Dollar Tree, Inc. $DLTR

Key Points

• Philosophy Capital Management LLC significantly reduced its stake in Dollar Tree, Inc. by selling 215,130 shares, which is a 56.4% decrease, leaving it with 166,638 shares.
• Analysts have set varied price targets for Dollar Tree, with Truist Financial raising their target to $129 and Morgan Stanley adjusting theirs to $105, while BNP Paribas downgraded the stock to a "hold" rating.
• Dollar Tree reported earnings of $0.77 per share for the last quarter, surpassing expectations, along with a revenue increase of 12.3% compared to the previous year.

Philosophy Capital Management LLC trimmed its position in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 56.4% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 166,638 shares of the company's stock after selling 215,130 shares during the quarter. Dollar Tree comprises 0.9% of Philosophy Capital Management LLC's investment portfolio, making the stock its 24th biggest position. Philosophy Capital Management LLC owned 0.08% of Dollar Tree worth $12,510,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Brooklyn Investment Group raised its position in shares of Dollar Tree by 79.0% during the 1st quarter. Brooklyn Investment Group now owns 358 shares of the company's stock valued at $27,000 after buying an additional 158 shares during the period. Zions Bancorporation National Association UT acquired a new position in shares of Dollar Tree in the 1st quarter valued at $30,000. CX Institutional purchased a new position in shares of Dollar Tree during the 1st quarter worth $43,000. Sentry Investment Management LLC acquired a new stake in shares of Dollar Tree during the 1st quarter worth about $48,000. Finally, MassMutual Private Wealth & Trust FSB raised its holdings in Dollar Tree by 121.4% in the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 974 shares of the company's stock valued at $73,000 after buying an additional 534 shares during the period. Institutional investors and hedge funds own 97.40% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have weighed in on DLTR. Guggenheim dropped their price target on shares of Dollar Tree from $130.00 to $125.00 and set a "buy" rating for the company in a research report on Monday. Cfra Research upgraded shares of Dollar Tree to a "hold" rating in a report on Wednesday, May 28th. Wells Fargo & Company restated an "overweight" rating on shares of Dollar Tree in a research note on Wednesday, September 3rd. UBS Group reaffirmed a "buy" rating and issued a $140.00 price objective on shares of Dollar Tree in a research note on Tuesday, August 26th. Finally, Truist Financial increased their target price on Dollar Tree from $127.00 to $129.00 and gave the stock a "buy" rating in a research note on Wednesday, September 3rd. Eight equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $109.28.

Dollar Tree Stock Up 2.6%

NASDAQ DLTR traded up $2.55 during trading hours on Wednesday, hitting $98.85. 5,599,079 shares of the company were exchanged, compared to its average volume of 4,232,651. The company has a 50 day moving average of $110.32 and a two-hundred day moving average of $91.49. 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 firm has a market cap of $20.16 billion, a price-to-earnings ratio of -7.28, a PEG ratio of 1.81 and a beta of 0.89.

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

Dollar Tree declared that its Board of Directors has approved a share repurchase program 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 programs are usually an indication that the company's management believes its stock is undervalued.

Insider Buying and Selling

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 shares were sold at an average price of $100.32, for a total value of $118,879.20. Following the sale, the director directly owned 4,089 shares of the company's stock, valued at approximately $410,208.48. This represents a 22.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. 6.60% of the stock is owned by company insiders.

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.