Primecap Management Co. CA Invests $455.85 Million in Dollar Tree, Inc. $DLTR

Key Points

• Primecap Management invested approximately $455.85 million in Dollar Tree during the second quarter, acquiring 3.77 million shares and a 1.96% stake. Institutional investors collectively own 97.4% of DLTR.
• Dollar Tree exceeded quarterly expectations, reporting $1.74 in EPS versus the $1.53 consensus and $4.98 billion in revenue, up 7.2% year over year. The company guided for second-quarter fiscal 2026 EPS of $1.00 to $1.15.
• The board authorized a $2.5 billion share-repurchase program, allowing buybacks of up to 10.7% of outstanding shares. Despite some analyst upgrades, the stock carries a consensus “Hold” rating with a target price of $125.27.

Primecap Management Co. CA purchased a new stake in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm purchased 3,768,875 shares of the company's stock, valued at approximately $455,845,000. Primecap Management Co. CA owned 1.96% of Dollar Tree at the end of the most recent reporting period.

A number of other institutional investors have also recently modified their holdings of DLTR. Canada Pension Plan Investment Board acquired a new position in Dollar Tree during the second quarter worth $41,287,000. Legal & General Group Plc acquired a new stake in Dollar Tree in the second quarter valued at $159,947,000. The Manufacturers Life Insurance Company acquired a new stake in Dollar Tree in the second quarter valued at $10,971,000. Jones Financial Companies Lllp purchased a new stake in shares of Dollar Tree during the 2nd quarter worth $4,030,000. Finally, L2 Asset Management LLC purchased a new stake in shares of Dollar Tree during the 2nd quarter worth $12,183,000. 97.40% of the stock is currently owned by hedge funds and other institutional investors.

Dollar Tree Trading Down 1.7%

NASDAQ:DLTR opened at $134.48 on Wednesday. The company has a market capitalization of $25.84 billion, a PE ratio of 21.01, a price-to-earnings-growth ratio of 1.56 and a beta of 0.64. The company has a quick ratio of 0.39, a current ratio of 1.16 and a debt-to-equity ratio of 0.84. Dollar Tree, Inc. has a 52-week low of $84.71 and a 52-week high of $142.40. The stock has a fifty day simple moving average of $124.88 and a 200-day simple moving average of $114.56.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The company reported $1.74 EPS for the quarter, beating analysts' consensus estimates of $1.53 by $0.21. Dollar Tree had a net margin of 6.51% and a return on equity of 35.19%. The firm had revenue of $4.98 billion for the quarter, compared to analysts' expectations of $4.96 billion. During the same period in the prior year, the company earned $1.26 EPS. The firm's revenue was up 7.2% on a year-over-year basis. Dollar Tree has set its Q2 2026 guidance at 1.000-1.150 EPS. On average, equities research analysts expect that Dollar Tree, Inc. will post 7.02 earnings per share for the current fiscal year.

Dollar Tree declared that its Board of Directors has authorized a share buyback program on Thursday, July 2nd that allows the company to buyback $2.50 billion in shares. This buyback authorization allows the company to purchase up to 10.7% of its shares through open market purchases. Shares buyback programs are often an indication that the company's board of directors believes its stock is undervalued.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on DLTR shares. Weiss Ratings upgraded shares of Dollar Tree from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, June 18th. Evercore raised shares of Dollar Tree from a "hold" rating to an "outperform" rating in a report on Wednesday, July 8th. Bank of America restated an "underperform" rating on shares of Dollar Tree in a research report on Thursday, May 28th. Sanford C. Bernstein increased their target price on shares of Dollar Tree from $124.00 to $127.00 and gave the company a "market perform" rating in a report on Friday, July 31st. Finally, BNP Paribas Exane lifted their price target on shares of Dollar Tree from $88.00 to $98.00 and gave the company an "underperform" rating in a research report on Friday, May 29th. Ten analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $125.27.

More Dollar Tree News

Here are the key news stories impacting Dollar Tree this week:

• Positive Sentiment: Truist raised its price target: Truist Financial increased its target for DLTR from $136 to $138 and maintained a “buy” rating, signaling continued confidence in the retailer’s earnings prospects. Truist raises Dollar Tree price target
• Positive Sentiment: Investors are positioning ahead of earnings: Dollar Tree is scheduled to report second-quarter fiscal 2026 results before the market opens on August 27. Expectations are supported by the company’s recent 7.2% sales growth, 3.5% comparable-store sales growth, stronger adjusted EPS, and full-year adjusted EPS guidance of $6.70 to $7.10. Dollar Tree gains ahead of earnings
• Positive Sentiment: Recent momentum has improved sentiment: DLTR gained about 4% in the prior session, reflecting optimism around profitability, share repurchases, and the possibility of an improved outlook. Dollar Tree shares surge
• Neutral Sentiment: Earnings are the immediate catalyst: Analysts will focus on consumer demand, comparable-store sales, margins, and whether management meets its second-quarter adjusted EPS guidance of $1.00 to $1.15. Dollar Tree Q2 earnings expectations
• Neutral Sentiment: Short-interest data appears unreliable: The report lists zero shares short and a zero-day short-interest ratio while also describing a significant increase, indicating a likely data error rather than a meaningful trading signal.
• Negative Sentiment: Technical resistance could limit gains: Benzinga identified potential resistance near $141.50, where investors who bought during the recent rally may sell, creating a ceiling for DLTR. Dollar Tree technical resistance

About Dollar Tree

Dollar Tree, Inc is a North American discount retailer that operates a portfolio of value-oriented store banners, primarily Dollar Tree and Family Dollar. The company's stores offer a broad assortment of everyday items at low price points, including household essentials, food and snacks, health and beauty products, cleaning supplies, seasonal and party goods, home décor, and basic apparel. Dollar Tree's merchandising strategy emphasizes high-turnover branded and private-label merchandise tailored to budget-conscious consumers, with Family Dollar complementing the chain by offering a wider range of price points and assortment depth in smaller-format neighborhood locations.

Founded in 1986 and headquartered in Chesapeake, Virginia, Dollar Tree has grown through both organic store openings and acquisitions.

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