Primecap Management Co. CA Has $293.74 Million Stock Holdings in Dollar Tree, Inc. (NASDAQ:DLTR)

Key Points

• Primecap Management Co. CA reduced its stake in Dollar Tree, Inc. by 1.6%, holding approximately 3.9 million shares valued at $293.7 million after selling 65,590 shares during the first quarter.
• Dollar Tree has authorized a $2.50 billion share buyback program, indicating management's belief that its shares are undervalued.
• The company reported an earnings per share of $1.26 for the last quarter, exceeding analyst expectations, with an 11.3% increase in revenue year-over-year.

Primecap Management Co. CA decreased its holdings in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 1.6% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 3,912,835 shares of the company's stock after selling 65,590 shares during the quarter. Primecap Management Co. CA owned approximately 1.82% of Dollar Tree worth $293,737,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently bought and sold shares of the business. Bessemer Group Inc. raised its holdings in shares of Dollar Tree by 34,600.0% in the fourth quarter. Bessemer Group Inc. now owns 347 shares of the company's stock valued at $26,000 after buying an additional 346 shares during the last quarter. CX Institutional acquired a new position in Dollar Tree during the 1st quarter worth $43,000. Sentry Investment Management LLC bought a new position in Dollar Tree in the 1st quarter valued at $48,000. GeoWealth Management LLC acquired a new stake in shares of Dollar Tree in the 4th quarter valued at $61,000. Finally, MassMutual Private Wealth & Trust FSB raised its position in shares of Dollar Tree by 121.4% during the first quarter. MassMutual Private Wealth & Trust FSB now owns 974 shares of the company's stock worth $73,000 after acquiring an additional 534 shares during the last quarter. Institutional investors and hedge funds own 97.40% of the company's stock.

Dollar Tree Trading Up 0.5%

Shares of NASDAQ DLTR traded up $0.61 during midday trading on Friday, reaching $117.77. The stock had a trading volume of 172,852 shares, compared to its average volume of 4,153,833. The company's 50 day moving average price is $104.11 and its 200 day moving average price is $85.57. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.72 and a current ratio of 1.04. Dollar Tree, Inc. has a twelve month low of $60.49 and a twelve month high of $117.88. The firm has a market cap of $24.58 billion, a price-to-earnings ratio of -8.48, a price-to-earnings-growth ratio of 2.49 and a beta of 0.88.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last released its earnings results on Wednesday, June 4th. The company reported $1.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.21 by $0.05. The business had revenue of $4.64 billion for the quarter, compared to analyst estimates of $4.52 billion. Dollar Tree had a negative net margin of 12.15% and a positive return on equity of 19.36%. Dollar Tree's revenue for the quarter was up 11.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.43 earnings per share. As a group, sell-side analysts expect 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.

Insiders Place Their Bets

In other news, CMO Richard L. Mcneely sold 21,026 shares of the firm's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $94.62, for a total value of $1,989,480.12. Following the completion of the sale, the chief marketing officer directly owned 50,419 shares in the company, valued at $4,770,645.78. This trade represents a 29.43% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Company insiders own 6.60% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently weighed in on the stock. Morgan Stanley increased their price objective on shares of Dollar Tree from $80.00 to $96.00 and gave the company an "equal weight" rating in a report on Thursday, June 5th. Piper Sandler lifted their price objective on shares of Dollar Tree from $72.00 to $93.00 and gave the stock a "neutral" rating in a research note on Thursday, June 5th. Cfra Research raised shares of Dollar Tree to a "hold" rating in a research note on Wednesday, May 28th. Sanford C. Bernstein set a $82.00 price target on shares of Dollar Tree and gave the stock a "market perform" rating in a research report on Monday, May 5th. Finally, Guggenheim reaffirmed a "buy" rating and set a $100.00 price target on shares of Dollar Tree in a research report on Thursday, June 5th. Two research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat.com, Dollar Tree has an average rating of "Hold" and a consensus target price of $97.74.

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.