Pzena Investment Management LLC Invests $1.18 Billion in Dollar Tree, Inc. $DLTR

Key Points

• Pzena Investment Management acquired 10.22 million Dollar Tree shares worth approximately $1.18 billion, giving it a 5.32% stake and making DLTR its fifth-largest portfolio holding.
• Dollar Tree recently exceeded quarterly earnings expectations, reporting $1.74 EPS and $4.98 billion in revenue, with revenue up 7.2% year over year.
• The company authorized a $2.5 billion share buyback, covering up to 10.7% of outstanding shares. Analysts remain mixed, with an overall “Hold” rating and an average price target of $123.41.

Pzena Investment Management LLC purchased a new position in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 10,222,060 shares of the company's stock, valued at approximately $1,176,661,000. Dollar Tree comprises 3.5% of Pzena Investment Management LLC's investment portfolio, making the stock its 5th largest position. Pzena Investment Management LLC owned 5.32% of Dollar Tree at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. NewEdge Advisors LLC lifted its stake in Dollar Tree by 3,237.4% in the first quarter. NewEdge Advisors LLC now owns 13,750 shares of the company's stock valued at $1,032,000 after buying an additional 13,338 shares during the last quarter. Woodline Partners LP grew its position in shares of Dollar Tree by 40.7% during the first quarter. Woodline Partners LP now owns 17,078 shares of the company's stock worth $1,282,000 after acquiring an additional 4,941 shares during the last quarter. Focus Partners Wealth grew its position in shares of Dollar Tree by 2.0% during the first quarter. Focus Partners Wealth now owns 10,646 shares of the company's stock worth $799,000 after acquiring an additional 213 shares during the last quarter. Sivia Capital Partners LLC acquired a new stake in shares of Dollar Tree in the 2nd quarter worth about $257,000. Finally, CW Advisors LLC acquired a new stake in shares of Dollar Tree in the 2nd quarter worth about $264,000. Institutional investors and hedge funds own 97.40% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on DLTR shares. UBS Group reissued a "buy" rating on shares of Dollar Tree in a research note on Monday. Morgan Stanley upped their target price on shares of Dollar Tree from $126.00 to $130.00 and gave the stock an "equal weight" rating in a research report on Friday, May 29th. Evercore upgraded shares of Dollar Tree from a "hold" rating to an "outperform" rating in a research note on Wednesday, July 8th. Freedom Capital cut Dollar Tree from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 28th. Finally, Weiss Ratings upgraded Dollar Tree from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, June 18th. Ten investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, Dollar Tree currently has an average rating of "Hold" and an average target price of $123.41.

Dollar Tree Price Performance

Shares of NASDAQ DLTR opened at $129.54 on Tuesday. The stock has a market cap of $24.89 billion, a P/E ratio of 20.24, a P/E/G ratio of 1.48 and a beta of 0.64. The firm's 50-day simple moving average is $122.51 and its 200 day simple moving average is $113.99. Dollar Tree, Inc. has a fifty-two week low of $84.71 and a fifty-two week high of $142.40. 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 (NASDAQ:DLTR - Get Free Report) last announced its earnings results on Thursday, May 28th. The company reported $1.74 earnings per share (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 during the quarter, compared to analyst estimates of $4.96 billion. During the same quarter in the prior year, the firm posted $1.26 EPS. Dollar Tree's revenue was up 7.2% compared to the same quarter last year. Dollar Tree has set its Q2 2026 guidance at 1.000-1.150 EPS. Equities analysts expect that Dollar Tree, Inc. will post 7 EPS for the current year.

Dollar Tree declared that its board has approved a share buyback plan on Thursday, July 2nd that authorizes the company to buyback $2.50 billion in outstanding shares. This buyback authorization authorizes the company to buy up to 10.7% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

Dollar Tree Company Profile

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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