Quantitative Investment Management LLC Purchases New Shares in Dollar Tree, Inc. $DLTR

Key Points

• Quantitative Investment Management LLC has purchased a new stake in Dollar Tree, acquiring 110,069 shares valued at approximately $8.26 million, making it the firm's 26th largest holding.
• The company's stock buyback program is authorized to repurchase up to $2.5 billion of its outstanding shares, indicating the board believes the stock is undervalued.
• Dollar Tree reported a quarterly earnings per share (EPS) of $1.26, beating analysts’ estimates and demonstrating an 11.3% increase in revenue compared to the same quarter last year.

Quantitative Investment Management LLC acquired a new position in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund acquired 110,069 shares of the company's stock, valued at approximately $8,262,000. Dollar Tree accounts for approximately 0.8% of Quantitative Investment Management LLC's portfolio, making the stock its 26th largest holding. Quantitative Investment Management LLC owned about 0.05% of Dollar Tree at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Brooklyn Investment Group increased its holdings in Dollar Tree by 79.0% during the first 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 last quarter. Zions Bancorporation National Association UT purchased a new stake in shares of Dollar Tree in the 1st quarter worth $30,000. CX Institutional purchased a new stake in shares of Dollar Tree in the 1st quarter worth $43,000. Sentry Investment Management LLC bought a new position in Dollar Tree in the 1st quarter worth $48,000. Finally, GeoWealth Management LLC purchased a new position in Dollar Tree during the fourth quarter valued at $61,000. Hedge funds and other institutional investors own 97.40% of the company's stock.

Dollar Tree Price Performance

NASDAQ DLTR traded down $0.36 during trading on Thursday, hitting $112.50. 3,114,809 shares of the stock traded hands, compared to its average volume of 4,075,637. The company has a quick ratio of 0.72, a current ratio of 1.04 and a debt-to-equity ratio of 0.62. Dollar Tree, Inc. has a 12-month low of $60.49 and a 12-month high of $118.06. The firm has a 50-day simple moving average of $109.36 and a 200-day simple moving average of $89.43. The company has a market capitalization of $23.48 billion, a P/E ratio of -8.12, a price-to-earnings-growth ratio of 2.39 and a beta of 0.88.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its earnings results on Wednesday, June 4th. The company reported $1.26 earnings per share for the quarter, beating analysts' consensus estimates of $1.21 by $0.05. Dollar Tree had a negative net margin of 12.15% and a positive return on equity of 19.36%. The firm had revenue of $4.64 billion during the quarter, compared to analyst estimates of $4.52 billion. During the same period last year, the firm posted $1.43 earnings per share. Dollar Tree's revenue for the quarter was up 11.3% compared to the same quarter last year. Dollar Tree has set its FY 2025 guidance at 5.150-5.650 EPS. As a group, analysts predict that Dollar Tree, Inc. will post 5.39 EPS for the current year.

Dollar Tree announced that its Board of Directors has authorized a stock buyback program on Wednesday, July 9th that authorizes the company to buyback $2.50 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 11.5% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Dollar Tree

In other news, CMO Richard L. Mcneely sold 21,026 shares of the company's stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $94.62, for a total transaction of $1,989,480.12. Following the sale, the chief marketing officer directly owned 50,419 shares in the company, valued at approximately $4,770,645.78. This represents a 29.43% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 6.60% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

DLTR has been the subject of a number of analyst reports. JPMorgan Chase & Co. upped their price target on Dollar Tree from $111.00 to $138.00 and gave the stock an "overweight" rating in a research report on Monday, July 21st. Sanford C. Bernstein set a $82.00 target price on shares of Dollar Tree and gave the stock a "market perform" rating in a report on Monday, May 5th. UBS Group reaffirmed a "buy" rating and set a $140.00 price target on shares of Dollar Tree in a report on Tuesday. The Goldman Sachs Group lowered shares of Dollar Tree from a "strong-buy" rating to a "strong sell" rating in a research report on Thursday, June 5th. Finally, Barclays upgraded shares of Dollar Tree from an "equal weight" rating to an "overweight" rating and raised their price objective for the company from $95.00 to $138.00 in a research report on Monday, July 21st. Seven equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Dollar Tree currently has an average rating of "Hold" and an average price target of $102.68.

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.