Rakuten Investment Management Inc. Buys New Shares in Dollar Tree, Inc. $DLTR

Key Points

• Rakuten Investment Management initiated a Dollar Tree position by purchasing 36,021 shares valued at approximately $4.23 million. Institutional investors collectively own 97.4% of the company, with several major funds also building stakes.
• Dollar Tree reported a strong second quarter, with revenue rising 7% year over year to $4.89 billion and EPS of $2.70 versus the $1.15 consensus estimate. Comparable-store sales increased 3.7%, and management raised full-year fiscal 2026 adjusted EPS guidance to $7.70–$8.05.
• The outlook remains mixed: third-quarter EPS guidance of $0.80–$0.95 fell well below analysts’ expectations, reflecting pressure from fuel costs, tariffs and reinvestment spending. The company also authorized a $2.5 billion share-buyback program, covering up to 10.7% of shares outstanding.

Rakuten Investment Management Inc. bought a new position in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 36,021 shares of the company's stock, valued at approximately $4,233,000.

A number of other large investors have also recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of Dollar Tree in the 2nd quarter valued at about $2,643,741,000. Pzena Investment Management LLC bought a new stake in shares of Dollar Tree in the 2nd quarter valued at about $1,176,661,000. State Street Corp raised its holdings in shares of Dollar Tree by 3.5% in the 3rd quarter. State Street Corp now owns 9,421,856 shares of the company's stock valued at $889,141,000 after purchasing an additional 319,938 shares during the period. Primecap Management Co. CA acquired a new stake in Dollar Tree in the 2nd quarter valued at about $455,845,000. Finally, Alliancebernstein L.P. grew its holdings in Dollar Tree by 176.9% during the second quarter. Alliancebernstein L.P. now owns 3,746,222 shares of the company's stock worth $371,026,000 after purchasing an additional 2,393,172 shares during the period. Institutional investors and hedge funds own 97.40% of the company's stock.

Dollar Tree Price Performance

Shares of NASDAQ DLTR opened at $128.26 on Monday. The firm has a market cap of $24.07 billion, a P/E ratio of 15.66, a price-to-earnings-growth ratio of 1.32 and a beta of 0.64. The business's 50 day moving average is $126.03 and its 200-day moving average is $114.71. The company has a current ratio of 1.13, a quick ratio of 0.39 and a debt-to-equity ratio of 0.86. Dollar Tree, Inc. has a 1-year low of $84.71 and a 1-year high of $142.40.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last released its quarterly earnings results on Thursday, August 27th. The company reported $2.70 EPS for the quarter, beating the consensus estimate of $1.15 by $1.55. Dollar Tree had a net margin of 8.03% and a return on equity of 38.61%. The business had revenue of $4.89 billion for the quarter, compared to the consensus estimate of $4.86 billion. During the same period in the prior year, the company posted $0.77 earnings per share. Dollar Tree's revenue was up 7.0% compared to the same quarter last year. Dollar Tree has set its Q3 2026 guidance at 0.800-0.950 EPS and its FY 2026 guidance at 7.700-8.050 EPS. Equities research analysts predict that Dollar Tree, Inc. will post 7.13 earnings per share for the current year.

Dollar Tree declared that its Board of Directors has approved a stock buyback program on Thursday, July 2nd that allows the company to buyback $2.50 billion in outstanding shares. This buyback authorization allows the company to purchase up to 10.7% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's management believes its shares are undervalued.

Dollar Tree News Summary

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

• Positive Sentiment: Dollar Tree reported second-quarter revenue of $4.89 billion, up 7% year over year and above estimates of approximately $4.86 billion. Adjusted earnings per share reached $2.70, substantially exceeding the $1.15 consensus, helped by higher markups, lower freight costs, reduced shrinkage and tariff-related refunds. Dollar Tree beats quarterly revenue estimates on steady demand
• Positive Sentiment: Comparable-store sales rose 3.7%, driven by a 3.3% increase in average ticket and positive customer traffic of 0.4%. Management also cited improving assortments and continued demand for affordable essentials. Dollar Tree Q2 earnings call highlights
• Positive Sentiment: Management raised full-year fiscal 2026 adjusted EPS guidance to $7.70–$8.05 from $6.70–$7.10. Dollar Tree also repurchased approximately 5.6 million shares for $605 million during the quarter, supporting per-share results. Dollar Tree lifts earnings outlook
• Neutral Sentiment: Dollar Tree is attracting more middle- and high-income shoppers seeking value, while lower-income customers remain pressured by the cost of necessities. This broadens the customer base but also highlights uneven consumer health. Dollar Tree attracts higher-income customers
• Negative Sentiment: Third-quarter adjusted EPS guidance of $0.80–$0.95 was well below the roughly $1.40 analyst expectation. Investors viewed the outlook as evidence that fuel costs, tariffs and reinvestment expenses could pressure profitability, overshadowing the second-quarter beat and the higher full-year forecast. Dollar Tree cites higher fuel prices as a headwind

Analysts Set New Price Targets

DLTR has been the topic of several research analyst reports. Raymond James Financial restated an "outperform" rating and issued a $145.00 price objective on shares of Dollar Tree in a research note on Friday. Morgan Stanley lifted their target price on Dollar Tree from $130.00 to $145.00 and gave the stock an "equal weight" rating in a research note on Friday. The Goldman Sachs Group cut Dollar Tree from a "neutral" rating to a "hold" rating in a research note on Wednesday, July 8th. Wells Fargo & Company raised their price target on Dollar Tree from $145.00 to $155.00 and gave the company an "overweight" rating in a report on Monday, August 17th. Finally, Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Dollar Tree from $99.00 to $102.00 and gave the stock a "hold" rating in a research report on Thursday, June 4th. Ten research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $129.18.

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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