Resona Asset Management Co. Ltd. Grows Holdings in Dollar Tree, Inc. (NASDAQ:DLTR)

Key Points

• Resona Asset Management Co. Ltd. increased its holdings in Dollar Tree, Inc. by 9.6% in Q1, bringing their total to 62,905 shares worth $4.7 million.
• Dollar Tree reported $1.26 earnings per share for the last quarter, exceeding expectations, with revenue rising 11.3% year-over-year to $4.64 billion.
• The company announced a $2.5 billion stock buyback plan, indicating that the board believes the shares are undervalued, while the stock is currently trading around $113.49.

Resona Asset Management Co. Ltd. grew its holdings in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 9.6% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 62,905 shares of the company's stock after purchasing an additional 5,516 shares during the period. Resona Asset Management Co. Ltd.'s holdings in Dollar Tree were worth $4,700,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Forum Financial Management LP purchased a new stake in Dollar Tree in the fourth quarter worth $340,000. Wealth Enhancement Advisory Services LLC increased its stake in Dollar Tree by 50.7% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 13,724 shares of the company's stock worth $1,030,000 after purchasing an additional 4,619 shares during the period. McGinn Penninger Investment Management Inc. increased its stake in Dollar Tree by 13.2% in the first quarter. McGinn Penninger Investment Management Inc. now owns 68,585 shares of the company's stock worth $5,149,000 after purchasing an additional 8,015 shares during the period. Bastion Asset Management Inc. purchased a new stake in Dollar Tree in the first quarter worth $3,585,000. Finally, Empower Advisory Group LLC increased its stake in Dollar Tree by 8.0% in the first quarter. Empower Advisory Group LLC now owns 821,288 shares of the company's stock worth $61,654,000 after purchasing an additional 60,865 shares during the period. Hedge funds and other institutional investors own 97.40% of the company's stock.

Dollar Tree Stock Down 1.0%

Shares of DLTR stock opened at $113.49 on Friday. Dollar Tree, Inc. has a 1-year low of $60.49 and a 1-year high of $118.06. The stock's fifty day moving average price is $106.70 and its 200 day moving average price is $87.29. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.04 and a quick ratio of 0.72. The company has a market cap of $23.69 billion, a price-to-earnings ratio of -8.19, a price-to-earnings-growth ratio of 2.46 and a beta of 0.88.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last announced its earnings results on Wednesday, June 4th. The company reported $1.26 earnings per share for the quarter, topping the consensus estimate of $1.21 by $0.05. Dollar Tree had a positive return on equity of 19.36% and a negative net margin of 12.15%. The firm had revenue of $4.64 billion for the quarter, compared to the consensus estimate of $4.52 billion. During the same period in the previous year, the business earned $1.43 EPS. The firm's revenue for the quarter was up 11.3% on a year-over-year basis. On average, research analysts expect that Dollar Tree, Inc. will post 5.39 earnings per share for the current fiscal year.

Dollar Tree announced that its board has authorized a stock buyback plan on Wednesday, July 9th that permits the company to buyback $2.50 billion in outstanding shares. This buyback authorization permits the company to reacquire up to 11.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on DLTR. UBS Group lifted their target price on Dollar Tree from $95.00 to $108.00 and gave the company a "buy" rating in a research report on Thursday, May 29th. Jefferies Financial Group began coverage on Dollar Tree in a research report on Thursday, July 17th. They set a "hold" rating and a $106.00 target price for the company. Barclays raised Dollar Tree from an "equal weight" rating to an "overweight" rating and lifted their target price for the company from $95.00 to $138.00 in a research report on Monday, July 21st. Wells Fargo & Company lifted their target price on Dollar Tree from $105.00 to $130.00 and gave the company an "overweight" rating in a research report on Tuesday, July 22nd. Finally, Truist Financial reaffirmed a "buy" rating and set a $127.00 target price (up from $109.00) on shares of Dollar Tree in a research report on Wednesday. Two equities 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's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $99.89.

Insiders Place Their Bets

In related news, CMO Richard L. Mcneely sold 21,026 shares of the business's stock in a transaction on Friday, June 6th. The stock was sold at an average price of $94.62, for a total transaction of $1,989,480.12. Following the transaction, the chief marketing officer directly owned 50,419 shares in the company, valued at $4,770,645.78. The trade was a 29.43% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 6.60% of the stock is currently owned by company insiders.

About Dollar Tree

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.

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