Shellback Capital LP Acquires Shares of 50,000 Dollar Tree, Inc. $DLTR

Key Points

• Shellback Capital LP has acquired a new stake in Dollar Tree, purchasing 50,000 shares valued at approximately $3.75 million in Q1.
• The company reported $0.77 earnings per share (EPS) for its latest quarter, significantly surpassing the consensus estimate of $0.38.
• Dollar Tree's Board has initiated a $2.50 billion stock buyback program, indicating confidence that the stock is undervalued.

Shellback Capital LP bought a new stake in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 50,000 shares of the company's stock, valued at approximately $3,754,000.

Several other hedge funds also recently added to or reduced their stakes in the business. Horizon Investments LLC boosted its holdings in Dollar Tree by 5.1% in the first quarter. Horizon Investments LLC now owns 2,905 shares of the company's stock valued at $218,000 after purchasing an additional 140 shares during the last quarter. Brooklyn Investment Group boosted its holdings in Dollar Tree by 79.0% in the first quarter. Brooklyn Investment Group now owns 358 shares of the company's stock valued at $27,000 after purchasing an additional 158 shares during the last quarter. Private Trust Co. NA boosted its holdings in Dollar Tree by 11.6% in the first quarter. Private Trust Co. NA now owns 1,527 shares of the company's stock valued at $115,000 after purchasing an additional 159 shares during the last quarter. Cary Street Partners Financial LLC boosted its holdings in Dollar Tree by 8.5% in the first quarter. Cary Street Partners Financial LLC now owns 2,381 shares of the company's stock valued at $179,000 after purchasing an additional 186 shares during the last quarter. Finally, Amalgamated Bank boosted its holdings in Dollar Tree by 0.7% in the first quarter. Amalgamated Bank now owns 39,283 shares of the company's stock valued at $2,949,000 after purchasing an additional 265 shares during the last quarter. 97.40% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Dollar Tree

In related news, Director Stephanie Stahl sold 1,185 shares of the company's stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $100.32, for a total transaction of $118,879.20. Following the completion of the transaction, the director owned 4,089 shares in the company, valued at $410,208.48. This represents a 22.47% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 6.60% of the stock is currently owned by company insiders.

Dollar Tree Price Performance

Shares of DLTR traded down $3.10 during mid-day trading on Tuesday, hitting $96.30. 7,917,094 shares of the company were exchanged, compared to its average volume of 4,351,186. Dollar Tree, Inc. has a 1-year low of $60.49 and a 1-year high of $118.06. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.27 and a current ratio of 1.04. The company has a 50 day moving average of $110.32 and a 200-day moving average of $91.49. The stock has a market cap of $19.64 billion, a price-to-earnings ratio of -7.10, a price-to-earnings-growth ratio of 1.81 and a beta of 0.89.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last released its quarterly earnings results on Wednesday, September 3rd. The company reported $0.77 earnings per share for the quarter, topping the consensus estimate of $0.38 by $0.39. Dollar Tree had a negative net margin of 13.46% and a positive return on equity of 23.52%. The firm had revenue of $4.57 billion during the quarter, compared to the consensus estimate of $4.46 billion. During the same quarter in the prior year, the firm earned $0.67 EPS. The company's revenue for the quarter was up 12.3% on a year-over-year basis. Dollar Tree has set its FY 2025 guidance at 5.320-5.720 EPS. Analysts expect that Dollar Tree, Inc. will post 5.39 EPS for the current fiscal year.

Dollar Tree declared that its board has authorized a stock repurchase program on Wednesday, July 9th that authorizes the company to buyback $2.50 billion in shares. This buyback authorization authorizes the company to reacquire up to 11.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company's leadership believes its shares are undervalued.

Analysts Set New Price Targets

Several research firms have commented on DLTR. Piper Sandler lowered their price target on shares of Dollar Tree from $112.00 to $108.00 and set a "neutral" rating on the stock in a report on Thursday, September 4th. Wells Fargo & Company reissued an "overweight" rating on shares of Dollar Tree in a research note on Wednesday, September 3rd. BNP Paribas lowered shares of Dollar Tree from a "strong-buy" rating to a "hold" rating in a research note on Thursday, September 4th. Barclays raised shares of Dollar Tree from an "equal weight" rating to an "overweight" rating and increased their target price for the stock from $95.00 to $138.00 in a research note on Monday, July 21st. Finally, Guggenheim lowered their target price on shares of Dollar Tree from $130.00 to $125.00 and set a "buy" rating on the stock in a research note on Monday. Eight equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $108.26.

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.