Sound Income Strategies LLC Purchases 125,298 Shares of Dollar Tree, Inc. $DLTR

Key Points

• Sound Income Strategies LLC acquired 125,298 Dollar Tree shares during the third quarter, worth approximately $14.3 million and representing 0.07% of the company. Institutional investors collectively own 97.4% of DLTR.
• Dollar Tree reported quarterly revenue of $4.89 billion and adjusted earnings of $2.70 per share, exceeding analyst expectations, while revenue rose 7% year over year. The company also authorized a $2.5 billion share repurchase program.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $131.83; the stock recently traded at $118.64, below that target.

Sound Income Strategies LLC acquired a new stake in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 125,298 shares of the company's stock, valued at approximately $14,286,000. Sound Income Strategies LLC owned 0.07% of Dollar Tree at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Reflection Asset Management bought a new stake in shares of Dollar Tree in the fourth quarter worth about $25,000. Basecamp Wealth Advisors LLC lifted its holdings in Dollar Tree by 59.9% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 259 shares of the company's stock worth $28,000 after buying an additional 97 shares during the period. Wilkerson Advisory Group LLC lifted its holdings in Dollar Tree by 80.1% in the 1st quarter. Wilkerson Advisory Group LLC now owns 263 shares of the company's stock worth $29,000 after buying an additional 117 shares during the period. EFG International AG bought a new stake in shares of Dollar Tree in the 2nd quarter worth approximately $30,000. Finally, Keating Financial Advisory Services Inc. bought a new stake in shares of Dollar Tree in the 2nd quarter worth approximately $33,000. 97.40% of the stock is owned by institutional investors.

Dollar Tree Stock Up 0.0%

Shares of DLTR stock traded up $0.02 during trading hours on Friday, hitting $118.64. 1,395,766 shares of the company's stock traded hands, compared to its average volume of 3,166,371. The company has a quick ratio of 0.39, a current ratio of 1.13 and a debt-to-equity ratio of 0.86. The stock's fifty day simple moving average is $123.20 and its two-hundred day simple moving average is $114.31. Dollar Tree, Inc. has a 12-month low of $85.88 and a 12-month high of $142.40. The stock has a market cap of $22.26 billion, a price-to-earnings ratio of 14.49, a PEG ratio of 1.08 and a beta of 0.71.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its quarterly earnings results on Thursday, August 27th. The company reported $2.70 earnings per share for the quarter, topping the consensus estimate of $1.15 by $1.55. Dollar Tree had a return on equity of 38.61% and a net margin of 8.03%. The company had revenue of $4.89 billion for the quarter, compared to the consensus estimate of $4.86 billion. During the same quarter in the prior year, the business posted $0.77 EPS. The firm's quarterly 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. On average, analysts expect that Dollar Tree, Inc. will post 7.93 EPS for the current year.

Dollar Tree declared that its Board of Directors has initiated a share repurchase plan on Thursday, July 2nd that allows the company to buy back $2.50 billion in shares. This buyback authorization allows the company to reacquire up to 10.7% of its shares through open market purchases. Share buyback plans are usually an indication that the company's management believes its shares are undervalued.

Insider Transactions at Dollar Tree

In other news, Director Stephanie Stahl sold 1,185 shares of the company's stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $131.47, for a total value of $155,791.95. Following the transaction, the director owned 4,089 shares in the company, valued at approximately $537,580.83. This represents a 22.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Robert Aflatooni sold 2,500 shares of the stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $126.01, for a total transaction of $315,025.00. Following the sale, the insider owned 24,820 shares in the company, valued at approximately $3,127,568.20. The trade was a 9.15% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 7.10% of the company's stock.

Analyst Ratings Changes

DLTR has been the topic of a number of research analyst reports. BMO Capital Markets reissued a "market perform" rating and set a $135.00 price objective on shares of Dollar Tree in a research report on Friday, August 28th. Jefferies Financial Group raised shares of Dollar Tree from a "moderate sell" rating to a "buy" rating in a research note on Wednesday, July 8th. Wells Fargo & Company lifted their price objective on Dollar Tree from $145.00 to $155.00 and gave the company an "overweight" rating in a research report on Monday, August 17th. The Goldman Sachs Group reiterated a "neutral" rating and set a $131.00 target price on shares of Dollar Tree in a report on Monday, August 31st. Finally, Morgan Stanley raised their target price on Dollar Tree from $130.00 to $145.00 and gave the company an "equal weight" rating in a research note on Friday, August 28th. Eleven equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $131.83.

About Dollar Tree

Dollar Tree, Inc operates discount variety stores under the Dollar Tree brand in the United States and Canada. Its stores offer a broad selection of everyday merchandise, including household supplies, food and beverages, health and personal-care products, seasonal items, toys, party supplies, and arts and crafts products.

The company's Dollar Tree stores historically focused on merchandise priced at a fixed dollar point and have expanded to include multiple price points through initiatives such as Dollar Tree Plus.

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