T. Rowe Price Investment Management Inc. Grows Stock Position in Dollar Tree, Inc. $DLTR

Key Points

• T. Rowe Price Investment Management Inc. increased its stake in Dollar Tree by 0.7%, holding approximately 9.99 million shares valued at $750.3 million.
• Dollar Tree's board authorized a share repurchase plan to buy back $2.5 billion worth of shares, reflecting confidence in the company's valuation.
• The company reported earnings per share of $1.26 for the last quarter, beating analysts' estimates, with revenue increasing 11.3% year-over-year.

T. Rowe Price Investment Management Inc. increased its position in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) by 0.7% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 9,994,978 shares of the company's stock after acquiring an additional 74,230 shares during the period. T. Rowe Price Investment Management Inc. owned approximately 4.65% of Dollar Tree worth $750,323,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in DLTR. Brooklyn Investment Group raised its stake in Dollar Tree by 79.0% in the 1st quarter. Brooklyn Investment Group now owns 358 shares of the company's stock worth $27,000 after acquiring an additional 158 shares during the last quarter. Zions Bancorporation National Association UT purchased a new position in shares of Dollar Tree during the 1st quarter valued at about $30,000. CX Institutional purchased a new position in shares of Dollar Tree during the 1st quarter valued at about $43,000. Sentry Investment Management LLC purchased a new position in shares of Dollar Tree during the 1st quarter valued at about $48,000. Finally, GeoWealth Management LLC purchased a new position in shares of Dollar Tree during the 4th quarter valued at about $61,000. Hedge funds and other institutional investors own 97.40% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have weighed in on the company. Jefferies Financial Group assumed coverage on Dollar Tree in a research note on Thursday, July 17th. They set a "hold" rating and a $106.00 price objective for the company. Telsey Advisory Group reiterated a "market perform" rating and set a $95.00 price objective on shares of Dollar Tree in a research note on Wednesday, June 4th. Guggenheim reiterated a "buy" rating and set a $100.00 price objective on shares of Dollar Tree in a research note on Thursday, June 5th. Wells Fargo & Company lifted their price objective on Dollar Tree from $105.00 to $130.00 and gave the company an "overweight" rating in a research note on Tuesday, July 22nd. Finally, Morgan Stanley lifted their price objective on Dollar Tree from $80.00 to $96.00 and gave the company an "equal weight" rating in a research note on Thursday, June 5th. Seven investment 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 MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $100.89.

Dollar Tree Price Performance

DLTR stock traded up $0.73 during trading on Friday, hitting $113.32. The stock had a trading volume of 2,223,637 shares, compared to its average volume of 2,995,577. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.04 and a quick ratio of 0.72. Dollar Tree, Inc. has a twelve month low of $60.49 and a twelve month high of $118.06. The stock has a market capitalization of $23.65 billion, a P/E ratio of -8.18, a PEG ratio of 2.42 and a beta of 0.88. The company's 50-day moving average price is $108.53 and its two-hundred day moving average price is $88.74.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its quarterly earnings data on Wednesday, June 4th. The company reported $1.26 earnings per share (EPS) 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 company had revenue of $4.64 billion for the quarter, compared to analysts' expectations of $4.52 billion. During the same period in the previous year, the firm posted $1.43 EPS. Dollar Tree's revenue 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, research analysts predict that Dollar Tree, Inc. will post 5.39 EPS for the current fiscal year.

Dollar Tree announced that its board has approved 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 shares through open market purchases. Shares buyback plans are generally an indication that the company's board believes its shares are undervalued.

Insiders Place Their Bets

In other Dollar Tree news, CMO Richard L. Mcneely sold 21,026 shares of the firm's stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $94.62, for a total value of $1,989,480.12. Following the transaction, the chief marketing officer directly owned 50,419 shares of the company's stock, valued at $4,770,645.78. This trade represents a 29.43% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 6.60% of the stock is owned by company insiders.

Dollar Tree Company 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.