United Services Automobile Association Invests $384,000 in Dollar Tree, Inc. $DLTR

Key Points

• United Services Automobile Association invested approximately $384,000 in Dollar Tree by acquiring 5,285 shares during the first quarter of 2023.
• Dollar Tree recently reported a 12.3% year-over-year revenue increase to $4.57 billion and an earnings per share (EPS) of $0.77, exceeding analysts' expectations.
• The company's board authorized a $2.50 billion share repurchase program, indicating confidence in the stock's valuation.

United Services Automobile Association purchased a new position in Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 5,285 shares of the company's stock, valued at approximately $384,000.

Several other hedge funds have also recently modified their holdings of DLTR. Mercer Global Advisors Inc. ADV raised its stake in shares of Dollar Tree by 6.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 4,656 shares of the company's stock worth $349,000 after purchasing an additional 292 shares during the last quarter. Focus Partners Wealth raised its stake in shares of Dollar Tree by 16.3% in the fourth quarter. Focus Partners Wealth now owns 10,433 shares of the company's stock worth $782,000 after purchasing an additional 1,465 shares during the last quarter. Graham Capital Management L.P. purchased a new position in shares of Dollar Tree in the fourth quarter worth $387,000. Gotham Asset Management LLC raised its stake in shares of Dollar Tree by 72.6% in the fourth quarter. Gotham Asset Management LLC now owns 44,621 shares of the company's stock worth $3,344,000 after purchasing an additional 18,764 shares during the last quarter. Finally, Laird Norton Wetherby Wealth Management LLC purchased a new position in shares of Dollar Tree in the fourth quarter worth $219,000. Hedge funds and other institutional investors own 97.40% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on DLTR shares. BMO Capital Markets upped their price objective on Dollar Tree from $80.00 to $85.00 and gave the company a "market perform" rating in a research report on Thursday, June 5th. Telsey Advisory Group reiterated an "outperform" rating and set a $130.00 price objective on shares of Dollar Tree in a research report on Thursday, September 4th. The Goldman Sachs Group cut Dollar Tree from a "strong-buy" rating to a "strong sell" rating in a research report on Thursday, June 5th. Piper Sandler reduced their price objective on Dollar Tree from $112.00 to $108.00 and set a "neutral" rating for the company in a research report on Thursday, September 4th. Finally, Bank of America upped their price objective on Dollar Tree from $70.00 to $75.00 and gave the company an "underperform" rating in a research report on Thursday, September 4th. Eight equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $109.28.

Dollar Tree Stock Performance

NASDAQ:DLTR opened at $99.39 on Friday. The stock has a 50-day simple moving average of $110.19 and a two-hundred day simple moving average of $91.71. Dollar Tree, Inc. has a 52-week low of $60.49 and a 52-week 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 firm has a market capitalization of $20.27 billion, a PE ratio of -7.32, a P/E/G ratio of 1.80 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 (EPS) for the quarter, beating the consensus estimate of $0.38 by $0.39. Dollar Tree had a positive return on equity of 23.52% and a negative net margin of 13.46%.The business had revenue of $4.57 billion during the quarter, compared to analyst estimates of $4.46 billion. During the same quarter in the previous year, the company posted $0.67 earnings per share. Dollar Tree'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 forecast that Dollar Tree, Inc. will post 5.39 EPS for the current year.

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

Insider Transactions at Dollar Tree

In other Dollar Tree news, Director Stephanie Stahl sold 1,185 shares of the business's stock in a transaction dated Friday, September 5th. The stock was sold at an average price of $100.32, for a total transaction of $118,879.20. Following the completion of the sale, the director owned 4,089 shares of the company's stock, valued at approximately $410,208.48. The trade was a 22.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 6.60% of the company's stock.

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.

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