Wealthfront Advisers LLC Makes New Investment in Dollar Tree, Inc. $DLTR

Key Points

• Wealthfront Advisers purchased 23,196 Dollar Tree shares worth approximately $2.8 million in the second quarter. Institutional investors own 97.4% of the company, with BlackRock and Pzena also establishing substantial new positions.
• Analysts have a mixed view of Dollar Tree, resulting in an overall “Hold” rating and an average price target of $123.41. Ratings range from Buy to Sell, with recent price-target revisions varying widely.
• Dollar Tree exceeded quarterly earnings expectations, reporting $1.74 in EPS versus the $1.53 consensus and $4.98 billion in revenue. The company also authorized a $2.5 billion share-repurchase program, covering up to 10.7% of outstanding shares.

Wealthfront Advisers LLC bought a new stake in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 23,196 shares of the company's stock, valued at approximately $2,806,000.

Several other hedge funds and other institutional investors have also recently modified their holdings of DLTR. BlackRock Inc. bought a new stake in shares of Dollar Tree in the second quarter worth $2,643,741,000. Pzena Investment Management LLC bought a new position in Dollar Tree in the second quarter valued at about $1,176,661,000. State Street Corp boosted its position in Dollar Tree by 3.5% in the third quarter. State Street Corp now owns 9,421,856 shares of the company's stock worth $889,141,000 after purchasing an additional 319,938 shares during the last quarter. Alliancebernstein L.P. boosted its position in Dollar Tree by 176.9% in the second quarter. Alliancebernstein L.P. now owns 3,746,222 shares of the company's stock worth $371,026,000 after purchasing an additional 2,393,172 shares during the last quarter. Finally, Invesco Ltd. grew its stake in shares of Dollar Tree by 1.5% during the 4th quarter. Invesco Ltd. now owns 2,719,303 shares of the company's stock valued at $334,501,000 after purchasing an additional 39,506 shares during the period. 97.40% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several equities research analysts have recently commented on DLTR shares. Deutsche Bank Aktiengesellschaft upped their price target on shares of Dollar Tree from $99.00 to $102.00 and gave the company a "hold" rating in a research report on Thursday, June 4th. Bank of America restated an "underperform" rating on shares of Dollar Tree in a research report on Thursday, May 28th. Wall Street Zen downgraded shares of Dollar Tree from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Truist Financial dropped their price target on shares of Dollar Tree from $142.00 to $107.00 and set a "buy" rating on the stock in a research note on Wednesday, May 27th. Finally, Morgan Stanley boosted their price objective on shares of Dollar Tree from $126.00 to $130.00 and gave the company an "equal weight" rating in a research report on Friday, May 29th. Ten analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $123.41.

Dollar Tree Trading Down 2.6%

Dollar Tree stock opened at $128.45 on Friday. The firm has a 50 day moving average of $123.58 and a 200 day moving average of $114.25. The firm has a market capitalization of $24.69 billion, a price-to-earnings ratio of 20.07, a P/E/G ratio of 1.50 and a beta of 0.64. Dollar Tree, Inc. has a 12-month low of $84.71 and a 12-month high of $142.40. The company has a current ratio of 1.16, a quick ratio of 0.39 and a debt-to-equity ratio of 0.84.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The company reported $1.74 earnings per share for the quarter, beating the consensus estimate of $1.53 by $0.21. The business had revenue of $4.98 billion for the quarter, compared to the consensus estimate of $4.96 billion. Dollar Tree had a net margin of 6.51% and a return on equity of 35.19%. The company's revenue for the quarter was up 7.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.26 earnings per share. Dollar Tree has set its Q2 2026 guidance at 1.000-1.150 EPS. As a group, research analysts predict that Dollar Tree, Inc. will post 7 earnings per share for the current year.

Dollar Tree declared that its board has authorized a share repurchase program on Thursday, July 2nd that allows the company to repurchase $2.50 billion in shares. This repurchase authorization allows the company to reacquire up to 10.7% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

About Dollar Tree

Dollar Tree, Inc is a North American discount retailer that operates a portfolio of value-oriented store banners, primarily Dollar Tree and Family Dollar. The company's stores offer a broad assortment of everyday items at low price points, including household essentials, food and snacks, health and beauty products, cleaning supplies, seasonal and party goods, home décor, and basic apparel. Dollar Tree's merchandising strategy emphasizes high-turnover branded and private-label merchandise tailored to budget-conscious consumers, with Family Dollar complementing the chain by offering a wider range of price points and assortment depth in smaller-format neighborhood locations.

Founded in 1986 and headquartered in Chesapeake, Virginia, Dollar Tree has grown through both organic store openings and acquisitions.

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