Wealthquest Corp Invests $287,000 in Dollar Tree, Inc. (NASDAQ:DLTR)

Key Points

• Wealthquest Corp has invested $287,000 in Dollar Tree by acquiring 3,819 shares during the first quarter, as revealed in its recent SEC filing.
• Several institutional investors have significantly increased their holdings in Dollar Tree, with Kovitz Investment Group Partners LLC raising its position by 382.7% in the last quarter.
• Dollar Tree's board has approved a $2.5 billion stock repurchase program, indicating confidence from the leadership that the company's shares are undervalued.

Wealthquest Corp acquired a new position in shares of Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund acquired 3,819 shares of the company's stock, valued at approximately $287,000.

Several other institutional investors have also modified their holdings of DLTR. Kovitz Investment Group Partners LLC lifted its position in shares of Dollar Tree by 382.7% during the 4th quarter. Kovitz Investment Group Partners LLC now owns 6,524,870 shares of the company's stock worth $488,974,000 after buying an additional 5,173,238 shares during the last quarter. Marshall Wace LLP increased its holdings in shares of Dollar Tree by 784.2% in the 4th quarter. Marshall Wace LLP now owns 4,377,366 shares of the company's stock valued at $328,040,000 after acquiring an additional 3,882,324 shares during the period. Balyasny Asset Management L.P. increased its holdings in shares of Dollar Tree by 2,489.9% in the 4th quarter. Balyasny Asset Management L.P. now owns 2,621,456 shares of the company's stock valued at $196,452,000 after acquiring an additional 2,520,237 shares during the period. Capital International Investors increased its holdings in shares of Dollar Tree by 30.1% in the 4th quarter. Capital International Investors now owns 8,753,693 shares of the company's stock valued at $656,000,000 after acquiring an additional 2,023,819 shares during the period. Finally, Corvex Management LP increased its holdings in shares of Dollar Tree by 155.2% in the 4th quarter. Corvex Management LP now owns 2,886,735 shares of the company's stock valued at $216,332,000 after acquiring an additional 1,755,761 shares during the period. Hedge funds and other institutional investors own 97.40% of the company's stock.

Insider Activity at Dollar Tree

In related news, CMO Richard L. Mcneely sold 21,026 shares of the business's stock in a transaction dated 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 sale, the chief marketing officer directly owned 50,419 shares in the company, valued at $4,770,645.78. The trade was a 29.43% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 6.60% of the stock is owned by corporate insiders.

Dollar Tree Stock Performance

NASDAQ:DLTR opened at $113.55 on Friday. The company has a quick ratio of 0.72, a current ratio of 1.04 and a debt-to-equity ratio of 0.62. Dollar Tree, Inc. has a fifty-two week low of $60.49 and a fifty-two week high of $115.99. The stock has a market cap of $23.70 billion, a PE ratio of -8.19, a price-to-earnings-growth ratio of 2.45 and a beta of 0.86. The firm's fifty day simple moving average is $101.45 and its 200-day simple moving average is $84.03.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its quarterly earnings results on Wednesday, June 4th. The company reported $1.26 earnings per share for the quarter, topping analysts' consensus estimates of $1.21 by $0.05. Dollar Tree had a negative net margin of 12.15% and a positive return on equity of 19.36%. The business had revenue of $4.64 billion for the quarter, compared to analysts' expectations of $4.52 billion. During the same period in the prior year, the company posted $1.43 EPS. The business's revenue for the quarter was up 11.3% on a year-over-year basis. Analysts expect that Dollar Tree, Inc. will post 5.39 earnings per share for the current fiscal year.

Dollar Tree announced that its board has approved a stock repurchase program on Wednesday, July 9th that allows the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization allows the company to repurchase up to 11.5% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on DLTR shares. JPMorgan Chase & Co. lifted their target price on shares of Dollar Tree from $111.00 to $138.00 and gave the company an "overweight" rating in a report on Monday, July 21st. Citigroup raised shares of Dollar Tree from a "neutral" rating to a "buy" rating and lifted their target price for the company from $76.00 to $103.00 in a report on Monday, April 7th. Telsey Advisory Group reaffirmed a "market perform" rating and issued a $95.00 target price on shares of Dollar Tree in a report on Wednesday, June 4th. Bank of America cut their target price on shares of Dollar Tree from $75.00 to $70.00 and set an "underperform" rating on the stock in a report on Tuesday, April 8th. Finally, Piper Sandler lifted their target price on shares of Dollar Tree from $72.00 to $93.00 and gave the company a "neutral" rating in a report on Thursday, June 5th. Two research analysts have rated the stock with a sell rating, thirteen have given a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $97.74.

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.

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