Guggenheim Issues Pessimistic Forecast for Dollar Tree (NASDAQ:DLTR) Stock Price

Key Points

• Guggenheim has downgraded its price target for Dollar Tree (NASDAQ: DLTR) from $130.00 to $125.00, while maintaining a "buy" rating, indicating a potential upside of 28.04% from the current price.
• The company has reported strong quarterly earnings, posting $0.77 EPS, beating estimates significantly, with a revenue increase of 12.3% year over year.
• Dollar Tree has initiated a $2.50 billion share buyback program, signaling management's belief that the stock is currently undervalued.

Dollar Tree (NASDAQ:DLTR - Get Free Report) had its price target decreased by investment analysts at Guggenheim from $130.00 to $125.00 in a report released on Monday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Guggenheim's price objective would indicate a potential upside of 28.04% from the stock's current price.

DLTR has been the topic of several other research reports. UBS Group reissued a "buy" rating and set a $140.00 price objective on shares of Dollar Tree in a report on Tuesday, August 26th. BNP Paribas lowered Dollar Tree from a "strong-buy" rating to a "hold" rating in a research note on Thursday. Gordon Haskett downgraded Dollar Tree from a "hold" rating to a "reduce" rating and set a $95.00 target price for the company. in a research report on Wednesday, September 3rd. Jefferies Financial Group initiated coverage on Dollar Tree in a research report on Thursday, July 17th. They set a "hold" rating and a $106.00 target price for the company. Finally, 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 report on Thursday, June 5th. Eight analysts have rated the stock with a Buy rating, twelve have given a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $108.26.

Dollar Tree Trading Down 3.5%

NASDAQ:DLTR opened at $97.63 on Monday. Dollar Tree has a 1-year low of $60.49 and a 1-year high of $118.06. The firm has a market capitalization of $19.91 billion, a price-to-earnings ratio of -7.26, a price-to-earnings-growth ratio of 1.84 and a beta of 0.89. The company has a quick ratio of 0.27, a current ratio of 1.04 and a debt-to-equity ratio of 0.67. The stock has a fifty day simple moving average of $110.41 and a 200 day simple moving average of $91.28.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last issued its quarterly earnings data on Wednesday, September 3rd. The company reported $0.77 earnings per share for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $4.46 billion. During the same period last year, the business earned $0.67 EPS. The firm's revenue was up 12.3% compared to the same quarter last year. Dollar Tree has set its FY 2025 guidance at 5.320-5.720 EPS. Sell-side analysts forecast that Dollar Tree will post 5.39 earnings per share for the current year.

Dollar Tree declared that its Board of Directors has authorized a share buyback program on Wednesday, July 9th that permits the company to buyback $2.50 billion in outstanding shares. This buyback authorization permits the company to buy up to 11.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On Dollar Tree

A number of hedge funds have recently added to or reduced their stakes in DLTR. Horizon Investments LLC boosted its holdings in shares of Dollar Tree by 5.1% in the 1st quarter. Horizon Investments LLC now owns 2,905 shares of the company's stock valued at $218,000 after purchasing an additional 140 shares in the last quarter. Applied Finance Capital Management LLC lifted its holdings in Dollar Tree by 2.6% during the 2nd quarter. Applied Finance Capital Management LLC now owns 5,507 shares of the company's stock worth $545,000 after buying an additional 140 shares during the period. Compton Wealth Advisory Group LLC lifted its holdings in Dollar Tree by 0.4% during the 2nd quarter. Compton Wealth Advisory Group LLC now owns 34,561 shares of the company's stock worth $3,423,000 after buying an additional 148 shares during the period. Brooklyn Investment Group raised its position in shares of 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 in the last quarter. Finally, Private Trust Co. NA raised its position in shares of Dollar Tree by 11.6% in the 1st quarter. Private Trust Co. NA now owns 1,527 shares of the company's stock worth $115,000 after acquiring an additional 159 shares in the last quarter. Institutional investors own 97.40% of the company's stock.

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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