Dollar Tree (NASDAQ:DLTR) Stock Price Up 4.3% - What's Next?

Key Points

• Dollar Tree shares rose 4.3% to approximately $121.24 in mid-day trading, although volume was 73% below the average session level.
• Analysts have raised several price targets, including Morgan Stanley at $145 and Wells Fargo at $155, but the overall consensus remains “Hold” with an average target of $131.83.
• The company reported quarterly EPS of $2.70, well above the $1.15 consensus estimate, while revenue increased 7% year over year to $4.89 billion. Dollar Tree also authorized a $2.5 billion share-buyback program covering up to 10.7% of outstanding shares.

Dollar Tree, Inc. (NASDAQ:DLTR - Get Free Report) shares traded up 4.3% during mid-day trading on Wednesday. The company traded as high as $120.66 and last traded at $121.2420. Approximately 845,703 shares changed hands during trading, a decline of 73% from the average session volume of 3,138,087 shares. The stock had previously closed at $116.28.

Analysts Set New Price Targets

DLTR has been the subject of a number of recent analyst reports. Morgan Stanley upped their price target on Dollar Tree from $130.00 to $145.00 and gave the company an "equal weight" rating in a research note on Friday, August 28th. BMO Capital Markets reissued a "market perform" rating and issued a $135.00 price target on shares of Dollar Tree in a report on Friday, August 28th. The Goldman Sachs Group reissued a "neutral" rating and issued a $131.00 price target on shares of Dollar Tree in a report on Monday, August 31st. Wells Fargo & Company upped their price objective on shares of Dollar Tree from $145.00 to $155.00 and gave the company an "overweight" rating in a research report on Monday, August 17th. Finally, Jefferies Financial Group upgraded Dollar Tree from a "moderate sell" rating to a "buy" rating in a report on Wednesday, July 8th. Eleven research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, Dollar Tree has an average rating of "Hold" and an average price target of $131.83.

Dollar Tree Stock Performance

The company has a debt-to-equity ratio of 0.86, a current ratio of 1.13 and a quick ratio of 0.39. The stock's 50 day simple moving average is $122.67 and its two-hundred day simple moving average is $114.49. The stock has a market cap of $22.69 billion, a P/E ratio of 14.78, a price-to-earnings-growth ratio of 1.09 and a beta of 0.71.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last issued its quarterly earnings data on Thursday, August 27th. The company reported $2.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.15 by $1.55. Dollar Tree had a net margin of 8.03% and a return on equity of 38.61%. The company had revenue of $4.89 billion during the quarter, compared to the consensus estimate of $4.86 billion. During the same quarter in the prior year, the firm earned $0.77 earnings per share. The firm's revenue was up 7.0% compared to the same quarter last year. Dollar Tree has set its Q3 2026 guidance at 0.800-0.950 EPS and its FY 2026 guidance at 7.700-8.050 EPS. As a group, research analysts forecast that Dollar Tree, Inc. will post 7.93 EPS for the current year.

Dollar Tree declared that its Board of Directors has authorized a share buyback program on Thursday, July 2nd that authorizes the company to repurchase $2.50 billion in shares. This repurchase authorization authorizes the company to reacquire up to 10.7% of its stock through open market purchases. Share repurchase programs are often a sign that the company's management believes its stock is undervalued.

Insider Transactions at Dollar Tree

In other news, insider Robert Aflatooni sold 2,500 shares of the business's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $126.01, for a total value of $315,025.00. Following the sale, the insider directly owned 24,820 shares in the company, valued at $3,127,568.20. The trade was a 9.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Stephanie Stahl sold 1,185 shares of the company's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $131.47, for a total value of $155,791.95. Following the transaction, the director directly owned 4,089 shares of the company's stock, valued at $537,580.83. This represents a 22.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 7.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Dollar Tree

Several institutional investors have recently bought and sold shares of the company. Reflection Asset Management acquired a new position in shares of Dollar Tree in the fourth quarter valued at approximately $25,000. Basecamp Wealth Advisors LLC increased its stake in shares of Dollar Tree by 59.9% during the first quarter. Basecamp Wealth Advisors LLC now owns 259 shares of the company's stock worth $28,000 after purchasing an additional 97 shares during the period. EFG International AG acquired a new stake in Dollar Tree during the 2nd quarter worth approximately $30,000. Wilkerson Advisory Group LLC lifted its holdings in Dollar Tree by 80.1% during the 1st quarter. Wilkerson Advisory Group LLC now owns 263 shares of the company's stock worth $29,000 after purchasing an additional 117 shares during the last quarter. Finally, Keating Financial Advisory Services Inc. bought a new stake in Dollar Tree in the 2nd quarter valued at $33,000. Institutional investors own 97.40% of the company's stock.

About Dollar Tree

Dollar Tree, Inc operates discount variety stores under the Dollar Tree brand in the United States and Canada. Its stores offer a broad selection of everyday merchandise, including household supplies, food and beverages, health and personal-care products, seasonal items, toys, party supplies, and arts and crafts products.

The company's Dollar Tree stores historically focused on merchandise priced at a fixed dollar point and have expanded to include multiple price points through initiatives such as Dollar Tree Plus.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.