Share Buyback Program Declared by Dollar Tree (NASDAQ:DLTR) Board of Directors

Dollar Tree (NASDAQ:DLTR - Get Free Report) announced that its board has approved a stock buyback plan on Wednesday, July 9th, RTT News reports. The company plans to buyback $2.50 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 11.5% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its shares are undervalued.

Dollar Tree Stock Up 0.3%

Dollar Tree stock traded up $0.36 on Wednesday, hitting $104.75. 1,701,823 shares of the stock traded hands, compared to its average volume of 4,225,783. The company has a current ratio of 1.04, a quick ratio of 0.72 and a debt-to-equity ratio of 0.62. The firm has a market cap of $21.86 billion, a P/E ratio of -7.56, a price-to-earnings-growth ratio of 2.24 and a beta of 0.86. The business's fifty day simple moving average is $92.83 and its 200 day simple moving average is $79.72. Dollar Tree has a 1 year low of $60.49 and a 1 year high of $108.93.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last announced its quarterly earnings data on Wednesday, June 4th. The company reported $1.26 EPS for the quarter, beating the consensus estimate of $1.21 by $0.05. The business had revenue of $4.64 billion during the quarter, compared to analyst estimates of $4.52 billion. Dollar Tree had a positive return on equity of 19.36% and a negative net margin of 12.15%. The company's revenue for the quarter was up 11.3% on a year-over-year basis. During the same quarter last year, the firm posted $1.43 earnings per share. As a group, sell-side analysts forecast that Dollar Tree will post 5.39 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. The Goldman Sachs Group downgraded shares of Dollar Tree from a "strong-buy" rating to a "strong sell" rating in a report on Thursday, June 5th. Loop Capital reissued a "hold" rating on shares of Dollar Tree in a report on Thursday, March 27th. Bank of America lowered their price target 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. Telsey Advisory Group reissued a "market perform" rating and issued a $95.00 price target on shares of Dollar Tree in a report on Wednesday, June 4th. Finally, Truist Financial upped their price objective on shares of Dollar Tree from $89.00 to $100.00 and gave the stock a "buy" rating in a research report on Monday, June 2nd. Two research analysts have rated the stock with a sell rating, fourteen have issued a hold rating and six have given a buy rating to the company. Based on data from MarketBeat.com, Dollar Tree presently has a consensus rating of "Hold" and an average target price of $90.37.

Insider Activity

In other news, CAO Aditya Maheshwari sold 1,238 shares of the company's stock in a transaction dated Monday, April 14th. The shares were sold at an average price of $74.70, for a total transaction of $92,478.60. Following the completion of the sale, the chief accounting officer owned 4,231 shares of the company's stock, valued at $316,055.70. This represents a 22.64% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CMO Richard L. Mcneely sold 21,026 shares of the company's stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $94.62, for a total transaction of $1,989,480.12. Following the sale, the chief marketing officer directly owned 50,419 shares of the company's stock, valued at $4,770,645.78. The trade was a 29.43% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 22,439 shares of company stock valued at $2,099,028. 6.60% of the stock is owned by insiders.

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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