Dollar Tree (NASDAQ:DLTR) Authorizes Share Buyback Program

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Piper Sandler boosted their price objective on Dollar Tree from $72.00 to $93.00 and gave the company a "neutral" rating in a research note on Thursday, June 5th. The Goldman Sachs Group cut Dollar Tree from a "strong-buy" rating to a "strong sell" rating in a research note on Thursday, June 5th. BMO Capital Markets boosted their price objective on Dollar Tree from $80.00 to $85.00 and gave the company a "market perform" rating in a research note on Thursday, June 5th. Cfra Research upgraded Dollar Tree to a "hold" rating in a research note on Wednesday, May 28th. Finally, Telsey Advisory Group restated a "market perform" rating and set a $95.00 price target on shares of Dollar Tree in a research note on Wednesday, June 4th. Two analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and six have assigned a buy rating to the company. According to MarketBeat.com, Dollar Tree currently has an average rating of "Hold" and an average price target of $90.37.

Dollar Tree Price Performance

Dollar Tree stock traded up $3.62 during trading hours on Thursday, hitting $108.37. The stock had a trading volume of 3,667,433 shares, compared to its average volume of 4,223,767. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.04 and a quick ratio of 0.72. The stock has a market capitalization of $22.62 billion, a price-to-earnings ratio of -7.82, a PEG ratio of 2.24 and a beta of 0.86. Dollar Tree has a 1-year low of $60.49 and a 1-year high of $108.93. The stock's fifty day moving average is $93.29 and its two-hundred day moving average is $79.89.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its quarterly earnings data on Wednesday, June 4th. The company reported $1.26 EPS for the quarter, beating analysts' consensus estimates of $1.21 by $0.05. The business had revenue of $4.64 billion for 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 business's revenue for the quarter was up 11.3% compared to the same quarter last year. During the same quarter last year, the company earned $1.43 earnings per share. As a group, analysts predict that Dollar Tree will post 5.39 earnings per share for the current fiscal year.

Insiders Place Their Bets

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