Telsey Advisory Group Estimates Dollar Tree FY2026 Earnings

Key Points

• Telsey Advisory Group has lowered its FY2026 earnings per share estimate for Dollar Tree to $5.58, down from $5.66, while maintaining an "Outperform" rating and a $130.00 price target for the stock.
• Dollar Tree's recent quarterly earnings report showed an EPS of $0.77, surpassing analysts' expectations of $0.38, alongside a revenue increase to $4.57 billion, marking a 12.3% year-over-year growth.
• The company has initiated a stock repurchase plan allowing for buybacks of up to $2.50 billion in shares, signaling management's belief that the stock is undervalued.

Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) - Equities researchers at Telsey Advisory Group decreased their FY2026 earnings per share estimates for shares of Dollar Tree in a research note issued to investors on Thursday, October 16th. Telsey Advisory Group analyst J. Feldman now expects that the company will post earnings of $5.58 per share for the year, down from their previous estimate of $5.66. Telsey Advisory Group has a "Outperform" rating and a $130.00 price objective on the stock. The consensus estimate for Dollar Tree's current full-year earnings is $5.39 per share. Telsey Advisory Group also issued estimates for Dollar Tree's Q4 2027 earnings at $2.81 EPS, FY2027 earnings at $6.59 EPS and FY2029 earnings at $8.22 EPS.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last released its earnings results on Wednesday, September 3rd. The company reported $0.77 EPS for the quarter, beating analysts' consensus estimates of $0.38 by $0.39. The company had revenue of $4.57 billion during the quarter, compared to analysts' expectations of $4.46 billion. Dollar Tree had a positive return on equity of 23.52% and a negative net margin of 13.46%.The firm's revenue for the quarter was up 12.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.67 EPS. Dollar Tree has set its FY 2025 guidance at 5.320-5.720 EPS.

A number of other equities analysts also recently issued reports on DLTR. Barclays upgraded Dollar Tree from an "equal weight" rating to an "overweight" rating and increased their price objective for the stock from $95.00 to $138.00 in a report on Monday, July 21st. New Street Research set a $103.00 price objective on Dollar Tree in a report on Thursday. Bank of America increased their price objective on Dollar Tree from $70.00 to $75.00 and gave the stock an "underperform" rating in a report on Thursday, September 4th. Wolfe Research initiated coverage on Dollar Tree in a research note on Thursday, September 18th. They issued a "peer perform" rating on the stock. Finally, Morgan Stanley upped their price target on Dollar Tree from $96.00 to $105.00 and gave the stock an "equal weight" rating in a research note on Friday, September 5th. Eight equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $109.00.

Dollar Tree Price Performance

DLTR opened at $96.44 on Monday. The stock has a fifty day simple moving average of $100.77 and a two-hundred day simple moving average of $96.37. The company has a current ratio of 1.04, a quick ratio of 0.27 and a debt-to-equity ratio of 0.67. The company has a market cap of $19.67 billion, a price-to-earnings ratio of -7.11, a price-to-earnings-growth ratio of 1.70 and a beta of 0.85. Dollar Tree has a 12-month low of $60.49 and a 12-month high of $118.06.

Dollar Tree declared that its board has initiated a stock repurchase plan 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 shares through open market purchases. Shares repurchase plans are generally a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling at Dollar Tree

In related news, Director Stephanie Stahl sold 1,185 shares of the company's stock in a transaction that occurred on Friday, September 5th. The stock was sold at an average price of $100.32, for a total value of $118,879.20. Following the transaction, the director directly owned 4,089 shares of the company's stock, valued at approximately $410,208.48. This represents a 22.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 6.60% of the stock is owned by insiders.

Hedge Funds Weigh In On Dollar Tree

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. LBP AM SA bought a new position in Dollar Tree in the 2nd quarter valued at approximately $7,742,000. Wealth Enhancement Advisory Services LLC lifted its position in Dollar Tree by 50.7% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 13,724 shares of the company's stock valued at $1,030,000 after acquiring an additional 4,619 shares in the last quarter. McGinn Penninger Investment Management Inc. lifted its position in Dollar Tree by 13.2% in the 1st quarter. McGinn Penninger Investment Management Inc. now owns 68,585 shares of the company's stock valued at $5,149,000 after acquiring an additional 8,015 shares in the last quarter. IFM Investors Pty Ltd lifted its position in Dollar Tree by 7.5% in the 2nd quarter. IFM Investors Pty Ltd now owns 38,021 shares of the company's stock valued at $3,766,000 after acquiring an additional 2,666 shares in the last quarter. Finally, Bastion Asset Management Inc. bought a new position in Dollar Tree in the 1st quarter valued at approximately $3,585,000. 97.40% of the stock is owned by institutional investors.

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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