Telsey Advisory Group Forecasts Dollar Tree Q2 Earnings

Key Points

• Telsey Advisory Group has raised its Q2 2027 earnings per share (EPS) estimate for Dollar Tree to $0.82, up from $0.76, while maintaining an "Outperform" rating and a price target of $130.00 for the stock.
• Dollar Tree recently achieved a quarterly EPS of $1.26, surpassing analyst expectations of $1.21, along with a revenue of $4.64 billion, which also exceeded predictions.
• The company authorized a $2.5 billion stock buyback program, indicating a belief that its shares are currently undervalued, allowing for the purchase of up to 11.5% of outstanding shares.

Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) - Equities research analysts at Telsey Advisory Group upped their Q2 2027 earnings per share (EPS) estimates for Dollar Tree in a note issued to investors on Friday, August 29th. Telsey Advisory Group analyst J. Feldman now anticipates that the company will earn $0.82 per share for the quarter, up from their previous estimate of $0.76. Telsey Advisory Group currently 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 Q3 2027 earnings at $1.48 EPS, Q4 2027 earnings at $2.71 EPS and FY2027 earnings at $6.50 EPS.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its quarterly earnings results on Wednesday, June 4th. The company reported $1.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.21 by $0.05. The company had revenue of $4.64 billion for the quarter, compared to analysts' expectations of $4.52 billion. Dollar Tree had a positive return on equity of 19.36% and a negative net margin of 12.15%.The firm's revenue was up 11.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.43 earnings per share. Dollar Tree has set its FY 2025 guidance at 5.150-5.650 EPS.

Several other analysts also recently issued reports on the stock. Sanford C. Bernstein set a $82.00 target price on shares of Dollar Tree and gave the company a "market perform" rating in a research note on Monday, May 5th. Guggenheim reissued a "buy" rating and set a $100.00 target price on shares of Dollar Tree in a research note on Thursday, June 5th. The Goldman Sachs Group downgraded shares of Dollar Tree from a "strong-buy" rating to a "strong sell" rating in a research note on Thursday, June 5th. Piper Sandler boosted their target price on shares of Dollar Tree from $93.00 to $112.00 and gave the company a "neutral" rating in a research note on Tuesday, August 19th. Finally, Wells Fargo & Company boosted their target price on shares of Dollar Tree from $105.00 to $130.00 and gave the company an "overweight" rating in a research note on Tuesday, July 22nd. Eight research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $104.53.

Dollar Tree Price Performance

Shares of NASDAQ:DLTR opened at $109.17 on Monday. The company's fifty day moving average is $109.87 and its two-hundred day moving average is $90.20. The company has a quick ratio of 0.72, a current ratio of 1.04 and a debt-to-equity ratio of 0.62. Dollar Tree has a 12-month low of $60.49 and a 12-month high of $118.06. The company has a market cap of $22.78 billion, a P/E ratio of -7.88, a price-to-earnings-growth ratio of 2.32 and a beta of 0.89.

Institutional Investors Weigh In On Dollar Tree

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Wealth Enhancement Advisory Services LLC increased its stake in shares of Dollar Tree by 50.7% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 13,724 shares of the company's stock worth $1,030,000 after purchasing an additional 4,619 shares during the last quarter. McGinn Penninger Investment Management Inc. increased its stake in shares of Dollar Tree by 13.2% during the 1st quarter. McGinn Penninger Investment Management Inc. now owns 68,585 shares of the company's stock worth $5,149,000 after purchasing an additional 8,015 shares during the last quarter. Bastion Asset Management Inc. acquired a new position in shares of Dollar Tree during the 1st quarter worth about $3,585,000. Empower Advisory Group LLC increased its stake in shares of Dollar Tree by 8.0% during the 1st quarter. Empower Advisory Group LLC now owns 821,288 shares of the company's stock worth $61,654,000 after purchasing an additional 60,865 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. increased its stake in shares of Dollar Tree by 6.2% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,471,865 shares of the company's stock worth $110,493,000 after purchasing an additional 85,508 shares during the last quarter. 97.40% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Dollar Tree

In related news, CMO Richard L. Mcneely sold 21,026 shares of the firm's stock in a transaction on 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 in the company, valued at $4,770,645.78. This trade represents a 29.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 6.60% of the stock is currently owned by insiders.

Dollar Tree declared that its board has authorized a stock repurchase program on Wednesday, July 9th that permits the company to buyback $2.50 billion in outstanding shares. This buyback authorization permits the company to purchase up to 11.5% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Dollar Tree Company Profile

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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