Dollar Tree (NASDAQ:DLTR) Earns Buy Rating from Truist Financial

Key Points

• Truist Financial raised its price target for Dollar Tree's stock from $109.00 to $127.00, indicating a potential upside of 11.64%.
• Despite positive remarks from several analysts, Dollar Tree's stock currently holds a consensus rating of "Hold" and an average target price of $99.89.
• The company has approved a $2.5 billion stock repurchase program, allowing it to buy back up to 11.5% of its outstanding shares, reflecting confidence in its share valuation.

Dollar Tree (NASDAQ:DLTR - Get Free Report)'s stock had its "buy" rating restated by equities research analysts at Truist Financial in a note issued to investors on Wednesday, MarketBeat reports. They presently have a $127.00 price target on the stock, up from their previous price target of $109.00. Truist Financial's price objective points to a potential upside of 12.00% from the company's previous close.

DLTR has been the topic of a number of other research reports. Cfra Research raised Dollar Tree to a "hold" rating in a research note on Wednesday, May 28th. Piper Sandler boosted their price target on Dollar Tree from $72.00 to $93.00 and gave the company a "neutral" rating in a report on Thursday, June 5th. UBS Group boosted their price target on Dollar Tree from $95.00 to $108.00 and gave the company a "buy" rating in a report on Thursday, May 29th. Evercore ISI boosted their price target on Dollar Tree from $104.00 to $108.00 and gave the company an "in-line" rating in a report on Tuesday. Finally, JPMorgan Chase & Co. upped their price objective on Dollar Tree from $111.00 to $138.00 and gave the stock an "overweight" rating in a report on Monday, July 21st. Two research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and seven have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, Dollar Tree currently has a consensus rating of "Hold" and an average price target of $99.89.

Dollar Tree Stock Performance

DLTR stock traded down $1.24 during trading on Wednesday, hitting $113.39. The company had a trading volume of 810,302 shares, compared to its average volume of 4,119,530. The firm has a market cap of $23.67 billion, a PE ratio of -8.17, a price-to-earnings-growth ratio of 2.47 and a beta of 0.88. Dollar Tree has a 1-year low of $60.49 and a 1-year high of $118.06. The firm has a 50-day moving average price of $106.32 and a 200-day moving average price of $87.02. 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 (NASDAQ:DLTR - Get Free Report) last announced its quarterly earnings data on Wednesday, June 4th. The company reported $1.26 earnings per share for the quarter, beating analysts' consensus estimates of $1.21 by $0.05. Dollar Tree had a positive return on equity of 19.36% and a negative net margin of 12.15%. The company had revenue of $4.64 billion for the quarter, compared to analyst estimates of $4.52 billion. During the same quarter in the previous year, the company earned $1.43 EPS. The firm's revenue for the quarter was up 11.3% compared to the same quarter last year. On average, analysts expect that Dollar Tree will post 5.39 earnings per share for the current year.

Dollar Tree declared that its Board of Directors has initiated a share buyback program on Wednesday, July 9th that allows the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization allows the company to buy up to 11.5% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's leadership believes its stock is undervalued.

Insider Transactions at Dollar Tree

In other Dollar Tree news, CMO Richard L. Mcneely sold 21,026 shares of the firm's stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $94.62, for a total value of $1,989,480.12. Following the sale, the chief marketing officer owned 50,419 shares in the company, valued at approximately $4,770,645.78. This trade represents a 29.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 6.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Dollar Tree

Several large investors have recently made changes to their positions in the company. Vanguard Group Inc. grew its position in Dollar Tree by 1.7% in the first quarter. Vanguard Group Inc. now owns 23,839,718 shares of the company's stock worth $1,789,648,000 after buying an additional 389,490 shares during the last quarter. EdgePoint Investment Group Inc. boosted its stake in shares of Dollar Tree by 12.3% during the 2nd quarter. EdgePoint Investment Group Inc. now owns 10,825,801 shares of the company's stock valued at $1,072,187,000 after buying an additional 1,184,294 shares during the period. T. Rowe Price Investment Management Inc. boosted its stake in shares of Dollar Tree by 0.7% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 9,994,978 shares of the company's stock valued at $750,323,000 after buying an additional 74,230 shares during the period. Capital International Investors boosted its stake in shares of Dollar Tree by 30.1% during the 4th quarter. Capital International Investors now owns 8,753,693 shares of the company's stock valued at $656,000,000 after buying an additional 2,023,819 shares during the period. Finally, Kovitz Investment Group Partners LLC lifted its stake in shares of Dollar Tree by 382.7% in the 4th quarter. Kovitz Investment Group Partners LLC now owns 6,524,870 shares of the company's stock valued at $488,974,000 after purchasing an additional 5,173,238 shares during the last quarter. Institutional investors and hedge funds own 97.40% 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.