Zacks Research Has Positive View of Dollar Tree Q2 Earnings

Key Points

• Zacks Research has raised its Q2 2027 EPS estimates for Dollar Tree from $0.75 to $0.94, reflecting a positive outlook for the company's earnings.
• Dollar Tree's recent earnings report surpassed expectations, with the company posting $0.77 EPS and $4.57 billion in revenue, beating consensus estimates significantly.
• The company has authorized a share buyback program totaling $2.50 billion, allowing for the repurchase of up to 11.5% of its shares, indicating strong confidence from its board regarding the stock's undervaluation.

Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) - Investment analysts at Zacks Research lifted their Q2 2027 EPS estimates for Dollar Tree in a research report issued to clients and investors on Thursday, September 18th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $0.94 for the quarter, up from their prior forecast of $0.75. The consensus estimate for Dollar Tree's current full-year earnings is $5.39 per share.

Several other research firms also recently commented on DLTR. Evercore ISI lifted their price target on shares of Dollar Tree from $108.00 to $110.00 and gave the stock an "in-line" rating in a research note on Tuesday, August 26th. BMO Capital Markets lifted their price target on shares of Dollar Tree from $80.00 to $85.00 and gave the stock a "market perform" rating in a research note on Thursday, June 5th. Gordon Haskett downgraded shares of Dollar Tree from a "hold" rating to a "reduce" rating and set a $95.00 price target on the stock. in a research note on Wednesday, September 3rd. Truist Financial lifted their price target on shares of Dollar Tree from $127.00 to $129.00 and gave the stock a "buy" rating in a research note on Wednesday, September 3rd. Finally, Telsey Advisory Group reissued an "outperform" rating and set a $130.00 price target on shares of Dollar Tree in a research note on Thursday, September 4th. Eight analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $109.28.

Dollar Tree Trading Down 3.1%

Shares of DLTR opened at $95.26 on Monday. The firm's 50 day simple moving average is $109.16 and its 200 day simple moving average is $93.06. The company has a market capitalization of $19.43 billion, a P/E ratio of -7.02, a P/E/G ratio of 1.73 and a beta of 0.89. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.04 and a quick ratio of 0.27. Dollar Tree has a 1-year low of $60.49 and a 1-year high of $118.06.

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

Dollar Tree announced that its board has authorized 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 repurchase up to 11.5% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's board of directors believes its shares are undervalued.

Insider Transactions at Dollar Tree

In other Dollar Tree news, Director Stephanie Stahl sold 1,185 shares of the business's stock in a transaction on Friday, September 5th. The shares were sold at an average price of $100.32, for a total transaction 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. The trade was a 22.47% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 6.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in DLTR. Price T Rowe Associates Inc. MD increased its position in Dollar Tree by 69.6% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 5,848,196 shares of the company's stock valued at $439,025,000 after purchasing an additional 2,400,586 shares during the period. Alliancebernstein L.P. grew its position in shares of Dollar Tree by 176.9% in the 2nd quarter. Alliancebernstein L.P. now owns 3,746,222 shares of the company's stock worth $371,026,000 after buying an additional 2,393,172 shares during the period. Alyeska Investment Group L.P. grew its position in shares of Dollar Tree by 1,055.1% in the 1st quarter. Alyeska Investment Group L.P. now owns 2,322,189 shares of the company's stock worth $174,327,000 after buying an additional 2,121,149 shares during the period. Norges Bank purchased a new stake in shares of Dollar Tree in the 2nd quarter worth about $185,784,000. Finally, EdgePoint Investment Group Inc. grew its position in shares of Dollar Tree by 21.4% in the 1st quarter. EdgePoint Investment Group Inc. now owns 9,641,507 shares of the company's stock worth $723,788,000 after buying an additional 1,701,344 shares during the period. 97.40% of the stock is owned by hedge funds and other institutional investors.

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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