Zacks Investment Research lowered shares of Dollar Tree (NASDAQ:DLTR) from a buy rating to a hold rating in a research report released on Monday morning.
According to Zacks, “Dollar Tree has underperformed the industry in the last three months. Though Dollar Tree’s earnings and sales lagged estimates in fourth-quarter fiscal 2017, it improved year over year. Earnings gained from higher sales, rise in comparable store sales (comps) and higher margins. Meanwhile, sales benefited from solid performance at both Dollar Tree and Family Dollar stores. Comps improved for the 40th straight quarter, while reduced merchandise costs, lower markdowns and occupancy expenses aided margins. Moreover, the company is on track with the Family Dollar integration and re-banner process, which is likely to generate run rate savings of about $300 million in three years. Based on these results and expected benefits from Family Dollar, the company provided a solid view for the first quarter and fiscal 2018. However, volatile consumer behavior remains a concern for Dollar Tree. Also, significant global exposure may pose threats.”
Other analysts also recently issued research reports about the company. Moffett Nathanson assumed coverage on Dollar Tree in a report on Monday, December 4th. They set a buy rating on the stock. Raymond James Financial set a $110.00 price objective on Dollar Tree and gave the stock a buy rating in a report on Thursday, March 8th. BMO Capital Markets cut their price objective on Dollar Tree from $115.00 to $97.00 and set a hold rating on the stock in a report on Thursday, March 8th. Barclays upgraded Dollar Tree from an equal weight rating to an overweight rating and boosted their price objective for the stock from $89.25 to $100.00 in a report on Thursday, March 8th. Finally, Bank of America boosted their price objective on Dollar Tree from $105.00 to $115.00 and gave the stock a buy rating in a report on Tuesday, November 21st. Twelve investment analysts have rated the stock with a hold rating, nineteen have issued a buy rating and one has assigned a strong buy rating to the stock. Dollar Tree has an average rating of Buy and a consensus target price of $106.08.
Dollar Tree (NASDAQ:DLTR) last posted its quarterly earnings data on Wednesday, March 7th. The company reported $1.89 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $1.90 by ($0.01). The company had revenue of $6.36 billion for the quarter, compared to analyst estimates of $6.39 billion. Dollar Tree had a return on equity of 18.68% and a net margin of 7.71%. Dollar Tree’s quarterly revenue was up 12.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.36 EPS. equities analysts expect that Dollar Tree will post 5.65 earnings per share for the current year.
In other news, Director Conrad M. Hall acquired 10,000 shares of the company’s stock in a transaction that occurred on Friday, March 9th. The shares were purchased at an average price of $91.83 per share, for a total transaction of $918,300.00. Following the completion of the acquisition, the director now owns 799 shares of the company’s stock, valued at approximately $73,372.17. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 4.10% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in DLTR. Canada Pension Plan Investment Board increased its holdings in Dollar Tree by 45.5% in the third quarter. Canada Pension Plan Investment Board now owns 37,471 shares of the company’s stock worth $3,253,000 after buying an additional 11,710 shares during the last quarter. Daiwa Securities Group Inc. boosted its position in Dollar Tree by 12.3% during the third quarter. Daiwa Securities Group Inc. now owns 7,266 shares of the company’s stock worth $631,000 after purchasing an additional 796 shares during the period. Boston Partners bought a new stake in Dollar Tree during the third quarter worth approximately $4,038,000. Candriam Luxembourg S.C.A. boosted its position in Dollar Tree by 288.2% during the third quarter. Candriam Luxembourg S.C.A. now owns 62,839 shares of the company’s stock worth $5,456,000 after purchasing an additional 46,652 shares during the period. Finally, Alps Advisors Inc. bought a new stake in Dollar Tree during the third quarter worth approximately $486,000. Hedge funds and other institutional investors own 90.97% of the company’s stock.
About Dollar Tree
Dollar Tree, Inc is an operator of discount variety stores. As of January 28, 2017, the Company operated 14,334 stores in 48 states and the District of Columbia, and five Canadian provinces. Its segments include Dollar Tree and Family Dollar. The Dollar Tree segment is the operator of discount variety stores offering merchandise at a fixed price.
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