Dollar Tree (NASDAQ:DLTR) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday, March 12th.
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 have also issued research reports about the company. Buckingham Research increased their price objective on Dollar Tree from $93.00 to $111.00 and gave the company a “buy” rating in a report on Monday, November 20th. UBS reiterated a “buy” rating and set a $106.00 price objective (up previously from $100.00) on shares of Dollar Tree in a report on Tuesday, November 14th. Goldman Sachs started coverage on Dollar Tree in a report on Tuesday, November 14th. They set a “buy” rating and a $106.00 price objective for the company. Bank of America increased their price objective on Dollar Tree from $105.00 to $115.00 and gave the company a “buy” rating in a report on Tuesday, November 21st. Finally, Moffett Nathanson started coverage on Dollar Tree in a research note on Monday, December 4th. They issued a “buy” rating for the company. Twelve analysts have rated the stock with a hold rating, nineteen have given a buy rating and one has assigned a strong buy rating to the stock. The company has a consensus rating of “Buy” and a consensus price target of $106.08.
Dollar Tree (NASDAQ:DLTR) last announced its earnings results on Wednesday, March 7th. The company reported $1.89 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.90 by ($0.01). Dollar Tree had a net margin of 7.71% and a return on equity of 18.68%. The company had revenue of $6.36 billion for the quarter, compared to the consensus estimate of $6.39 billion. During the same period last year, the business posted $1.36 EPS. The firm’s revenue was up 12.9% compared to the same quarter last year. analysts forecast that Dollar Tree will post 5.63 EPS for the current year.
In other Dollar Tree news, Director Conrad M. Hall bought 10,000 shares of the company’s stock in a transaction dated Friday, March 9th. The shares were purchased at an average cost of $91.83 per share, for a total transaction of $918,300.00. Following the transaction, the director now directly owns 799 shares of the company’s stock, valued at $73,372.17. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Arnold S. Barron sold 6,023 shares of the firm’s stock in a transaction dated Tuesday, March 20th. The shares were sold at an average price of $94.49, for a total value of $569,113.27. Following the sale, the director now owns 26,667 shares in the company, valued at $2,519,764.83. The disclosure for this sale can be found here. 2.90% of the stock is owned by company insiders.
A number of hedge funds have recently bought and sold shares of the stock. BlackRock Inc. boosted its holdings in Dollar Tree by 1.0% in the 4th quarter. BlackRock Inc. now owns 14,337,696 shares of the company’s stock worth $1,538,577,000 after buying an additional 142,633 shares during the last quarter. Macquarie Group Ltd. boosted its holdings in shares of Dollar Tree by 184,411.9% during the 3rd quarter. Macquarie Group Ltd. now owns 8,303,037 shares of the company’s stock worth $720,869,000 after purchasing an additional 8,298,537 shares during the last quarter. Bank of New York Mellon Corp boosted its holdings in shares of Dollar Tree by 3.2% during the 3rd quarter. Bank of New York Mellon Corp now owns 2,857,604 shares of the company’s stock worth $248,098,000 after purchasing an additional 87,592 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Dollar Tree by 1.9% during the 4th quarter. Geode Capital Management LLC now owns 2,578,126 shares of the company’s stock worth $276,096,000 after purchasing an additional 47,316 shares during the last quarter. Finally, Alkeon Capital Management LLC boosted its holdings in shares of Dollar Tree by 8.2% during the 3rd quarter. Alkeon Capital Management LLC now owns 2,570,949 shares of the company’s stock worth $223,210,000 after purchasing an additional 195,000 shares during the last quarter. Institutional investors own 90.94% of the company’s stock.
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About Dollar Tree
Dollar Tree, Inc operates variety retail stores in the United States and Canada. It operates in two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $1.00. It provides consumable merchandise, including candy and food, and health and beauty care products, as well as everyday consumables, such as household paper and chemicals, and frozen and refrigerated food; various merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, and other items; and seasonal goods, which include Valentine's Day, Easter, Halloween, and Christmas merchandise.
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