Dollar Tree (NASDAQ:DLTR) to Repurchase $2.50 billion in Outstanding Shares

Dollar Tree (NASDAQ:DLTR) declared that its Board of Directors has approved a stock buyback plan on Thursday, July 2nd, RTT News reports. The company plans to repurchase $2.50 billion in outstanding shares. This repurchase authorization allows the company to buy up to 10.7% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s leadership believes its stock is undervalued.

Dollar Tree Trading Up 2.4%

Shares of DLTR stock traded up $2.90 on Thursday, hitting $124.05. The stock had a trading volume of 3,238,521 shares, compared to its average volume of 3,466,362. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.16 and a quick ratio of 0.39. The firm has a market capitalization of $23.84 billion, a P/E ratio of 19.38, a P/E/G ratio of 1.39 and a beta of 0.65. Dollar Tree has a 1 year low of $84.71 and a 1 year high of $142.40. The company’s 50 day moving average price is $104.90 and its 200-day moving average price is $114.67.

Dollar Tree (NASDAQ:DLTR) last posted its earnings results on Thursday, May 28th. The company reported $1.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.53 by $0.21. The firm had revenue of $4.98 billion for the quarter, compared to analyst estimates of $4.96 billion. Dollar Tree had a return on equity of 35.19% and a net margin of 6.51%.Dollar Tree’s revenue was up 7.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.26 EPS. Dollar Tree has set its Q2 2026 guidance at 1.000-1.150 EPS. Analysts anticipate that Dollar Tree will post 6.98 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on DLTR. Deutsche Bank Aktiengesellschaft increased their price target on Dollar Tree from $99.00 to $102.00 and gave the stock a “hold” rating in a report on Thursday, June 4th. Morgan Stanley upped their target price on shares of Dollar Tree from $126.00 to $130.00 and gave the company an “equal weight” rating in a research report on Friday, May 29th. The Goldman Sachs Group lowered their target price on shares of Dollar Tree from $115.00 to $105.00 and set a “sell” rating for the company in a research note on Friday, May 29th. BMO Capital Markets reiterated an “underperform” rating on shares of Dollar Tree in a research report on Tuesday, March 17th. Finally, Sanford C. Bernstein boosted their price target on shares of Dollar Tree from $115.00 to $124.00 and gave the company a “market perform” rating in a research note on Friday, May 29th. Eight research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $119.48.

Dollar Tree Company Profile

Dollar Tree, Inc is a North American discount retailer that operates a portfolio of value-oriented store banners, primarily Dollar Tree and Family Dollar. The company’s stores offer a broad assortment of everyday items at low price points, including household essentials, food and snacks, health and beauty products, cleaning supplies, seasonal and party goods, home décor, and basic apparel. Dollar Tree’s merchandising strategy emphasizes high-turnover branded and private-label merchandise tailored to budget-conscious consumers, with Family Dollar complementing the chain by offering a wider range of price points and assortment depth in smaller-format neighborhood locations.

Founded in 1986 and headquartered in Chesapeake, Virginia, Dollar Tree has grown through both organic store openings and acquisitions.