Redwood Investment Management LLC Takes $1.17 Million Position in Dollar Tree, Inc. $DLTR

Redwood Investment Management LLC purchased a new stake in Dollar Tree, Inc. (NASDAQ:DLTR) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund purchased 9,632 shares of the company’s stock, valued at approximately $1,165,000.

Several other hedge funds have also recently modified their holdings of the business. NewEdge Advisors LLC raised its stake in Dollar Tree by 3,237.4% in the first quarter. NewEdge Advisors LLC now owns 13,750 shares of the company’s stock worth $1,032,000 after buying an additional 13,338 shares in the last quarter. Woodline Partners LP boosted its position in Dollar Tree by 40.7% during the 1st quarter. Woodline Partners LP now owns 17,078 shares of the company’s stock valued at $1,282,000 after acquiring an additional 4,941 shares in the last quarter. Focus Partners Wealth boosted its position in Dollar Tree by 2.0% during the 1st quarter. Focus Partners Wealth now owns 10,646 shares of the company’s stock valued at $799,000 after acquiring an additional 213 shares in the last quarter. Sivia Capital Partners LLC purchased a new position in shares of Dollar Tree in the 2nd quarter valued at $257,000. Finally, CW Advisors LLC bought a new position in shares of Dollar Tree in the 2nd quarter worth $264,000. Hedge funds and other institutional investors own 97.40% of the company’s stock.

Dollar Tree Trading Down 1.7%

Dollar Tree stock opened at $132.18 on Thursday. The company has a debt-to-equity ratio of 0.84, a quick ratio of 0.39 and a current ratio of 1.16. The stock has a market cap of $25.40 billion, a PE ratio of 20.65, a price-to-earnings-growth ratio of 1.53 and a beta of 0.64. The stock has a 50-day moving average of $125.40 and a two-hundred day moving average of $114.65. Dollar Tree, Inc. has a one year low of $84.71 and a one year high of $142.40.

Dollar Tree (NASDAQ:DLTR) last issued its quarterly earnings results on Thursday, May 28th. The company reported $1.74 earnings per share for the quarter, topping analysts’ consensus estimates of $1.53 by $0.21. Dollar Tree had a return on equity of 35.19% and a net margin of 6.51%.The business had revenue of $4.98 billion for the quarter, compared to analyst estimates of $4.96 billion. During the same quarter in the previous year, the firm earned $1.26 earnings per share. The company’s revenue was up 7.2% on a year-over-year basis. On average, research analysts anticipate that Dollar Tree, Inc. will post 7.02 EPS for the current fiscal year.

Dollar Tree declared that its Board of Directors has initiated a share buyback plan on Thursday, July 2nd that authorizes the company to buyback $2.50 billion in outstanding shares. This buyback authorization authorizes the company to buy up to 10.7% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Piper Sandler reduced their target price on shares of Dollar Tree from $116.00 to $101.00 and set a “neutral” rating for the company in a report on Tuesday, May 26th. Raymond James Financial raised shares of Dollar Tree from a “market perform” rating to an “outperform” rating and set a $140.00 price objective on the stock in a research report on Wednesday, July 8th. Weiss Ratings upgraded shares of Dollar Tree from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, June 18th. Freedom Capital cut shares of Dollar Tree from a “strong-buy” rating to a “hold” rating in a research report on Thursday, May 28th. Finally, Benchmark started coverage on shares of Dollar Tree in a research note on Wednesday, July 8th. They issued a “hold” rating for the company. Ten research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $125.27.

Key Dollar Tree News

Here are the key news stories impacting Dollar Tree this week:

• Positive Sentiment: Analyst support remains favorable. Truist raised its price target from $136 to $138 while maintaining a Buy rating, and Telsey Advisory initiated or reiterated a Buy view. These actions suggest analysts see additional upside after the company’s recent momentum. Truist Dollar Tree price target article Telsey Advisory Buy article
• Positive Sentiment: Prior earnings momentum and potential for a beat are supporting sentiment. Dollar Tree’s latest reported quarter exceeded consensus estimates for both earnings and revenue, with sales growing year over year. Zacks is also highlighting the company among retailers that could outperform quarterly expectations, although this is a screening signal rather than a confirmed forecast. Zacks earnings article
• Neutral Sentiment: Options traders expect substantial volatility. Options pricing implies a potential move of roughly 9% following the earnings release, indicating that investors anticipate a meaningful reaction to guidance, traffic, margins and consumer spending trends. Dollar Tree options volatility article
• Negative Sentiment: Technical resistance and profit-taking may be limiting the stock. After a strong recent advance, technical analysts identify potential resistance near $141.50. Investors may be locking in gains or waiting for earnings confirmation, which helps explain the stock’s recent decrease despite positive analyst commentary. Dollar Tree technical analysis article

Dollar Tree 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.