Dollar Tree (NASDAQ:DLTR) Stock Rating Cut to “Hold” at Evercore

Evercore downgraded shares of Dollar Tree (NASDAQ:DLTR) from a strong-buy rating to a hold rating in a report issued on Tuesday,Zacks reports.

Several other analysts have also recently issued reports on the stock. Gordon Haskett upgraded shares of Dollar Tree from a “reduce” rating to a “hold” rating and set a $115.00 target price on the stock in a research report on Thursday, June 4th. Jefferies Financial Group upgraded Dollar Tree from a “moderate sell” rating to a “buy” rating in a research report on Wednesday, July 8th. UBS Group increased their price target on Dollar Tree from $145.00 to $150.00 and gave the company a “buy” rating in a report on Friday, August 28th. Piper Sandler increased their target price on shares of Dollar Tree from $114.00 to $121.00 and gave the company a “neutral” rating in a research note on Monday, August 31st. Finally, The Goldman Sachs Group reissued a “neutral” rating and issued a $131.00 price objective on shares of Dollar Tree in a research note on Monday, August 31st. Ten analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Dollar Tree currently has a consensus rating of “Hold” and a consensus target price of $131.45.

Dollar Tree Stock Down 2.3%

Shares of DLTR opened at $113.30 on Tuesday. The stock has a market capitalization of $21.26 billion, a price-to-earnings ratio of 13.83, a price-to-earnings-growth ratio of 1.07 and a beta of 0.66. Dollar Tree has a 1 year low of $84.71 and a 1 year high of $142.40. The business’s 50 day simple moving average is $124.67 and its 200-day simple moving average is $113.99. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.13 and a quick ratio of 0.39.

Dollar Tree (NASDAQ:DLTR) last posted its earnings results on Thursday, August 27th. The company reported $2.70 earnings per share for the quarter, beating analysts’ consensus estimates of $1.15 by $1.55. Dollar Tree had a net margin of 8.03% and a return on equity of 38.61%. The firm had revenue of $4.89 billion during the quarter, compared to analyst estimates of $4.86 billion. During the same period last year, the firm posted $0.77 earnings per share. Dollar Tree’s revenue for the quarter was up 7.0% compared to the same quarter last year. Dollar Tree has set its Q3 2026 guidance at 0.800-0.950 EPS and its FY 2026 guidance at 7.700-8.050 EPS. As a group, equities analysts expect that Dollar Tree will post 7.95 earnings per share for the current fiscal year.

Dollar Tree announced that its Board of Directors has initiated a share repurchase plan on Thursday, July 2nd that permits the company to repurchase $2.50 billion in shares. This repurchase authorization permits the company to buy up to 10.7% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling at Dollar Tree

In other news, insider Robert Aflatooni sold 2,500 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $126.01, for a total value of $315,025.00. Following the completion of the sale, the insider owned 24,820 shares of the company’s stock, valued at approximately $3,127,568.20. This represents a 9.15% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Stephanie Stahl sold 1,185 shares of Dollar Tree stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $131.47, for a total transaction of $155,791.95. Following the transaction, the director directly owned 4,089 shares in the company, valued at approximately $537,580.83. The trade was a 22.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 7.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Envestnet Portfolio Solutions Inc. bought a new position in shares of Dollar Tree in the 2nd quarter worth $5,372,000. Sequoia Financial Advisors LLC boosted its position in Dollar Tree by 155.7% during the second quarter. Sequoia Financial Advisors LLC now owns 32,295 shares of the company’s stock valued at $3,906,000 after purchasing an additional 19,665 shares in the last quarter. Tidal Investments LLC boosted its position in Dollar Tree by 144.0% during the second quarter. Tidal Investments LLC now owns 67,337 shares of the company’s stock valued at $8,144,000 after purchasing an additional 39,743 shares in the last quarter. WINTON GROUP Ltd purchased a new position in Dollar Tree in the second quarter valued at about $9,466,000. Finally, Cidel Asset Management Inc. raised its holdings in Dollar Tree by 111.9% in the second quarter. Cidel Asset Management Inc. now owns 5,996 shares of the company’s stock worth $725,000 after purchasing an additional 3,167 shares in the last quarter. 97.40% of the stock is currently owned by hedge funds and other institutional investors.

About Dollar Tree

Dollar Tree, Inc operates discount variety stores under the Dollar Tree brand in the United States and Canada. Its stores offer a broad selection of everyday merchandise, including household supplies, food and beverages, health and personal-care products, seasonal items, toys, party supplies, and arts and crafts products.

The company’s Dollar Tree stores historically focused on merchandise priced at a fixed dollar point and have expanded to include multiple price points through initiatives such as Dollar Tree Plus.