Dollar Tree (NASDAQ:DLTR) Shares Gap Down – Should You Sell?

Dollar Tree, Inc. (NASDAQ:DLTR) gapped down before the market opened on Thursday . The stock had previously closed at $119.35, but opened at $115.50. Dollar Tree shares last traded at $119.7320, with a volume of 2,036,662 shares trading hands.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the stock. Piper Sandler dropped their price objective on shares of Dollar Tree from $116.00 to $101.00 and set a “neutral” rating on the stock in a report on Tuesday, May 26th. The Goldman Sachs Group reduced their target price on shares of Dollar Tree from $115.00 to $105.00 and set a “sell” rating for the company in a report on Friday, May 29th. Jefferies Financial Group restated an “underperform” rating and set a $85.00 target price on shares of Dollar Tree in a research report on Friday, May 29th. Morgan Stanley upped their price target on shares of Dollar Tree from $126.00 to $130.00 and gave the company an “equal weight” rating in a report on Friday, May 29th. Finally, Guggenheim increased their price target on Dollar Tree from $130.00 to $135.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. Eight equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $119.48.

Dollar Tree Stock Up 4.8%

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 firm has a market cap of $23.81 billion, a price-to-earnings ratio of 19.35, a PEG ratio of 1.35 and a beta of 0.66. The business’s 50 day moving average price is $103.46 and its 200 day moving average price is $114.82.

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, beating the consensus estimate of $1.53 by $0.21. The firm had revenue of $4.98 billion during the quarter, compared to analysts’ expectations of $4.96 billion. Dollar Tree had a net margin of 6.51% and a return on equity of 35.19%. The business’s revenue was up 7.2% compared to the same quarter last year. During the same period in the previous year, the business posted $1.26 EPS. Dollar Tree has set its Q2 2026 guidance at 1.000-1.150 EPS. On average, equities analysts forecast that Dollar Tree, Inc. will post 6.98 EPS for the current year.

Institutional Investors Weigh In On Dollar Tree

A number of institutional investors have recently modified their holdings of DLTR. NewEdge Advisors LLC boosted its position in Dollar Tree by 3,237.4% during the first quarter. NewEdge Advisors LLC now owns 13,750 shares of the company’s stock worth $1,032,000 after purchasing an additional 13,338 shares in the last quarter. Woodline Partners LP increased its position in shares of Dollar Tree by 40.7% in the first quarter. Woodline Partners LP now owns 17,078 shares of the company’s stock valued at $1,282,000 after buying an additional 4,941 shares in the last quarter. Focus Partners Wealth increased its position in shares of Dollar Tree by 2.0% in the first quarter. Focus Partners Wealth now owns 10,646 shares of the company’s stock valued at $799,000 after buying an additional 213 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in shares of Dollar Tree during the 2nd quarter worth approximately $257,000. Finally, CW Advisors LLC acquired a new position in shares of Dollar Tree during the 2nd quarter worth approximately $264,000. 97.40% of the stock is currently owned by institutional investors and hedge funds.

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.