Dollar Tree, Inc. (NASDAQ:DLTR) has received a consensus recommendation of “Hold” from twenty-two research firms following the company’s recent performance. According to MarketBeat.com, the analysts’ ratings include five sell ratings, nine holds, and eight buy recommendations. The average target price set by these brokerages for Dollar Tree’s shares is currently at $119.61.
Several firms have recently adjusted their price targets for Dollar Tree. The Telsey Advisory Group has set a target price of $150.00, while Sanford C. Bernstein raised their price target from $109.00 to $123.00, assigning a “market perform” rating. Conversely, Goldman Sachs Group issued a sell rating and reduced its target price from $133.00 to $103.00.
Recent Earnings Performance
On December 3, 2023, Dollar Tree announced its quarterly earnings, reporting $1.21 earnings per share (EPS). This figure surpassed analysts’ consensus estimate of $1.09 by $0.12. The company generated revenue of $4.75 billion, exceeding forecasts of $4.70 billion, marking a 9.4% increase compared to the same quarter last year.
Dollar Tree’s return on equity stood at 30.23%, although the company reported a negative net margin of 15.40%. For its upcoming Q4 guidance in 2025, the company has projected EPS between $2.40 and $2.60. Analysts anticipate that Dollar Tree will achieve an EPS of $5.39 for the current fiscal year.
Insider Transactions and Institutional Holdings
Recent insider activity highlights significant stock transactions. On October 17, 2023, insider Robert Aflatooni sold 1,260 shares of Dollar Tree at an average price of $94.70, totaling approximately $119,322.00. Following this sale, Aflatooni owned 21,402 shares, valued at around $2,026,769.40, representing a decrease of 5.56% in their holdings.
Another insider, Brent A. Beebe, sold 2,200 shares on December 8, 2023, at an average price of $124.65, amounting to $274,230.00. Beebe now holds 13,740 shares, valued at approximately $1,712,691, reflecting a 13.80% decrease in ownership. Corporate insiders currently own 6.60% of Dollar Tree’s stock.
Institutional investors have also made notable adjustments to their positions in Dollar Tree. In the first quarter, Focus Partners Advisor Solutions LLC acquired a new stake valued at $227,000. AQR Capital Management LLC increased its holdings by 96.1%, now owning 126,714 shares worth approximately $9,367,000 after acquiring an additional 62,097 shares.
Other institutional players, such as Jacobs Levy Equity Management Inc. and NewEdge Advisors LLC, have also expanded their stakes, contributing to the overall institutional ownership of 97.40% in Dollar Tree.
Company Overview
Founded in 1986 and headquartered in Chesapeake, Virginia, Dollar Tree, Inc. operates a network of discount retail stores including Dollar Tree and Family Dollar. The company specializes in offering a wide variety of everyday items at low prices, catering to budget-conscious consumers. Its product range includes household essentials, food and snacks, health and beauty products, and seasonal goods.
Dollar Tree’s merchandising strategy emphasizes high-turnover branded and private-label merchandise, with Family Dollar enhancing the product assortment in smaller neighborhood stores. The company has expanded through both organic growth and acquisitions, solidifying its position in the North American retail market.
As analysts continue to evaluate Dollar Tree’s performance, upcoming financial results will be closely scrutinized for insights into the company’s future trajectory.
