Dollar Tree Inc. (DLTR) Downgraded to “Sell” at Zacks Investment Research
According to Zacks, “Dollar Tree remains prone to the challenging retail environment and persistent currency headwinds. This led the company to revert to its dismal earnings trend in second-quarter fiscal 2016. With this, the company delivered an average negative surprise of 0.6% in the trailing four quarters. Additionally, the company expects integration costs and cannibalization to continue to be headwinds. Further, the company curtailed its sales outlook for fiscal 2016, posing concern. However, Dollar Tree has been doing well on the back of its long-term strategies and growth initiatives including store expansion and productivity enhancement, tapping of new markets and incorporating innovative sales channels to serve its patrons better. Also, Dollar Tree is well on track with the integration of Family Dollar, which is expected to generate synergies in the long run. “
Several other analysts also recently weighed in on the stock. Vetr downgraded shares of Dollar Tree from a strong-buy rating to a buy rating and set a $86.00 price objective on the stock. in a research report on Tuesday, September 27th. Atlantic Securities cut shares of Dollar Tree from a neutral rating to an underweight rating and lowered their target price for the company from $87.00 to $68.00 in a research note on Tuesday, September 27th. Barclays PLC began coverage on shares of Dollar Tree in a research note on Thursday, September 22nd. They set an equal weight rating and a $88.00 target price on the stock. Jefferies Group reissued a hold rating on shares of Dollar Tree in a research note on Monday, September 12th. Finally, Goldman Sachs Group Inc. reissued a buy rating and set a $101.00 target price on shares of Dollar Tree in a research note on Tuesday, September 6th. Four analysts have rated the stock with a sell rating, eight have assigned a hold rating and thirteen have issued a buy rating to the stock. Dollar Tree has a consensus rating of Hold and an average target price of $91.82.
Shares of Dollar Tree (NASDAQ:DLTR) traded down 3.06% during midday trading on Monday, reaching $77.10. 1,039,058 shares of the company were exchanged. The company has a market capitalization of $18.18 billion, a PE ratio of 25.58 and a beta of 0.54. The stock’s 50-day moving average price is $84.76 and its 200-day moving average price is $86.79. Dollar Tree has a 52-week low of $60.31 and a 52-week high of $99.93.
Dollar Tree (NASDAQ:DLTR) last issued its quarterly earnings data on Thursday, August 25th. The company reported $0.72 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.73 by $0.01. The firm earned $5.02 billion during the quarter, compared to the consensus estimate of $5.08 billion. Dollar Tree had a net margin of 3.50% and a return on equity of 16.29%. The company’s revenue for the quarter was up 66.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.67 earnings per share. Analysts anticipate that Dollar Tree will post $3.81 EPS for the current year.
In related news, Director Thomas A. Saunders sold 5,000 shares of the company’s stock in a transaction dated Monday, July 11th. The shares were sold at an average price of $95.50, for a total transaction of $477,500.00. Following the transaction, the director now owns 2,310,387 shares in the company, valued at approximately $220,641,958.50. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Lemuel E. Lewis purchased 1,470 shares of Dollar Tree stock in a transaction that occurred on Tuesday, August 30th. The shares were bought at an average price of $85.00 per share, for a total transaction of $124,950.00. Following the transaction, the director now owns 9,469 shares in the company, valued at $804,865. The disclosure for this purchase can be found here. Corporate insiders own 4.10% of the company’s stock.
A number of hedge funds have recently made changes to their positions in the company. Lone Pine Capital LLC boosted its stake in shares of Dollar Tree by 15.1% in the second quarter. Lone Pine Capital LLC now owns 13,362,151 shares of the company’s stock valued at $1,259,249,000 after buying an additional 1,755,667 shares in the last quarter. WestEnd Advisors LLC purchased a new stake in shares of Dollar Tree during the second quarter valued at $94,632,000. Atlanta Capital Management Co. L L C purchased a new stake in shares of Dollar Tree during the second quarter valued at $78,885,000. Standard Life Investments LTD boosted its stake in shares of Dollar Tree by 38.5% in the second quarter. Standard Life Investments LTD now owns 2,797,544 shares of the company’s stock valued at $263,654,000 after buying an additional 777,451 shares in the last quarter. Finally, Victory Capital Management Inc. boosted its stake in shares of Dollar Tree by 23,255.8% in the second quarter. Victory Capital Management Inc. now owns 719,592 shares of the company’s stock valued at $67,815,000 after buying an additional 716,511 shares in the last quarter. 94.37% of the stock is owned by hedge funds and other institutional investors.
About Dollar Tree
Dollar Tree, Inc is an operator of discount variety stores. The Company operates approximately 13,851 discount variety retail stores. The Company’s segments include Dollar Tree and Family Dollar. The Dollar Tree segment operates discount variety stores offering merchandise at a fixed price. The Family Dollar segment operates a chain of general merchandise retail discount stores providing consumers with a selection of merchandise in neighborhood stores.
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