Dollar Tree Inc. (DLTR) Shares Gap Up Following Earnings Beat
Dollar Tree Inc. (NASDAQ:DLTR)’s share price gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $89.03, but opened at $88.68. Dollar Tree shares last traded at $89.04, with a volume of 2,489,165 shares changing hands.
The company reported $0.81 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.78 by $0.03. The business earned $5 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%. Dollar Tree’s quarterly revenue was up 1.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.49 EPS.
Several analysts recently issued reports on DLTR shares. Jefferies Group reaffirmed a “hold” rating on shares of Dollar Tree in a report on Monday, September 12th. Deutsche Bank AG raised shares of Dollar Tree from a “hold” rating to a “buy” rating and upped their price objective for the stock from $82.00 to $110.00 in a report on Monday, August 1st. Goldman Sachs Group Inc. reaffirmed a “buy” rating and set a $101.00 price objective on shares of Dollar Tree in a report on Tuesday, September 6th. Atlantic Securities downgraded shares of Dollar Tree from a “neutral” rating to an “underweight” rating and decreased their price objective for the stock from $87.00 to $68.00 in a report on Tuesday, September 27th. Finally, Vetr downgraded shares of Dollar Tree from a “buy” rating to a “sell” rating and set a $74.00 price objective for the company. in a report on Monday, October 3rd. Four investment analysts have rated the stock with a sell rating, ten have given a hold rating and twelve have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus price target of $91.23.
In related news, insider Barry W. Sullivan sold 2,449 shares of the stock in a transaction that occurred on Thursday, September 1st. The shares were sold at an average price of $83.21, for a total value of $203,781.29. Following the sale, the insider now directly owns 8,904 shares in the company, valued at approximately $740,901.84. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Conrad M. Hall purchased 5,000 shares of the business’s stock in a transaction that occurred on Monday, August 29th. The stock was purchased at an average price of $85.60 per share, for a total transaction of $428,000.00. Following the completion of the transaction, the director now directly owns 799 shares in the company, valued at $68,394.40. The disclosure for this purchase can be found here. 4.10% of the stock is currently owned by corporate insiders.
Hedge funds have recently made changes to their positions in the stock. Lone Pine Capital LLC increased 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 worth $1,259,249,000 after buying an additional 1,755,667 shares in the last quarter. Morgan Stanley increased its stake in shares of Dollar Tree by 269.5% in the third quarter. Morgan Stanley now owns 2,113,564 shares of the company’s stock worth $166,824,000 after buying an additional 1,541,522 shares in the last quarter. Vontobel Asset Management Inc. purchased a new stake in shares of Dollar Tree during the third quarter worth $124,190,000. 1832 Asset Management L.P. increased its stake in shares of Dollar Tree by 223.5% in the third quarter. 1832 Asset Management L.P. now owns 1,925,703 shares of the company’s stock worth $151,205,000 after buying an additional 1,330,348 shares in the last quarter. Finally, WestEnd Advisors LLC purchased a new stake in shares of Dollar Tree during the second quarter worth $94,632,000. Institutional investors and hedge funds own 95.90% of the company’s stock.
The stock has a market cap of $20.95 billion, a price-to-earnings ratio of 29.48 and a beta of 0.57. The firm’s 50 day moving average price is $77.65 and its 200 day moving average price is $85.83.
Dollar Tree Company Profile
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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