Dollar Tree (NASDAQ:DLTR) Rating Lowered to “Hold” at Wall Street Zen

Dollar Tree (NASDAQ:DLTR) was downgraded by investment analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday.

Other equities analysts also recently issued research reports about the stock. Sanford C. Bernstein boosted their price target on shares of Dollar Tree from $124.00 to $127.00 and gave the stock a “market perform” rating in a research note on Friday. Jefferies Financial Group upgraded Dollar Tree from a “moderate sell” rating to a “buy” rating in a research note on Wednesday, July 8th. Truist Financial decreased their target price on Dollar Tree from $142.00 to $107.00 and set a “buy” rating for the company in a report on Wednesday, May 27th. The Goldman Sachs Group cut Dollar Tree from a “neutral” rating to a “hold” rating in a research note on Wednesday, July 8th. Finally, Morgan Stanley upped their price target on Dollar Tree from $126.00 to $130.00 and gave the stock an “equal weight” rating in a report on Friday, May 29th. Ten research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, Dollar Tree currently has an average rating of “Hold” and an average price target of $122.82.

Dollar Tree Stock Performance

NASDAQ DLTR opened at $127.21 on Friday. The firm has a 50 day simple moving average of $117.49 and a 200-day simple moving average of $114.31. The company has a debt-to-equity ratio of 0.84, a quick ratio of 0.39 and a current ratio of 1.16. Dollar Tree has a one year low of $84.71 and a one year high of $142.40. The firm has a market cap of $24.45 billion, a price-to-earnings ratio of 19.88, a PEG ratio of 1.45 and a beta of 0.64.

Dollar Tree (NASDAQ:DLTR) last announced its quarterly earnings data on Thursday, May 28th. The company reported $1.74 earnings per share for the quarter, beating analysts’ consensus estimates of $1.53 by $0.21. Dollar Tree had a net margin of 6.51% and a return on equity of 35.19%. The firm had revenue of $4.98 billion during the quarter, compared to analysts’ expectations of $4.96 billion. During the same quarter in the previous year, the business posted $1.26 earnings per share. The business’s quarterly revenue was up 7.2% compared to the same quarter last year. Dollar Tree has set its Q2 2026 guidance at 1.000-1.150 EPS. Equities research analysts anticipate that Dollar Tree will post 7 EPS for the current fiscal year.

Dollar Tree announced that its board has initiated a stock buyback program on Thursday, July 2nd that permits the company to buyback $2.50 billion in shares. This buyback authorization permits the company to repurchase up to 10.7% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s management believes its shares are undervalued.

Institutional Trading of Dollar Tree

A number of hedge funds and other institutional investors have recently bought and sold shares of DLTR. Wedge Capital Management L L P NC purchased a new stake in Dollar Tree during the 2nd quarter worth about $6,840,000. Tema ETFs LLC boosted its position in shares of Dollar Tree by 7.1% during the 2nd quarter. Tema ETFs LLC now owns 2,176 shares of the company’s stock worth $263,000 after acquiring an additional 145 shares in the last quarter. Handelsbanken Fonder AB increased its holdings in shares of Dollar Tree by 185.2% in the 2nd quarter. Handelsbanken Fonder AB now owns 51,345 shares of the company’s stock valued at $6,210,000 after acquiring an additional 33,344 shares during the last quarter. Valeo Financial Advisors LLC increased its holdings in shares of Dollar Tree by 3.5% in the 2nd quarter. Valeo Financial Advisors LLC now owns 3,475 shares of the company’s stock valued at $420,000 after acquiring an additional 118 shares during the last quarter. Finally, Polianta Ltd raised its position in shares of Dollar Tree by 30.9% during the 2nd quarter. Polianta Ltd now owns 16,100 shares of the company’s stock worth $1,947,000 after acquiring an additional 3,800 shares in the last quarter. 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.