Dollar Tree (NASDAQ:DLTR) Raised to “Buy” at Wall Street Zen

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

DLTR has been the subject of several other reports. Freedom Capital downgraded shares of Dollar Tree from a “strong-buy” rating to a “hold” rating in a report on Thursday, May 28th. Wells Fargo & Company boosted their target price on shares of Dollar Tree from $145.00 to $155.00 and gave the company an “overweight” rating in a report on Monday, August 17th. Bank of America restated an “underperform” rating on shares of Dollar Tree in a research report on Thursday, May 28th. Truist Financial cut their price target on Dollar Tree from $142.00 to $107.00 and set a “buy” rating for the company in a report on Wednesday, May 27th. Finally, Weiss Ratings upgraded Dollar Tree from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, June 18th. Ten investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $123.41.

Dollar Tree Stock Performance

Shares of DLTR opened at $131.48 on Friday. Dollar Tree has a fifty-two week low of $84.71 and a fifty-two week high of $142.40. The business has a 50-day moving average of $123.93 and a 200 day moving average of $114.35. The firm has a market cap of $25.27 billion, a P/E ratio of 20.54, a price-to-earnings-growth ratio of 1.50 and a beta of 0.64. 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 (NASDAQ:DLTR) last released its quarterly earnings data on Thursday, May 28th. The company reported $1.74 EPS for the quarter, beating the consensus estimate of $1.53 by $0.21. The business had revenue of $4.98 billion for the quarter, compared to the consensus estimate of $4.96 billion. Dollar Tree had a net margin of 6.51% and a return on equity of 35.19%. The company’s revenue was up 7.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.26 earnings per share. Dollar Tree has set its Q2 2026 guidance at 1.000-1.150 EPS. As a group, research analysts forecast that Dollar Tree will post 7.02 EPS for the current year.

Dollar Tree announced that its Board of Directors has initiated a share buyback program on Thursday, July 2nd that allows the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization allows the company to buy up to 10.7% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its stock is undervalued.

Hedge Funds Weigh In On Dollar Tree

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Wealthfront Advisers LLC raised its position in Dollar Tree by 13.7% during the first quarter. Wealthfront Advisers LLC now owns 76,985 shares of the company’s stock valued at $8,431,000 after purchasing an additional 9,288 shares in the last quarter. Hanseatic Management Services Inc. bought a new stake in Dollar Tree during the first quarter worth about $950,000. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Dollar Tree by 4.7% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,821,852 shares of the company’s stock worth $224,106,000 after purchasing an additional 81,695 shares in the last quarter. Capital International Inc. CA boosted its holdings in shares of Dollar Tree by 1,920.0% in the 4th quarter. Capital International Inc. CA now owns 116,109 shares of the company’s stock worth $14,283,000 after purchasing an additional 110,361 shares in the last quarter. Finally, Hsbc Holdings PLC increased its position in shares of Dollar Tree by 10.4% during the 1st quarter. Hsbc Holdings PLC now owns 646,333 shares of the company’s stock valued at $70,363,000 after purchasing an additional 60,955 shares during the last quarter. 97.40% of the stock is currently owned by hedge funds and other institutional investors.

About Dollar Tree

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.