Dollar Tree (NASDAQ:DLTR) Rating Increased to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Dollar Tree (NASDAQ:DLTR) from a hold rating to a buy rating in a report issued on Saturday.

DLTR has been the topic 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. The Goldman Sachs Group lowered shares of Dollar Tree from a “neutral” rating to a “hold” rating in a research report on Wednesday, July 8th. Bank of America restated an “underperform” rating on shares of Dollar Tree in a report on Thursday, May 28th. Benchmark initiated coverage on shares of Dollar Tree in a research report on Wednesday, July 8th. They set a “hold” rating on the stock. Finally, Jefferies Financial Group raised shares of Dollar Tree from a “moderate sell” rating to a “buy” rating in a research note on Wednesday, July 8th. Ten investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $123.41.

Dollar Tree Stock Up 2.4%

Dollar Tree stock opened at $131.48 on Friday. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.16 and a quick ratio of 0.39. The stock has a market capitalization of $25.27 billion, a PE ratio of 20.54, a price-to-earnings-growth ratio of 1.50 and a beta of 0.64. The business has a 50 day simple moving average of $123.93 and a 200-day simple moving average of $114.37. Dollar Tree has a 12 month low of $84.71 and a 12 month high of $142.40.

Dollar Tree (NASDAQ:DLTR) last announced its earnings results on Thursday, May 28th. The company reported $1.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.53 by $0.21. Dollar Tree had a return on equity of 35.19% and a net margin of 6.51%.The firm had revenue of $4.98 billion for the quarter, compared to analyst estimates of $4.96 billion. During the same quarter last year, the firm posted $1.26 EPS. The business’s revenue was up 7.2% on a year-over-year basis. Dollar Tree has set its Q2 2026 guidance at 1.000-1.150 EPS. On average, analysts anticipate that Dollar Tree will post 7.02 EPS for the current fiscal year.

Dollar Tree announced that its Board of Directors has authorized a stock buyback plan on Thursday, July 2nd that permits the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization permits the company to reacquire up to 10.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of Dollar Tree during the 2nd quarter worth $2,643,741,000. Pzena Investment Management LLC acquired a new position in shares of Dollar Tree during the second quarter worth $1,176,661,000. State Street Corp increased its holdings in Dollar Tree by 3.5% in the third quarter. State Street Corp now owns 9,421,856 shares of the company’s stock valued at $889,141,000 after buying an additional 319,938 shares during the last quarter. Primecap Management Co. CA purchased a new position in Dollar Tree in the second quarter valued at $455,845,000. Finally, Alliancebernstein L.P. increased its holdings in Dollar Tree by 176.9% in the second quarter. Alliancebernstein L.P. now owns 3,746,222 shares of the company’s stock valued at $371,026,000 after buying an additional 2,393,172 shares during the last quarter. Institutional investors and hedge funds own 97.40% of the company’s stock.

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.