Dollar Tree (NASDAQ:DLTR) Cut to Hold at Evercore

Dollar Tree (NASDAQ:DLTR) was downgraded by equities researchers at Evercore from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday, Zacks reports.

Other research analysts have also recently issued research reports about the stock. Jefferies Financial Group upgraded shares of Dollar Tree from a “moderate sell” rating to a “buy” rating in a report on Wednesday, July 8th. Morgan Stanley increased their target price on Dollar Tree from $130.00 to $145.00 and gave the company an “equal weight” rating in a report on Friday, August 28th. Barclays increased their price target on shares of Dollar Tree from $140.00 to $160.00 and gave the company an “overweight” rating in a research note on Friday, September 4th. BMO Capital Markets reissued a “market perform” rating and set a $135.00 price objective on shares of Dollar Tree in a report on Friday, August 28th. Finally, Wall Street Zen upgraded shares of Dollar Tree from a “hold” rating to a “buy” rating in a research report on Saturday, August 22nd. Ten equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Dollar Tree presently has an average rating of “Hold” and an average price target of $131.45.

Dollar Tree Price Performance

DLTR stock opened at $113.30 on Tuesday. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.13 and a quick ratio of 0.39. The firm has a market capitalization of $21.26 billion, a P/E ratio of 13.83, a P/E/G ratio of 1.07 and a beta of 0.66. The business’s 50-day moving average is $124.67 and its two-hundred day moving average is $113.99. Dollar Tree has a 1 year low of $84.71 and a 1 year high of $142.40.

Dollar Tree (NASDAQ:DLTR) last announced its quarterly earnings data on Thursday, August 27th. The company reported $2.70 EPS for the quarter, topping analysts’ consensus estimates of $1.15 by $1.55. Dollar Tree had a return on equity of 38.61% and a net margin of 8.03%.The business had revenue of $4.89 billion during the quarter, compared to the consensus estimate of $4.86 billion. During the same period in the previous year, the company posted $0.77 earnings per share. The business’s revenue for the quarter was up 7.0% on a year-over-year basis. Dollar Tree has set its Q3 2026 guidance at 0.800-0.950 EPS and its FY 2026 guidance at 7.700-8.050 EPS. Analysts anticipate that Dollar Tree will post 7.95 earnings per share 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 buy 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.

Insider Transactions at Dollar Tree

In related news, Director Stephanie Stahl sold 1,185 shares of the firm’s stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $131.47, for a total value of $155,791.95. Following the completion of the sale, the director owned 4,089 shares in the company, valued at $537,580.83. This trade represents a 22.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Robert Aflatooni sold 2,500 shares of Dollar Tree stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $126.01, for a total value of $315,025.00. Following the completion of the sale, the insider directly owned 24,820 shares in the company, valued at $3,127,568.20. This represents a 9.15% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 7.10% of the company’s stock.

Institutional Trading of Dollar Tree

Hedge funds have recently modified their holdings of the business. BlackRock Inc. purchased a new stake in shares of Dollar Tree in the second quarter valued at approximately $2,643,741,000. Pzena Investment Management LLC acquired a new position in Dollar Tree during the second quarter worth $1,176,661,000. Primecap Management Co. CA purchased a new position in Dollar Tree in the second quarter worth $455,845,000. Bank of America Corp DE purchased a new position in Dollar Tree in the second quarter worth $385,350,000. Finally, Norges Bank acquired a new stake in Dollar Tree in the fourth quarter valued at $260,858,000. 97.40% of the stock is owned by institutional investors and hedge funds.

About Dollar Tree

Dollar Tree, Inc operates discount variety stores under the Dollar Tree brand in the United States and Canada. Its stores offer a broad selection of everyday merchandise, including household supplies, food and beverages, health and personal-care products, seasonal items, toys, party supplies, and arts and crafts products.

The company’s Dollar Tree stores historically focused on merchandise priced at a fixed dollar point and have expanded to include multiple price points through initiatives such as Dollar Tree Plus.