Dollar Tree (NASDAQ:DLTR) Trading 6.4% Higher Following Earnings Beat

Dollar Tree, Inc. (NASDAQ:DLTR)’s stock price traded up 6.4% during trading on Thursday following a better than expected earnings announcement. The company traded as high as $93.25 and last traded at $94.26. 2,472,997 shares traded hands during trading, a decline of 41% from the average session volume of 4,169,384 shares. The stock had previously closed at $88.62.

The company reported $1.26 EPS for the quarter, topping analysts’ consensus estimates of $1.21 by $0.05. Dollar Tree had a positive return on equity of 16.89% and a negative net margin of 3.34%. The company had revenue of $4.64 billion for the quarter, compared to the consensus estimate of $4.52 billion. During the same quarter last year, the business posted $1.43 EPS. Dollar Tree’s quarterly revenue was up 11.3% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. Morgan Stanley increased their target price on Dollar Tree from $80.00 to $96.00 and gave the stock an “equal weight” rating in a report on Thursday. JPMorgan Chase & Co. raised Dollar Tree from a “neutral” rating to an “overweight” rating and increased their target price for the stock from $72.00 to $111.00 in a report on Thursday. Bank of America reduced their target price on Dollar Tree from $75.00 to $70.00 and set an “underperform” rating on the stock in a report on Tuesday, April 8th. Guggenheim reaffirmed a “buy” rating and set a $100.00 target price on shares of Dollar Tree in a report on Thursday. Finally, Piper Sandler increased their price target on Dollar Tree from $72.00 to $93.00 and gave the stock a “neutral” rating in a research report on Thursday. One analyst has rated the stock with a sell rating, fourteen have given a hold rating and seven have issued a buy rating to the company. Based on data from MarketBeat.com, Dollar Tree has an average rating of “Hold” and an average price target of $90.26.

Insider Activity at Dollar Tree

In other Dollar Tree news, Director William W. Douglas III bought 701 shares of the stock in a transaction that occurred on Wednesday, April 2nd. The shares were purchased at an average cost of $75.00 per share, for a total transaction of $52,575.00. Following the transaction, the director now directly owns 1,377 shares in the company, valued at $103,275. The trade was a 103.70% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Aditya Maheshwari sold 1,238 shares of the firm’s stock in a transaction that occurred on Monday, April 14th. The shares were sold at an average price of $74.70, for a total value of $92,478.60. Following the completion of the sale, the chief accounting officer now owns 4,231 shares in the company, valued at approximately $316,055.70. This represents a 22.64% decrease in their ownership of the stock. The disclosure for this sale can be found here. 6.60% of the stock is owned by insiders.

Institutional Trading of Dollar Tree

Several large investors have recently added to or reduced their stakes in the business. Blue Trust Inc. increased its position in shares of Dollar Tree by 47.8% during the 4th quarter. Blue Trust Inc. now owns 1,429 shares of the company’s stock valued at $100,000 after purchasing an additional 462 shares during the period. Caprock Group LLC acquired a new position in shares of Dollar Tree during the 4th quarter valued at $382,000. E. Ohman J or Asset Management AB increased its position in shares of Dollar Tree by 24.4% during the 4th quarter. E. Ohman J or Asset Management AB now owns 10,700 shares of the company’s stock valued at $802,000 after purchasing an additional 2,100 shares during the period. Kercheville Advisors LLC acquired a new position in shares of Dollar Tree during the 4th quarter valued at $300,000. Finally, Strategic Financial Concepts LLC acquired a new position in shares of Dollar Tree during the 4th quarter valued at $1,280,000. 97.40% of the stock is currently owned by institutional investors and hedge funds.

Dollar Tree Trading Up 9.1%

The company has a market capitalization of $20.79 billion, a price-to-earnings ratio of -20.27, a PEG ratio of 2.16 and a beta of 0.84. The firm has a 50-day moving average price of $82.10 and a 200-day moving average price of $75.13. The company has a current ratio of 1.03, a quick ratio of 0.17 and a debt-to-equity ratio of 0.32.

Dollar Tree Company Profile

Dollar Tree, Inc operates retail discount stores. The company operates in two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $ 1.25. It provides consumable merchandise, which includes everyday consumables, such as household paper and chemicals, food, candy, health, personal care products, and frozen and refrigerated food; variety merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, arts and crafts supplies, and other items; and seasonal goods that include Christmas, Easter, Halloween, and Valentine's Day merchandise.