According to Zacks, “Dollar Tree remains prone to the challenging retail environment and persistent currency headwinds. This led the company to revert to its dismal earnings trend in second-quarter fiscal 2016. With this, the company delivered an average negative surprise of 0.6% in the trailing four quarters. Additionally, the company expects integration costs and cannibalization to continue to be headwinds. Further, the company curtailed its sales outlook for fiscal 2016, posing concern. However, Dollar Tree has been doing well on the back of its long-term strategies and growth initiatives including store expansion and productivity enhancement, tapping of new markets and incorporating innovative sales channels to serve its patrons better. Also, Dollar Tree is well on track with the integration of Family Dollar, which is expected to generate synergies in the long run. “
Several other brokerages also recently commented on DLTR. Deutsche Bank AG raised shares of Dollar Tree from a hold rating to a buy rating and increased their price objective for the company from $82.00 to $110.00 in a research note on Monday, August 1st. MKM Partners reissued a buy rating and issued a $104.00 price objective (up previously from $80.00) on shares of Dollar Tree in a research note on Tuesday, August 23rd. Buckingham Research reissued a buy rating and issued a $106.00 price objective on shares of Dollar Tree in a research note on Wednesday, July 6th. Vetr raised shares of Dollar Tree from a hold rating to a strong-buy rating and set a $112.00 price objective for the company in a research note on Wednesday, July 6th. Finally, Goldman Sachs Group Inc. reissued a buy rating on shares of Dollar Tree in a research note on Wednesday, July 6th. Four equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and twelve have assigned a buy rating to the stock. The stock has an average rating of Hold and a consensus target price of $91.77.
Shares of Dollar Tree (NASDAQ:DLTR) opened at 75.12 on Monday. Dollar Tree has a one year low of $60.31 and a one year high of $99.93. The company has a 50 day moving average of $83.61 and a 200-day moving average of $86.68. The firm has a market cap of $17.71 billion, a price-to-earnings ratio of 24.92 and a beta of 0.54.
Dollar Tree (NASDAQ:DLTR) last issued its quarterly earnings results on Thursday, August 25th. The company reported $0.72 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.73 by $0.01. Dollar Tree had a return on equity of 16.29% and a net margin of 3.50%. The firm had revenue of $5.02 billion for the quarter, compared to the consensus estimate of $5.08 billion. During the same period last year, the company posted $0.67 EPS. The business’s revenue was up 66.0% on a year-over-year basis. On average, analysts expect that Dollar Tree will post $3.81 EPS for the current year.
In other news, Director Lemuel E. Lewis purchased 1,560 shares of the company’s stock in a transaction that occurred on Tuesday, September 13th. The shares were bought at an average cost of $80.00 per share, with a total value of $124,800.00. Following the completion of the transaction, the director now directly owns 11,029 shares of the company’s stock, valued at $882,320. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Conrad M. Hall purchased 5,000 shares of the company’s stock in a transaction that occurred on Monday, August 29th. The shares were purchased at an average cost of $85.60 per share, for a total transaction of $428,000.00. Following the completion of the transaction, the director now directly owns 799 shares of the company’s stock, valued at $68,394.40. The disclosure for this purchase can be found here. Corporate insiders own 4.10% of the company’s stock.
A number of hedge funds have recently made changes to their positions in the company. Lone Pine Capital LLC raised its stake in shares of Dollar Tree by 15.1% in the second quarter. Lone Pine Capital LLC now owns 13,362,151 shares of the company’s stock valued at $1,259,249,000 after buying an additional 1,755,667 shares in the last quarter. WestEnd Advisors LLC bought a new stake in shares of Dollar Tree during the second quarter valued at approximately $94,632,000. Atlanta Capital Management Co. L L C bought a new stake in shares of Dollar Tree during the second quarter valued at approximately $78,885,000. Standard Life Investments LTD raised its stake in shares of Dollar Tree by 38.5% in the second quarter. Standard Life Investments LTD now owns 2,797,544 shares of the company’s stock valued at $263,654,000 after buying an additional 777,451 shares in the last quarter. Finally, Victory Capital Management Inc. raised its stake in shares of Dollar Tree by 23,255.8% in the second quarter. Victory Capital Management Inc. now owns 719,592 shares of the company’s stock valued at $67,815,000 after buying an additional 716,511 shares in the last quarter. 94.37% of the stock is currently owned by institutional investors and hedge funds.
About Dollar Tree
Dollar Tree, Inc is an operator of discount variety stores. The Company operates approximately 13,851 discount variety retail stores. The Company’s segments include Dollar Tree and Family Dollar. The Dollar Tree segment operates discount variety stores offering merchandise at a fixed price. The Family Dollar segment operates a chain of general merchandise retail discount stores providing consumers with a selection of merchandise in neighborhood stores.
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