Dollar Tree Inc. (DLTR) Downgraded to “Sell” at Zacks Investment Research
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. “
DLTR has been the topic of a number of other research reports. MKM Partners restated a buy rating and issued a $104.00 price target (up previously from $80.00) on shares of Dollar Tree in a research report on Tuesday, August 23rd. Deutsche Bank AG upgraded Dollar Tree from a hold rating to a buy rating and raised their price target for the stock from $82.00 to $110.00 in a research report on Monday, August 1st. Goldman Sachs Group Inc. restated a buy rating on shares of Dollar Tree in a research report on Wednesday, July 6th. Buckingham Research restated a buy rating and issued a $106.00 price target on shares of Dollar Tree in a research report on Wednesday, July 6th. Finally, Vetr cut Dollar Tree from a strong-buy rating to a buy rating and set a $86.00 price target on the stock. in a research report on Tuesday, September 27th. Four investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and thirteen have assigned a buy rating to the company. The company currently has a consensus rating of Hold and an average price target of $91.82.
Shares of Dollar Tree (NASDAQ:DLTR) traded down 3.06% during mid-day trading on Monday, reaching $77.10. The company’s stock had a trading volume of 1,039,058 shares. Dollar Tree has a 12 month low of $60.31 and a 12 month high of $99.93. The company has a 50-day moving average of $84.76 and a 200-day moving average of $86.79. The firm has a market cap of $18.18 billion, a PE ratio of 25.58 and a beta of 0.54.
Dollar Tree (NASDAQ:DLTR) last posted its quarterly earnings data on Thursday, August 25th. The company reported $0.72 earnings per share for the quarter, missing the consensus estimate of $0.73 by $0.01. The firm had revenue of $5.02 billion for the quarter, compared to the consensus estimate of $5.08 billion. Dollar Tree had a return on equity of 16.29% and a net margin of 3.50%. The firm’s quarterly revenue was up 66.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.67 EPS. On average, analysts predict that Dollar Tree will post $3.81 earnings per share for the current year.
In related news, Director Lemuel E. Lewis purchased 1,470 shares of the firm’s stock in a transaction that occurred on Tuesday, August 30th. The stock was acquired at an average price of $85.00 per share, for a total transaction of $124,950.00. Following the completion of the acquisition, the director now owns 9,469 shares of the company’s stock, valued at approximately $804,865. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Conrad M. Hall purchased 5,000 shares of the firm’s stock in a transaction that occurred on Monday, August 29th. The shares were bought at an average price of $85.60 per share, with a total value of $428,000.00. Following the acquisition, the director now directly owns 799 shares of the company’s stock, valued at approximately $68,394.40. The disclosure for this purchase can be found here. Insiders own 4.10% of the company’s stock.
A number of large investors have recently made changes to their positions in the company. Tower Research Capital LLC TRC increased its stake in shares of Dollar Tree by 1,439.1% in the second quarter. Tower Research Capital LLC TRC now owns 1,062 shares of the company’s stock valued at $100,000 after buying an additional 993 shares during the period. Harel Insurance Investments & Financial Services Ltd. bought a new stake in shares of Dollar Tree during the second quarter valued at about $108,000. Signaturefd LLC increased its stake in shares of Dollar Tree by 1.5% in the second quarter. Signaturefd LLC now owns 1,266 shares of the company’s stock valued at $119,000 after buying an additional 19 shares during the period. Tredje AP fonden bought a new stake in shares of Dollar Tree during the second quarter valued at about $120,000. Finally, Sun Life Financial INC bought a new stake in shares of Dollar Tree during the first quarter valued at about $107,775,000. Institutional investors and hedge funds own 94.37% of the company’s stock.
Dollar Tree Company Profile
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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