Dollar Tree (NASDAQ:DLTR) Stock Price Up 4.3% – Still a Buy?

Shares of Dollar Tree, Inc. (NASDAQ:DLTR) traded up 4.3% during mid-day trading on Wednesday. The company traded as high as $120.66 and last traded at $121.2420. 845,703 shares were traded during mid-day trading, a decline of 73% from the average session volume of 3,138,087 shares. The stock had previously closed at $116.28.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on DLTR shares. UBS Group boosted their target price on shares of Dollar Tree from $145.00 to $150.00 and gave the company a “buy” rating in a report on Friday, August 28th. Wells Fargo & Company increased their price target on shares of Dollar Tree from $145.00 to $155.00 and gave the stock an “overweight” rating in a research note on Monday, August 17th. Piper Sandler lifted their price target on shares of Dollar Tree from $114.00 to $121.00 and gave the company a “neutral” rating in a research report on Monday, August 31st. Truist Financial boosted their price objective on shares of Dollar Tree from $136.00 to $138.00 and gave the stock a “buy” rating in a research note on Tuesday, August 25th. Finally, Loop Capital raised shares of Dollar Tree from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $130.00 to $140.00 in a research note on Thursday, October 1st. Eleven 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. Based on data from MarketBeat.com, Dollar Tree presently has an average rating of “Hold” and a consensus target price of $133.14.

Dollar Tree Price Performance

The firm has a fifty day moving average of $122.43 and a 200 day moving average of $114.73. The company has a market capitalization of $23.42 billion, a P/E ratio of 15.24, a P/E/G ratio of 1.13 and a beta of 0.71. The company has a current ratio of 1.13, a quick ratio of 0.39 and a debt-to-equity ratio of 0.86.

Dollar Tree (NASDAQ:DLTR) last issued its quarterly earnings data on Thursday, August 27th. The company reported $2.70 earnings per share for the quarter, topping the consensus estimate of $1.15 by $1.55. The firm had revenue of $4.89 billion for the quarter, compared to analysts’ expectations of $4.86 billion. Dollar Tree had a net margin of 8.03% and a return on equity of 38.61%. The business’s quarterly revenue was up 7.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.77 EPS. 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. On average, equities research analysts anticipate that Dollar Tree, Inc. will post 7.93 EPS for the current year.

Dollar Tree announced that its Board of Directors has approved a share repurchase program on Thursday, July 2nd that authorizes the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 10.7% of its shares through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its shares are undervalued.

Insider Activity

In related news, Director Stephanie Stahl sold 1,185 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $131.47, for a total transaction of $155,791.95. Following the completion of the transaction, the director directly owned 4,089 shares in the company, valued at approximately $537,580.83. The trade was a 22.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Robert Aflatooni sold 2,500 shares of the stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $126.01, for a total transaction of $315,025.00. Following the completion of the sale, the insider directly owned 24,820 shares of the company’s stock, valued at $3,127,568.20. This represents a 9.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 7.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Dollar Tree

A number of hedge funds have recently modified their holdings of DLTR. BlackRock Inc. bought a new stake in shares of Dollar Tree during the 2nd quarter valued at $2,643,741,000. Pzena Investment Management LLC purchased a new stake in Dollar Tree in the 2nd quarter worth $1,176,661,000. Primecap Management Co. CA purchased a new stake in Dollar Tree in the 2nd quarter worth $455,845,000. Bank of America Corp DE purchased a new stake in Dollar Tree in the 2nd quarter worth $385,350,000. Finally, Caisse de depot et placement du Quebec bought a new stake in Dollar Tree during the second quarter valued at about $205,631,000. 97.40% of the stock is currently owned by institutional investors.

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.