Zacks Investment Research downgraded shares of Dollar Tree, Inc. (NASDAQ:DLTR) from a buy rating to a hold rating in a research note issued to investors on Tuesday.
According to Zacks, “Dollar Tree has been gaining from the integration of Family Dollar, which is contributing significantly to the company’s results. This has helped the stock to surpass the industry year to date. In second quarter fiscal 2017, the company achieved comps growth for the 38th straight time, while both top and bottom line grew year over year and topped the Zacks Consensus mark. Apart from solid performance at stores, growth of the company’s online business – Dollar Tree Direct also fueled results. Reduced merchandise and freight costs, alongside lower markdowns also boosted margins. Based on these results and expected benefits from Family Dollar, management remains confident of the second half. Consequently, it raised fiscal 2017 view. However, volatile consumer behavior remains a concern for Dollar Tree. Also, significant global exposure may pose threats. Estimates have been stable lately ahead of the third quarter earnings release.”
A number of other brokerages also recently commented on DLTR. Loop Capital downgraded shares of Dollar Tree from a buy rating to a hold rating and set a $88.00 target price for the company. in a report on Friday, October 13th. Buckingham Research reiterated a buy rating and issued a $87.00 target price on shares of Dollar Tree in a report on Wednesday, August 9th. Bank of America Corporation started coverage on shares of Dollar Tree in a report on Friday, August 25th. They issued a buy rating and a $91.00 target price for the company. Piper Jaffray Companies reiterated a hold rating and issued a $85.00 target price on shares of Dollar Tree in a report on Friday, September 29th. Finally, BidaskClub upgraded shares of Dollar Tree from a hold rating to a buy rating in a report on Tuesday, August 8th. Twelve equities research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company. Dollar Tree has an average rating of Buy and an average price target of $91.91.
Shares of Dollar Tree (DLTR) traded up $2.63 during trading on Tuesday, reaching $93.75. 2,536,968 shares of the company’s stock were exchanged, compared to its average volume of 1,920,000. The company has a market capitalization of $22.20 billion, a P/E ratio of 22.19, a PEG ratio of 1.51 and a beta of 0.59. The company has a debt-to-equity ratio of 0.95, a current ratio of 1.83 and a quick ratio of 0.43. Dollar Tree has a fifty-two week low of $65.63 and a fifty-two week high of $94.80.
Dollar Tree (NASDAQ:DLTR) last announced its earnings results on Thursday, August 24th. The company reported $0.99 EPS for the quarter, topping the Zacks’ consensus estimate of $0.87 by $0.12. The business had revenue of $5.28 billion during the quarter, compared to the consensus estimate of $5.24 billion. Dollar Tree had a net margin of 4.37% and a return on equity of 18.07%. The firm’s revenue was up 5.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.72 earnings per share. equities research analysts predict that Dollar Tree will post 4.66 EPS for the current year.
In other Dollar Tree news, Chairman Macon F. Brock, Jr. sold 150,000 shares of the company’s stock in a transaction that occurred on Wednesday, November 1st. The stock was sold at an average price of $91.13, for a total value of $13,669,500.00. Following the sale, the chairman now owns 1,128,795 shares in the company, valued at approximately $102,867,088.35. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Gary M. Philbin sold 2,795 shares of the company’s stock in a transaction that occurred on Tuesday, September 12th. The stock was sold at an average price of $84.50, for a total value of $236,177.50. Following the completion of the sale, the insider now owns 34,532 shares in the company, valued at approximately $2,917,954. The disclosure for this sale can be found here. In the last 90 days, insiders sold 251,449 shares of company stock worth $22,808,837. Insiders own 4.10% of the company’s stock.
A number of institutional investors have recently added to or reduced their stakes in DLTR. FMR LLC boosted its position in Dollar Tree by 49.4% in the 2nd quarter. FMR LLC now owns 17,309,462 shares of the company’s stock worth $1,210,277,000 after purchasing an additional 5,724,495 shares in the last quarter. Maverick Capital Ltd. boosted its position in Dollar Tree by 86.7% in the 2nd quarter. Maverick Capital Ltd. now owns 8,135,605 shares of the company’s stock worth $568,842,000 after purchasing an additional 3,777,579 shares in the last quarter. BlackRock Inc. boosted its position in Dollar Tree by 10.3% in the 2nd quarter. BlackRock Inc. now owns 15,904,087 shares of the company’s stock worth $1,112,013,000 after purchasing an additional 1,479,936 shares in the last quarter. Renaissance Technologies LLC boosted its position in Dollar Tree by 116.0% in the 2nd quarter. Renaissance Technologies LLC now owns 1,801,303 shares of the company’s stock worth $125,947,000 after purchasing an additional 967,500 shares in the last quarter. Finally, Vanguard Group Inc. boosted its position in Dollar Tree by 3.2% in the 2nd quarter. Vanguard Group Inc. now owns 22,359,098 shares of the company’s stock worth $1,563,349,000 after purchasing an additional 691,393 shares in the last quarter. Institutional investors and hedge funds own 90.73% of the company’s stock.
About Dollar Tree
Dollar Tree, Inc is an operator of discount variety stores. As of January 28, 2017, the Company operated 14,334 stores in 48 states and the District of Columbia, and five Canadian provinces. Its segments include Dollar Tree and Family Dollar. The Dollar Tree segment is the operator of discount variety stores offering merchandise at a fixed price.
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