Dollar Tree (DLTR) Shares Down 14.3% After Earnings Miss

Dollar Tree (NASDAQ:DLTR)’s share price traded down 14.3% during trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $81.31 and last traded at $82.59. 18,424,139 shares traded hands during mid-day trading, an increase of 554% from the average session volume of 2,818,520 shares. The stock had previously closed at $96.35.

The company reported $1.19 EPS for the quarter, missing analysts’ consensus estimates of $1.23 by ($0.04). Dollar Tree had a return on equity of 18.68% and a net margin of 7.71%. The company had revenue of $5.55 billion during the quarter, compared to the consensus estimate of $5.56 billion. During the same period last year, the firm posted $0.98 EPS. The company’s revenue for the quarter was up 5.0% on a year-over-year basis.

A number of equities research analysts have commented on the stock. Moffett Nathanson downgraded shares of Dollar Tree from a “buy” rating to a “neutral” rating in a research report on Friday, May 11th. Credit Suisse Group set a $114.00 target price on shares of Dollar Tree and gave the stock a “buy” rating in a research report on Tuesday. Loop Capital raised shares of Dollar Tree from a “hold” rating to a “buy” rating and set a $120.00 target price for the company in a research report on Wednesday, April 18th. BMO Capital Markets dropped their price target on shares of Dollar Tree from $115.00 to $97.00 and set a “hold” rating on the stock in a research note on Thursday, March 8th. Finally, Cleveland Research cut shares of Dollar Tree from a “buy” rating to a “neutral” rating in a research note on Wednesday, May 16th. Eleven investment analysts have rated the stock with a hold rating, eighteen have issued a buy rating and one has assigned a strong buy rating to the stock. The company presently has an average rating of “Buy” and a consensus target price of $110.31.

In related news, Director Arnold S. Barron sold 6,023 shares of Dollar Tree stock in a transaction on Tuesday, March 20th. The shares were sold at an average price of $94.49, for a total transaction of $569,113.27. Following the transaction, the director now owns 26,667 shares in the company, valued at approximately $2,519,764.83. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Conrad M. Hall bought 10,000 shares of the stock in a transaction that occurred on Friday, March 9th. The shares were purchased at an average price of $91.83 per share, for a total transaction of $918,300.00. Following the purchase, the director now owns 799 shares in the company, valued at approximately $73,372.17. The disclosure for this purchase can be found here. In the last 90 days, insiders have sold 14,861 shares of company stock worth $1,398,752. 1.50% of the stock is owned by corporate insiders.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. CenterStar Asset Management LLC purchased a new position in shares of Dollar Tree during the 1st quarter valued at $102,000. Exane Derivatives purchased a new position in shares of Dollar Tree during the 4th quarter valued at $104,000. Dupont Capital Management Corp lifted its stake in Dollar Tree by 77.0% in the 1st quarter. Dupont Capital Management Corp now owns 1,632 shares of the company’s stock worth $155,000 after purchasing an additional 710 shares in the last quarter. Bronfman E.L. Rothschild L.P. lifted its stake in Dollar Tree by 38.8% in the 4th quarter. Bronfman E.L. Rothschild L.P. now owns 1,890 shares of the company’s stock worth $203,000 after purchasing an additional 528 shares in the last quarter. Finally, FineMark National Bank & Trust purchased a new stake in Dollar Tree in the 4th quarter worth $210,000. Institutional investors own 91.17% of the company’s stock.

The company has a market capitalization of $22.56 billion, a P/E ratio of 16.99, a price-to-earnings-growth ratio of 1.14 and a beta of 0.83. The company has a current ratio of 1.60, a quick ratio of 0.49 and a debt-to-equity ratio of 0.66.

Dollar Tree Company Profile

Dollar Tree, Inc operates discount variety retail stores in the United States and Canada. It operates through two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $1.00. It provides consumable merchandise, including candy and food, and health and beauty care products, as well as everyday consumables, such as household paper and chemicals, and frozen and refrigerated food; various merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, and other items; and seasonal goods, which include Valentine's Day, Easter, Halloween, and Christmas merchandise.

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