Zacks Investment Research Upgrades Dollar Tree (DLTR) to “Hold”

Zacks Investment Research upgraded shares of Dollar Tree (NASDAQ:DLTR) from a sell rating to a hold rating in a research report report published on Wednesday morning.

According to Zacks, “Dollar Tree's strategic initiatives like improving store productivity and store expansion have aided the stock to outperform the industry in the last three months. The company delivered solid bottom line results in third-quarter fiscal 2018, returning to positive earnings surprise trend after reporting bottom line miss in the preceding three quarters. Moreover, an impressive comps trend reflects strength in both Dollar Tree and Family Dollar banners, which should drive growth. However, sales lagged estimates for the fourth straight quarter. The company also continued to witness cost pressures arising from higher domestic freight and investment in store wages, which hurt margins. Due to persistence of these pressures, the company lowered its sales view for fiscal 2018 and also narrowed earnings forecast. Additionally, the company’s results are likely to be hurt by the imposition of tariffs on Chinese goods.”

A number of other equities research analysts also recently weighed in on DLTR. Atlantic Securities raised Dollar Tree from a neutral rating to an overweight rating and set a $110.00 target price on the stock in a report on Monday, August 13th. OTR Global downgraded Dollar Tree to a positive rating in a report on Wednesday, August 22nd. BidaskClub downgraded Dollar Tree from a buy rating to a hold rating in a report on Thursday, August 23rd. Loop Capital reduced their target price on Dollar Tree from $120.00 to $106.00 and set a sell rating on the stock in a report on Thursday, August 30th. Finally, Barclays downgraded Dollar Tree from an overweight rating to an equal weight rating in a report on Thursday, August 30th. One analyst has rated the stock with a sell rating, sixteen have issued a hold rating and twelve have issued a buy rating to the company’s stock. Dollar Tree currently has an average rating of Hold and a consensus price target of $101.64.

Shares of DLTR stock opened at $83.39 on Wednesday. The firm has a market capitalization of $20.52 billion, a price-to-earnings ratio of 17.16, a price-to-earnings-growth ratio of 1.15 and a beta of 0.65. Dollar Tree has a fifty-two week low of $78.78 and a fifty-two week high of $116.65. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.48 and a current ratio of 2.22.

Dollar Tree (NASDAQ:DLTR) last issued its earnings results on Thursday, November 29th. The company reported $1.18 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.15 by $0.03. The firm had revenue of $5.54 billion for the quarter, compared to the consensus estimate of $5.55 billion. Dollar Tree had a return on equity of 17.11% and a net margin of 7.64%. The company’s revenue was up 4.2% compared to the same quarter last year. During the same quarter last year, the business posted $1.01 EPS. On average, analysts forecast that Dollar Tree will post 5.45 earnings per share for the current year.

In other news, Director Lemuel E. Lewis acquired 1,210 shares of the business’s stock in a transaction that occurred on Thursday, September 27th. The shares were bought at an average price of $82.75 per share, with a total value of $100,127.50. Following the acquisition, the director now directly owns 20,114 shares in the company, valued at approximately $1,664,433.50. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Company insiders own 1.50% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DLTR. Price Capital Management Inc. acquired a new position in Dollar Tree during the 3rd quarter worth about $106,000. SRS Capital Advisors Inc. lifted its holdings in Dollar Tree by 252.9% during the 3rd quarter. SRS Capital Advisors Inc. now owns 1,408 shares of the company’s stock worth $115,000 after buying an additional 1,009 shares during the period. Signet Financial Management LLC acquired a new position in Dollar Tree during the 2nd quarter worth about $121,000. Stelac Advisory Services LLC acquired a new position in Dollar Tree during the 3rd quarter worth about $121,000. Finally, Bbva Compass Bancshares Inc. acquired a new position in Dollar Tree during the 3rd quarter worth about $147,000. 92.14% of the stock is currently owned by institutional investors.

About Dollar Tree

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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