Dollar Tree (NASDAQ:DLTR) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.
According to Zacks, “Dollar Tree has underperformed the industry in the last three months. Though Dollar Tree’s earnings and sales lagged estimates in fourth-quarter fiscal 2017, it improved year over year. Earnings gained from higher sales, rise in comparable store sales (comps) and higher margins. Meanwhile, sales benefited from solid performance at both Dollar Tree and Family Dollar stores. Comps improved for the 40th straight quarter, while reduced merchandise costs, lower markdowns and occupancy expenses aided margins. Moreover, the company is on track with the Family Dollar integration and re-banner process, which is likely to generate run rate savings of about $300 million in three years. Based on these results and expected benefits from Family Dollar, the company provided a solid view for the first quarter and fiscal 2018. However, volatile consumer behavior remains a concern for Dollar Tree. Also, significant global exposure may pose threats.”
A number of other brokerages also recently commented on DLTR. MKM Partners set a $96.00 target price on shares of Dollar Tree and gave the stock a “hold” rating in a research note on Monday, November 20th. Moffett Nathanson assumed coverage on shares of Dollar Tree in a research report on Monday, December 4th. They set a “buy” rating for the company. Royal Bank of Canada reiterated a “top pick” rating and set a $111.00 price target (up from $102.00) on shares of Dollar Tree in a research report on Wednesday, November 22nd. BidaskClub cut shares of Dollar Tree from a “buy” rating to a “hold” rating in a research report on Thursday, March 1st. Finally, Loop Capital reiterated a “hold” rating and set a $92.00 price target (down from $100.00) on shares of Dollar Tree in a research report on Wednesday, March 7th. Twelve research analysts have rated the stock with a hold rating, nineteen have issued a buy rating and one has issued a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and an average target price of $105.38.
Dollar Tree (NASDAQ:DLTR) last issued its earnings results on Wednesday, March 7th. The company reported $1.89 EPS for the quarter, missing analysts’ consensus estimates of $1.90 by ($0.01). Dollar Tree had a return on equity of 18.68% and a net margin of 7.71%. The firm had revenue of $6.36 billion for the quarter, compared to analysts’ expectations of $6.39 billion. During the same period last year, the firm earned $1.36 earnings per share. Dollar Tree’s revenue for the quarter was up 12.9% on a year-over-year basis. equities analysts predict that Dollar Tree will post 5.65 EPS for the current fiscal year.
In other Dollar Tree news, Director Conrad M. Hall acquired 10,000 shares of the company’s stock in a transaction that occurred on Friday, March 9th. The stock was purchased at an average price of $91.83 per share, for a total transaction of $918,300.00. Following the completion of the acquisition, the director now owns 799 shares of the company’s stock, valued at approximately $73,372.17. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 2.90% of the company’s stock.
Several hedge funds have recently made changes to their positions in the stock. DnB Asset Management AS grew its holdings in shares of Dollar Tree by 2.1% in the fourth quarter. DnB Asset Management AS now owns 24,355 shares of the company’s stock valued at $2,614,000 after purchasing an additional 500 shares in the last quarter. Bronfman E.L. Rothschild L.P. grew its holdings in shares of Dollar Tree by 38.8% in the fourth quarter. Bronfman E.L. Rothschild L.P. now owns 1,890 shares of the company’s stock valued at $203,000 after purchasing an additional 528 shares in the last quarter. Global X MANAGEMENT CO LLC grew its holdings in Dollar Tree by 22.7% during the 3rd quarter. Global X MANAGEMENT CO LLC now owns 3,023 shares of the company’s stock worth $262,000 after acquiring an additional 559 shares in the last quarter. Amalgamated Bank grew its holdings in Dollar Tree by 2.1% during the 3rd quarter. Amalgamated Bank now owns 27,793 shares of the company’s stock worth $2,413,000 after acquiring an additional 559 shares in the last quarter. Finally, Advisor Partners LLC grew its holdings in Dollar Tree by 17.6% during the 4th quarter. Advisor Partners LLC now owns 3,800 shares of the company’s stock worth $436,000 after acquiring an additional 568 shares in the last quarter. Hedge funds and other institutional investors own 90.97% of the company’s stock.
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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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