Zacks Investment Research Downgrades Dollar Tree (DLTR) to Hold

Dollar Tree (NASDAQ:DLTR) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday, Zacks.com reports.

According to Zacks, “Dollar Tree has outperformed the industry in the past six months, driven by strategic initiatives like improving store productivity and store expansion. Further, the company delivered top and bottom line beat in fourth-quarter fiscal 2018. With this, it reverted to positive sales surprise after four straight misses, with second consecutive earnings beat. Moreover, a robust comps trend reflects strength in Dollar Tree and Family Dollar banners, which should drive growth. Notably, the company expects store-optimization measures to lift comps by up to 1.5%, after its implementation by the end of fiscal 2019. However, management issued a muted earnings view for first-quarter and fiscal 2019. Further, the company reported fourth straight quarter of soft margins due to persistent cost pressures arising from higher domestic freight and investments in store wages. This might persist in fiscal 2019.”

Several other brokerages have also recently weighed in on DLTR. Piper Jaffray Companies raised their price target on shares of Dollar Tree from $113.00 to $125.00 and gave the company an “overweight” rating in a research report on Thursday, April 25th. ValuEngine raised shares of Dollar Tree from a “hold” rating to a “buy” rating in a research report on Wednesday, May 1st. Morgan Stanley raised their price target on shares of Dollar Tree from $92.00 to $101.00 and gave the company an “equal weight” rating in a research report on Wednesday, April 24th. BidaskClub raised shares of Dollar Tree from a “hold” rating to a “buy” rating in a research report on Tuesday, April 23rd. Finally, Loop Capital cut shares of Dollar Tree from a “buy” rating to a “hold” rating and dropped their price target for the company from $115.00 to $105.00 in a research report on Monday, April 8th. Twelve analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company’s stock. Dollar Tree presently has an average rating of “Buy” and a consensus target price of $102.89.

Shares of DLTR opened at $98.75 on Tuesday. The company has a debt-to-equity ratio of 0.76, a current ratio of 2.05 and a quick ratio of 0.36. The stock has a market capitalization of $23.55 billion, a PE ratio of 18.12, a PEG ratio of 1.94 and a beta of 0.44. Dollar Tree has a one year low of $78.78 and a one year high of $111.61.

Dollar Tree (NASDAQ:DLTR) last issued its earnings results on Wednesday, March 6th. The company reported $1.93 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.92 by $0.01. Dollar Tree had a positive return on equity of 18.21% and a negative net margin of 6.97%. The company had revenue of $6.21 billion during the quarter, compared to the consensus estimate of $6.19 billion. During the same period last year, the business posted $1.89 EPS. The firm’s revenue for the quarter was down 2.4% compared to the same quarter last year. On average, sell-side analysts forecast that Dollar Tree will post 5.23 earnings per share for the current fiscal year.

In other Dollar Tree news, CEO Gary M. Philbin sold 9,614 shares of Dollar Tree stock in a transaction that occurred on Wednesday, April 24th. The shares were sold at an average price of $110.00, for a total transaction of $1,057,540.00. Following the transaction, the chief executive officer now owns 84,665 shares of the company’s stock, valued at approximately $9,313,150. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider William A. Old, Jr. sold 6,580 shares of Dollar Tree stock in a transaction that occurred on Monday, March 11th. The stock was sold at an average price of $102.75, for a total transaction of $676,095.00. Following the transaction, the insider now directly owns 8,960 shares in the company, valued at approximately $920,640. The disclosure for this sale can be found here. In the last three months, insiders have sold 43,561 shares of company stock worth $4,537,642. Insiders own 1.50% of the company’s stock.

Several institutional investors have recently bought and sold shares of the business. Executive Wealth Management LLC bought a new stake in shares of Dollar Tree in the 4th quarter worth approximately $26,000. Oregon Public Employees Retirement Fund raised its holdings in shares of Dollar Tree by 8,821.2% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 2,327,908 shares of the company’s stock worth $26,000 after purchasing an additional 2,301,814 shares during the period. Capital Investment Advisory Services LLC bought a new stake in shares of Dollar Tree in the 4th quarter worth approximately $31,000. Riverview Trust Co bought a new stake in shares of Dollar Tree in the 4th quarter worth approximately $32,000. Finally, Parkside Financial Bank & Trust grew its stake in Dollar Tree by 47.3% in the 1st quarter. Parkside Financial Bank & Trust now owns 302 shares of the company’s stock valued at $32,000 after buying an additional 97 shares in the last quarter. 92.86% of the stock is currently owned by hedge funds and other institutional investors.

Dollar Tree Company Profile

Dollar Tree, Inc operates discount variety retail stores. 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, as well as everyday consumables, such as household paper and chemicals, and frozen and refrigerated food; variety merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, and other items; and seasonal goods that include Valentine's Day, Easter, Halloween, and Christmas merchandise.

Recommended Story: What is a Reverse Stock Split?

Get a free copy of the Zacks research report on Dollar Tree (DLTR)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Dollar Tree (NASDAQ:DLTR)

Receive News & Ratings for Dollar Tree Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dollar Tree and related companies with MarketBeat.com's FREE daily email newsletter.