Dollar Tree (NASDAQ:DLTR) Shares Gap Up – Should You Buy?

Dollar Tree, Inc. (NASDAQ:DLTR)’s share price gapped up before the market opened on Monday . The stock had previously closed at $67.55, but opened at $70.12. Dollar Tree shares last traded at $71.44, with a volume of 1,122,525 shares traded.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the company. Truist Financial set a $84.00 price objective on Dollar Tree in a research note on Thursday, March 27th. Loop Capital reiterated a “hold” rating on shares of Dollar Tree in a research note on Thursday, March 27th. Wells Fargo & Company boosted their price objective on Dollar Tree from $85.00 to $90.00 and gave the stock an “overweight” rating in a research report on Tuesday, April 1st. UBS Group reduced their target price on shares of Dollar Tree from $105.00 to $95.00 and set a “buy” rating on the stock in a report on Friday, March 21st. Finally, JPMorgan Chase & Co. dropped their price objective on shares of Dollar Tree from $88.00 to $78.00 and set a “neutral” rating on the stock in a research report on Thursday, March 27th. Fourteen investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $82.50.

Dollar Tree Stock Performance

The company has a current ratio of 1.03, a quick ratio of 0.17 and a debt-to-equity ratio of 0.32. The stock has a market cap of $15.67 billion, a price-to-earnings ratio of -15.27, a PEG ratio of 2.16 and a beta of 0.87. The stock’s 50 day moving average is $71.19 and its two-hundred day moving average is $70.30.

Dollar Tree (NASDAQ:DLTR) last released its quarterly earnings results on Wednesday, March 26th. The company reported $2.11 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.20 by ($0.09). Dollar Tree had a positive return on equity of 16.89% and a negative net margin of 3.34%. The company had revenue of $5 billion for the quarter, compared to analysts’ expectations of $8.23 billion. During the same period in the prior year, the business earned $2.55 EPS. The business’s quarterly revenue was up .7% compared to the same quarter last year. Analysts anticipate that Dollar Tree, Inc. will post 5.39 earnings per share for the current fiscal year.

Insider Transactions at Dollar Tree

In other news, Director William W. Douglas III purchased 701 shares of the business’s stock in a transaction that occurred on Wednesday, April 2nd. The stock was purchased at an average cost of $75.00 per share, with a total value of $52,575.00. Following the completion of the acquisition, the director now directly owns 1,377 shares of the company’s stock, valued at approximately $103,275. This trade represents a 103.70 % increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Company insiders own 6.80% of the company’s stock.

Hedge Funds Weigh In On Dollar Tree

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. GAMMA Investing LLC boosted its stake in shares of Dollar Tree by 5,689.5% in the first quarter. GAMMA Investing LLC now owns 329,482 shares of the company’s stock valued at $24,734,000 after buying an additional 323,791 shares in the last quarter. Versant Capital Management Inc raised its position in Dollar Tree by 330.9% in the first quarter. Versant Capital Management Inc now owns 1,741 shares of the company’s stock worth $131,000 after acquiring an additional 1,337 shares in the last quarter. Kera Capital Partners Inc. lifted its holdings in Dollar Tree by 10.5% in the first quarter. Kera Capital Partners Inc. now owns 3,352 shares of the company’s stock valued at $252,000 after acquiring an additional 318 shares during the period. Confluence Investment Management LLC boosted its position in shares of Dollar Tree by 2.8% during the 1st quarter. Confluence Investment Management LLC now owns 291,186 shares of the company’s stock worth $21,859,000 after purchasing an additional 7,919 shares in the last quarter. Finally, MassMutual Private Wealth & Trust FSB grew its stake in shares of Dollar Tree by 121.4% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 974 shares of the company’s stock worth $73,000 after purchasing an additional 534 shares during the period. Institutional investors and hedge funds own 97.40% of the company’s stock.

Dollar Tree Company Profile

Dollar Tree, Inc operates retail discount stores. The company operates in two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $ 1.25. It provides consumable merchandise, which includes everyday consumables, such as household paper and chemicals, food, candy, health, personal care products, and frozen and refrigerated food; variety merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, arts and crafts supplies, and other items; and seasonal goods that include Christmas, Easter, Halloween, and Valentine's Day merchandise.