Taking on analysts’ expectations and winning: Dollar Tree Inc. (DLTR)

Dollar Tree Inc. (NASDAQ: DLTR) stock jumped 0.53% on Thursday to $113.34 against a previous-day closing price of $112.74. With 2.2 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.19 million shares. During the session, the Discount Stores company that operates in wider Consumer Defensive sector, reached to the highest price of $113.43 whereas the lowest price it dropped to was $112.19. The 52-week range on DLTR shows that it touched its highest point at $170.36 and its lowest point at $112.16 during that stretch. It currently has a 1-year price target of $154.31. Beta for the stock currently stands at 0.74.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DLTR was down-trending over the past week, with a drop of -2.76%, but this was down by -21.56% over a month. Three-month performance dropped to -17.74% while six-month performance fell -19.22%. The stock lost -18.17% in the past year, while it has lost -19.87% so far this year. A look at the trailing 12-month EPS for DLTR yields 5.49 with Next year EPS estimates of 7.10. For the next quarter, that number is 1.01. This implies an EPS growth rate of 24.30% for this year and 18.96% for next year. EPS is expected to grow by 19.74% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 8.30%.

Float and Shares Shorts:

At present, 220.10 million DLTR shares are outstanding with a float of 219.43 million shares on hand for trading. On Aug 30, 2023, short shares totaled 6.44 million, which was 2.93% higher than short shares on Jul 30, 2023. In addition to Mr. Richard W. Dreiling as the firm’s Exec. Chairman & CEO, Mr. Jeffrey A. Davis BS, EMBA serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 103.22% of DLTR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 61.64% of DLTR, in contrast to 38.58% held by mutual funds. Shares owned by individuals account for 10.48%. As the largest shareholder in DLTR with 10.46% of the stake, The Vanguard Group, Inc. holds 23,044,405 shares worth 23,044,405. A second-largest stockholder of DLTR, Capital Research & Management Co, holds 18,981,792 shares, controlling over 8.61% of the firm’s shares. Mantle Ridge LP is the third largest shareholder in DLTR, holding 11,365,531 shares or 5.16% stake. With a 4.43% stake in DLTR, the American Funds Fundamental Invest is the largest stakeholder. A total of 9,760,504 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.97% of DLTR stock, is the second-largest Mutual Fund holder. It holds 6,547,587 shares valued at 1.01 billion. American Funds Growth Fund of Ame holds 2.31% of the stake in DLTR, owning 5,086,142 shares worth 784.94 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DLTR since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With DLTR analysts setting a high price target of $195.00 and a low target of $112.00, the average target price over the next 12 months is $153.39. Based on these targets, DLTR could surge 72.05% to reach the target high and fall by -1.18% to reach the target low. Reaching the average price target will result in a growth of 35.34% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded DLTR stock several times over the past three months with 3 Buys and 1 Sells. In these transactions, 6,875 shares were bought while 1,484 shares were sold. The number of buy transactions has increased to 19 while that of sell transactions has risen to 5 over the past year. The total number of shares bought during that period was 95,677 while 18,492 shares were sold.

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