Dollar Tree (NASDAQ: DLTR) stock is taking off on Monday thanks to news that an activist investor is pushing for change at the discount retail company. Mantle Ridge is the activist investor behind today’s news. According to recent reports, the firm has acquired a $1.8 billion stake in the company.
Full Answer
Why do people go to Dollar Tree?
While customers primarily head to Dollar General or Family Dollar when they run out of items like milk or paper towels, Dollar Tree attracts shoppers who want to have a little fun and hunt for a quirky gift or items that might look good in their living room — for a buck. Selling everything for $1 was also easy on store operations.
Is Dollar Tree's stock turning the corner?
However, investors have clearly warmed up to the company, and the stock has gained 52% over the past year, besting the S&P 500 's 48% increase. The key question is whether the company has truly turned the corner, leaving a lot of upside potential for long-term stock investors, or if Dollar Tree benefited from extenuating circumstances.
How much of Dollar Tree's stock is owned by insiders?
In the past three months, Dollar Tree insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $2,040,858.00 in company stock. Only 1.20% of the stock of Dollar Tree is held by insiders. 90.24% of the stock of Dollar Tree is held by institutions.
Should you buy or sell Dollar Tree stock?
17 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Dollar Tree in the last twelve months. There are currently 1 sell rating, 7 hold ratings and 9 buy ratings for the stock. The consensus among Wall Street analysts is that investors should "hold" Dollar Tree stock.
Why is Dollar Tree stock so high?
Dollar Tree reports faster same-store sales growth than analysts expected. Dollar Tree's stock soared Thursday after first-quarter earnings beat Wall Street estimates and the company raised its full-year sales guidance. Shares of the discount store climbed 18% Thursday to $157.65.
Is Dollar Tree a good stock to buy now?
DLTR sits at a Zacks Rank #3 (Hold), holds a Growth Style Score of B, and has a VGM Score of B. Earnings and sales are forecasted to increase 35.2% and 5.6% year-over-year, respectively. Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023.
What day does Dollar Tree usually restock?
The shipments mostly take place on Fridays, but the day isn't the same for every store and mostly depends on system calculations and product demand. For seasonal items, the shipment takes place a few weeks before the forecasted demand of customers.
Will Dollar Tree stock go up?
The 21 analysts offering 12-month price forecasts for Dollar Tree Inc have a median target of 185.00, with a high estimate of 206.00 and a low estimate of 110.00. The median estimate represents a +14.58% increase from the last price of 161.46.
Is Dollar Tree stock a buy or sell?
Dollar Tree has received a consensus rating of Buy. The company's average rating score is 2.59, and is based on 11 buy ratings, 5 hold ratings, and 1 sell rating.
Why should I invest in Dollar Tree?
“Dollar Tree is more of a high-risk, high-reward turnaround play, where the stock could have a lot more upside if they pull off the execution. But if they screw up, you can kiss your gains goodbye,” he added. Cramer said that the two companies' contrasting pricing strategies has helped Dollar General come out on top.
Where does the Dollar Tree get their merchandise?
Once seen as dumping grounds for liquidated and off-brand merchandise, today's dollar stores often buy their inventory from major manufacturers such as Procter & Gamble, Hanes, Unilever, Coca-Cola, Energizer, Crayola and General Mills.
What is the new name for Dollar Tree?
Dollar Tree should change its name to Dollars Tree. The company announced today that they're permanently raising the prices of most of their items from $1 to $1.25 and offering more $3 and $5 products.
What items are sold at Dollar Tree?
Some of the product departments you´ll find at Dollar Tree include housewares, glassware, dinnerware, cleaning supplies, candy, snacks, food, health and beauty, toys, gifts, gift bags and wrap, party supplies, stationery, craft supplies, teaching supplies, books, automotive products, pet supplies, seasonal goods and ...
Which dollar store stock is best?
5 Best Stocks to Buy in JuneStockSymbol2021 Sales ($)Dollar GeneralDG34.22 billionDollar TreeDLTR26.32 billionBig LotsBIG6.15 billionFive BelowFIVE2.84 billionApr 21, 2022
Are Dollar Stores good investments?
It may not seem like a great place to invest, but dollar stores are actually quite profitable....Leading dollar store stocks.StockMarket CapDescriptionDollar General (NYSE:DG)$49 billionThe largest dollar store chain by sales and number of locations.2 more rows
Is five stock a buy?
The financial health and growth prospects of FIVE, demonstrate its potential to outperform the market. It currently has a Growth Score of A. Recent price changes and earnings estimate revisions indicate this would not be a good stock for momentum investors with a Momentum Score of D.
What happened
Shares of Dollar Tree ( DLTR -2.13% ) climbed on Wednesday after the retailer said it would boost its stock buyback program and add more higher-priced items to its stores.
So what
Dollar Tree's Board of Directors authorized an additional $1.05 billion in share repurchases. That places the total buyback amount at a whopping $2.5 billion, or about 10% of Dollar Tree's current market value.
NASDAQ: DLTR
"We are committed to a disciplined capital allocation strategy that balances returning capital to our shareholders and investing in our business for growth," CEO Michael Witynski said in a press release.
Now what
Like many retailers, Dollar Tree's profits are being dented by higher raw material and labor costs. These inflationary pressures are making it difficult for the company to stick to its traditional $1-per-item prices.
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An activist investor could help to unlock value for shareholders
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What happened
Shares of Dollar Tree ( NASDAQ:DLTR) surged 14% on Monday after a respected investment firm took a large stake in the company.
So what
Activist investor Mantle Ridge wants to drive changes at Dollar Tree that it believes will make the retailer's stock more valuable, according to The Wall Street Journal. To jump-start that process, Mantle Ridge acquired a $1.8 billion stake in Dollar Tree.
Now what
Selling some products at higher price points will make it easier for Dollar Tree to offer a broader selection of goods. This, in turn, could increase sales and help the retailer better manage its rising labor, shipping, and raw material costs.
How many chains does Dollar Tree have?
Turning it around. Dollar Tree has two chains: its namesake stores and Family Dollar. The Dollar Tree brand sells most items for $1 or less. Meanwhile, Family Dollar, which the company acquired in 2015, has price points ranging from $1 to $10.
How much did the renovated stores increase sales?
On the bright side, management notes that renovated stores have produced 10% higher sales. Still, it also stated that COVID-19 helped boost sales at the chain, making it difficult to judge the success of its plan right now.
Does Dollar Tree compete with Walmart?
Aside from other exclusive discount stores, like Dollar General, Dollar Tree competes with a bevy of major retailers. This includes Walmart, which has perfected its low-price offerings, and other retailers that have a section devoted to $1 merchandise.
Does Family Dollar have Instacart?
Last year, the Family Dollar unit entered into an arrangement with delivery service Instacart that allows online shopping. A couple of months ago, management expanded this to over 6,000 stores out of the nearly 7,900 total. An increased omnichannel presence is important to remain competitive with the likes of Walmart, but these large chains have broad offerings, making it a tough battle.
Breaking the buck
Dollar Tree had taken steps in recent years to raise prices on some items.
An opportunity for Dollar General
Price remains the most significant factor for many Dollar Tree shoppers and moving away from $1 may drive them elsewhere.
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When will Dollar Tree stock be bought back?
Dollar Tree declared that its Board of Directors has approved a stock buyback plan on Wednesday, September 29th 2021, which permits the company to buyback $2,500,000,000.00 in outstanding shares, according to EventVestor. This buyback authorization permits the company to reacquire up to 11.3% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.
When will Dollar Tree release its earnings?
Dollar Tree is scheduled to release its next quarterly earnings announcement on Thursday, August 26th 2021. View our earnings forecast for Dollar Tree.
What is the dollar tree symbol?
Dollar Tree trades on the NASDAQ under the ticker symbol " DLTR."
What is the peg ratio of Dollar Tree?
Dollar Tree has a PEG Ratio of 3.23. PEG Ratios above 1 indicate that a company could be overvalued.
What is Dollar Tree's EPS for 2021?
Dollar Tree updated its FY 2021 earnings guidance on Tuesday, June, 22nd. The company provided EPS guidance of $5.800-6.050 for the period, compared to the Thomson Reuters consensus EPS estimate of $6.240. The company issued revenue guidance of -.
When will Dollar Tree repurchase its shares?
Dollar Tree announced that its Board of Directors has authorized a share buyback program on Wednesday, March 3rd 2021, which permits the company to repurchase $2,000,000,000.00 in outstanding shares, according to EventVestor. This repurchase authorization permits the company to repurchase up to 7.9% of its stock through open market purchases.
Does Dollar Tree have a family dollar?
Dollar Tree, Inc. owns and operates discount variety stores offering merchandise at the fixed prices. It operates through Dollar Tree and Family Dollar segments. The Dollar Tree segment includes operations under Dollar Tree and Dollar Tree Canada brands, with its distribution centers in the United States and in Canada. The Family Dollar segment comprises a chain of general merchandise retail discount stores providing consumers with a selection of competitively-priced merchandise in convenient neighborhood stores. The company was founded by J. Douglas Perry and Macon F. Brock, Jr. in 1986 and is headquartered in Chesapeake, VA.
