Allstate Corp has made a notable move by acquiring a new position in shares of Dollar Tree, Inc. (NASDAQ:DLTR) during the third quarter of 2023. According to the company’s recent Form 13F filing with the Securities and Exchange Commission, Allstate purchased 7,530 shares valued at approximately $711,000. This investment reflects a broader trend, as other hedge funds have also shown interest in the discount retailer during the same period.
Several financial firms have adjusted their stakes in Dollar Tree. CFC Planning Co LLC entered the market with a new investment of about $525,000, while Sequoia Financial Advisors LLC increased its holdings by 35.4%, now owning 7,851 shares valued at $741,000. QRG Capital Management Inc. and Ritholtz Wealth Management have also boosted their investments by 54.1% and 27.2%, respectively. Together, institutional investors and hedge funds own a substantial 97.40% of Dollar Tree’s stock.
Insider Activity and Stock Performance
In related developments, insider Brent A. Beebe sold 2,200 shares of Dollar Tree on December 8, 2023, at an average price of $124.65, amounting to a total of $274,230. Following this transaction, Beebe owns 13,740 shares valued at approximately $1,712,691, reflecting a decrease of 13.80% in his ownership.
As of last Friday, Dollar Tree’s stock opened at $126.83. The company maintains a debt-to-equity ratio of 0.70, with a current ratio of 0.96 and a quick ratio of 0.22. The stock’s 50-day simple moving average stands at $122.09, while the 200-day average is at $110.27. Dollar Tree has a market capitalization of $25.22 billion and a price-to-earnings ratio of -9.43. Over the past year, the stock has fluctuated between a low of $61.80 and a high of $142.40.
Dollar Tree recently reported its quarterly earnings on December 3, 2023. The company posted earnings per share of $1.21, exceeding the consensus estimate of $1.09 by $0.12. Revenue for the quarter reached $4.75 billion, surpassing estimates of $4.70 billion, and marking a year-over-year increase of 9.4%.
Analyst Ratings and Market Outlook
Several analysts have updated their ratings on Dollar Tree shares. Citigroup raised its price target from $124.00 to $132.00, maintaining a “buy” rating. Deutsche Bank reiterated a “hold” rating and set a target price of $126.00, while Piper Sandler affirmed a “neutral” rating with a revised target of $114.00, up from $108.00. Bank of America lowered its price target from $75.00 to $85.00, rating the stock as “underperform.” Conversely, Barclays increased its target from $136.00 to $149.00, classifying the stock as “overweight.”
A total of eight research analysts currently rate Dollar Tree with a “buy” status, nine have issued “hold” ratings, and seven have recommended a “sell.” According to data from MarketBeat.com, the company has a consensus rating of “hold” with a price target of $120.10.
Founded in 1986 and headquartered in Chesapeake, Virginia, Dollar Tree, Inc. operates a variety of discount retail banners, primarily Dollar Tree and Family Dollar. The company offers an assortment of essential items at low prices, focusing on budget-conscious consumers. Dollar Tree aims to provide high-turnover branded and private-label products, with Family Dollar complementing its offerings through a wider assortment in smaller neighborhood stores.
