Dollar Tree Inc (NASDAQ: DLTR)’s stock price has increased by 0.49 compared to its previous closing price of 132.50. However, the company has seen a 4.67% increase in its stock price over the last five trading sessions. Seeking Alpha reported 2024-03-28 that I am giving a Buy rating on Dollar Tree Stores (DLTR) with a price target of $185. Lower freight costs and the closure of unprofitable Family Dollar stores will improve margins in FY24. Management has a good track record of meeting EPS guidance, giving me confidence in their ability to achieve the FY26 target of $10 EPS.
Is It Worth Investing in Dollar Tree Inc (NASDAQ: DLTR) Right Now?
Company’s 36-month beta value is 0.90.Analysts have differing opinions on the stock, with 12 analysts rating it as a “buy,” 4 as “overweight,” 9 as “hold,” and 2 as “sell.”
The public float for DLTR is 217.37M, and currently, short sellers hold a 2.63% ratio of that floaft. The average trading volume of DLTR on April 01, 2024 was 2.74M shares.
DLTR’s Market Performance
DLTR’s stock has seen a 4.67% increase for the week, with a -8.89% drop in the past month and a -6.13% fall in the past quarter. The volatility ratio for the week is 1.98%, and the volatility levels for the past 30 days are at 2.18% for Dollar Tree Inc The simple moving average for the past 20 days is -2.81% for DLTR’s stock, with a 1.89% simple moving average for the past 200 days.
Analysts’ Opinion of DLTR
Many brokerage firms have already submitted their reports for DLTR stocks, with Gordon Haskett repeating the rating for DLTR by listing it as a “Buy.” The predicted price for DLTR in the upcoming period, according to Gordon Haskett is $160 based on the research report published on February 07, 2024 of the current year 2024.
JP Morgan, on the other hand, stated in their research note that they expect to see DLTR reach a price target of $157, previously predicting the price at $122. The rating they have provided for DLTR stocks is “Overweight” according to the report published on January 29th, 2024.
Goldman gave a rating of “Buy” to DLTR, setting the target price at $137 in the report published on October 17th of the previous year.
DLTR Trading at -3.41% from the 50-Day Moving Average
After a stumble in the market that brought DLTR to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -17.35% of loss for the given period.
Volatility was left at 2.18%, however, over the last 30 days, the volatility rate increased by 1.98%, as shares sank -9.22% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -1.66% lower at present.
During the last 5 trading sessions, DLTR rose by +4.67%, which changed the moving average for the period of 200-days by -0.80% in comparison to the 20-day moving average, which settled at $136.33. In addition, Dollar Tree Inc saw -6.27% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at DLTR starting from HEINRICH DANIEL J, who purchase 1,000 shares at the price of $127.85 back on Mar 18 ’24. After this action, HEINRICH DANIEL J now owns 6,225 shares of Dollar Tree Inc, valued at $127,850 using the latest closing price.
Mantle Ridge LP, the Director by deputization of Dollar Tree Inc, purchase 738,862 shares at $134.37 during a trade that took place back on Dec 20 ’23, which means that Mantle Ridge LP is holding 12,104,493 shares at $99,281,877 based on the most recent closing price.
Stock Fundamentals for DLTR
Current profitability levels for the company are sitting at:
- 0.01 for the present operating margin
- 0.3 for the gross margin
The net margin for Dollar Tree Inc stands at -0.03. The total capital return value is set at 0.01. Equity return is now at value -12.43, with -4.43 for asset returns.
Based on Dollar Tree Inc (DLTR), the company’s capital structure generated 0.4 points at debt to capital in total, while cash flow to debt ratio is standing at 0.54. The debt to equity ratio resting at 0.68. The interest coverage ratio of the stock is 1.75.
Currently, EBITDA for the company is 1.54 billion with net debt to EBITDA at 11.95. When we switch over and look at the enterprise to sales, we see a ratio of 1.27. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.31.
Conclusion
In a nutshell, Dollar Tree Inc (DLTR) has experienced a bad performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
