Dollar Tree (NASDAQ:DLTR) to Buyback $2.50 billion in Outstanding Stock

Dollar Tree (NASDAQ:DLTR) declared that its board has approved a stock buyback program on Thursday, July 2nd, RTT News reports. The company plans to repurchase $2.50 billion in shares. This repurchase authorization allows the company to reacquire up to 10.7% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s leadership believes its stock is undervalued.

Dollar Tree Stock Up 2.4%

Shares of DLTR traded up $2.90 during midday trading on Thursday, reaching $124.05. The stock had a trading volume of 3,238,521 shares, compared to its average volume of 3,466,362. The company has a market cap of $23.84 billion, a price-to-earnings ratio of 19.38, a PEG ratio of 1.39 and a beta of 0.65. The company’s fifty day simple moving average is $104.90 and its two-hundred day simple moving average is $114.67. Dollar Tree has a 1-year low of $84.71 and a 1-year high of $142.40. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.16 and a quick ratio of 0.39.

Dollar Tree (NASDAQ:DLTR) last issued its earnings results on Thursday, May 28th. The company reported $1.74 EPS for the quarter, topping analysts’ consensus estimates of $1.53 by $0.21. The firm had revenue of $4.98 billion during the quarter, compared to the consensus estimate of $4.96 billion. Dollar Tree had a net margin of 6.51% and a return on equity of 35.19%. The company’s revenue was up 7.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.26 earnings per share. Dollar Tree has set its Q2 2026 guidance at 1.000-1.150 EPS. Equities research analysts expect that Dollar Tree will post 6.98 earnings per share for the current year.

Wall Street Analysts Forecast Growth

DLTR has been the topic of several analyst reports. Morgan Stanley increased their price objective on Dollar Tree from $126.00 to $130.00 and gave the company an “equal weight” rating in a research note on Friday, May 29th. Truist Financial lowered their target price on Dollar Tree from $142.00 to $107.00 and set a “buy” rating for the company in a research note on Wednesday, May 27th. Freedom Capital downgraded Dollar Tree from a “strong-buy” rating to a “hold” rating in a report on Thursday, May 28th. Wall Street Zen raised Dollar Tree from a “hold” rating to a “buy” rating in a research report on Saturday, June 6th. Finally, BNP Paribas Exane lifted their price objective on Dollar Tree from $88.00 to $98.00 and gave the company an “underperform” rating in a research note on Friday, May 29th. Eight analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and five have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Dollar Tree currently has an average rating of “Hold” and an average price target of $119.48.

Dollar Tree Company Profile

Dollar Tree, Inc is a North American discount retailer that operates a portfolio of value-oriented store banners, primarily Dollar Tree and Family Dollar. The company’s stores offer a broad assortment of everyday items at low price points, including household essentials, food and snacks, health and beauty products, cleaning supplies, seasonal and party goods, home décor, and basic apparel. Dollar Tree’s merchandising strategy emphasizes high-turnover branded and private-label merchandise tailored to budget-conscious consumers, with Family Dollar complementing the chain by offering a wider range of price points and assortment depth in smaller-format neighborhood locations.

Founded in 1986 and headquartered in Chesapeake, Virginia, Dollar Tree has grown through both organic store openings and acquisitions.