Dollar Tree, Inc. (DLTR) Stock Could Continue Downtrend After Missing Earnings Estimates


Dollar Tree, Inc. (NASDAQ:DLTR) is a company we are all familiar with. Whether it is that affordable toy you need to pick up for your kid, or a box of cereal for tomorrow’s breakfast. However, the stock has been in the midst of a downtrend as of late, and things may not get better today after the company reported just 49 cents per share for this past quarter. This missed estimates by 4 cents. The good news, however, is that the company beat forcasted revenues, while it had comparable store sales which increased by 2.1%, the same amount that analysts had expected.

The stock closed at $69.55 during the last session. It is down 13.68% since April 22, 2015 and is downtrending. It has underperformed by 12.66% the S&P500.

Out of 13 analysts covering Dollar Tree Inc. (NASDAQ:DLTR), 8 rate it “Buy”, 1 “Sell”, while 4 “Hold”. This means 62% are positive. $91 is the highest target while $60 is the lowest. The $78.18 average target is 12.41% above today’s ($69.55) stock price. Dollar Tree Inc. was the topic in 19 analyst reports since August 6, 2015 according to StockzIntelligence Inc. JP Morgan reinitiated the stock on November 6 with “Overweight” rating. Citigroup maintained the shares of DLTR in a report on September 10 with “Neutral” rating. Finally, TheStreet downgraded the stock to “Hold” rating in a September 3 report.

The institutional sentiment decreased to 0.72 in Q2 2015. Its down 0.27, from 0.99 in 2015Q1. The ratio is negative, as 63 funds sold all Dollar Tree, Inc. shares owned while 234 reduced positions. 42 funds bought stakes while 173 increased positions. They now own 199.13 million shares or 5.17% less from 209.99 million shares in 2015Q1.

Miura Global Management Llc holds 8.02% of its portfolio in Dollar Tree, Inc. for 1.60 million shares. Conatus Capital Management Lp owns 1.57 million shares or 7.54% of their US portfolio. Moreover, Darsana Capital Partners Lp has 7.22% invested in the company for 1.80 million shares. The Virginia-based Akre Capital Management Llc has invested 6.76% in the stock. Emerging Sovereign Group Llc, a New York-based fund reported 2.29 million shares.

Since March 5, 2015, the stock had 1 buying transaction, and 1 insider sale for $56,664 net activity. Witynski Michael A. sold 5,846 shares worth $387,674. Hall Conrad M. bought 5,000 shares worth $331,010. Sasser Bob sold 4,319 shares worth $354,158. Rudman Robert H sold 6,344 shares worth $513,864. The insider Philbin Gary M sold 11,122 shares worth $929,010.

Dollar Tree, Inc. is an operator of discount variety stores offering merchandise at the fixed price of $ 1.00. The company has a market cap of $16.06 billion. The Firm offers a selection of everyday basic products and also supplements these basic, everyday items with seasonal, closeout and promotional merchandise. It has 45.72 P/E ratio. As of July 06, 2015, the Company operated more than 13,600 stores across 48 states and five Canadian provinces.