In the latest fortnight, short interest in Dollar Tree, Inc. (NASDAQ:DLTR) stock jumped by 32.82%, indicating a significant rise in bearish sentiment. When it comes to determining how a name is viewed by investors, short interest is often a useful tool. The average analyst recommendations at 2.2 suggests buying these shares. Between December 14 and December 31, the total number of shorted shares amounted to 6.24 million shares. That was 1,541,292 more shares than the total of 4.7 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go down. Average daily volume for DLTR at the December 31st settlement jumped to 3,271,995, as compared to 3,015,474 at the December 14th report. That brought days to cover to 1.906533, a 22.4% increase from the 1.557591 days to cover recorded at the prior short interest data release.
Dollar Tree, Inc. (DLTR) will probably climb -1.33 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $116price as 12-month high target. This represents a whopping 20.32 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $98, which represents a return potential of 1.65 percent when compared to the closing price of the stock of $96.41 on Thursday, January 10. The lowest price target for the stock is $84 — slightly more than -12.87 percent from DLTR’s current share price.
The stock is currently hovering around the first support level of $94.64. Below this, the next support is placed in the zone of $92.86. Till the time, the DLTR stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 67.72 on daily chart, which may remain a cause for concern. If the price breaks below $92.86 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $97.56 mark may result into a pull-back move towards $98.7 level.
On 10th of January, Dollar Tree, Inc. (NASDAQ:DLTR) shares ended lower after a volatile session. The shares dropped -0.76 points or -0.78 percent at $96.41 with a light trade volume of 3.439 million shares. After opening the session at $94.01, the shares went as high as $96.93 and as low as $94.01, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $22.5 billion and now has 233.64 million shares outstanding. Dollar Tree, Inc. (DLTR) stock has gained 15.02 percent of market value in 21 trading days.
DLTR stock has a trailing 3-year beta of 0.42, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $5.01 a share in the trailing twelve months. The stock’s value has surged 6.74 percent year to date (YTD) against a decline of -12.11 percent in 12 month’s time. The company’s shares still trade -17.35 percent away from its 1-year high of $116.65 and 22.38 percent up from 52-week low of $78.78. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
Shares of Dollar Tree, Inc. (DLTR) are trading at a P/E ratio of 16.92 times earnings reported for the past 12 months. The industry DLTR operates in has an average P/E of 27. Its P/E ratio went as low as 18.55X and as high as 64.36 over the 5-year span. Further, it is sporting a 0.98 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.29. 31.1 percent is the gross profit margin for Dollar Tree, Inc. and operating margin sits at 8.6 percent. Along with this, the net profit margin is 7.6 percent.
Let’s take a look at some insider activity at Dollar Tree, Inc. (NASDAQ:DLTR) and see the pattern. The earliest insider trade took place on 09/27/2018. Lewis Lemuel E gathered a total of 1.21 thousand shares of company at average share price of $82.75. The total for the purchase was set at $100.13 thousand. After this transaction, the Director account balance stood at 52.67 thousand shares. The stock grew 16.51 percent since that insider purchase. On 06/18/2018, Whiddon Thomas E, Director, purchased 2.25 thousand shares at a price per share of $88.78. This added 199.76 thousand shares to the insider’s fortune and the stock saw a 8.59 percent rally in value since the news became public. This transaction left 26.12 thousand shares in the Director account.
On 06/05/2018, Director Naylor Jeffrey G performed a purchase transaction worth $246.24 thousand. This purchase at $82.08 each has added 3 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 17.46 percent increase since the transaction was reported. The insider now is left with 0.24 thousand shares remaining in the account. Lewis Lemuel E, who performs the Director job, bought 2.5 thousand shares for $201.1 thousand. The acquisition occurred on 06/04/2018 was priced at $80.44 per share. The share price soared 19.85 percent since the reporting date. Lewis Lemuel E now left with a stake of 18.9 thousand DLTR stock worth $1.82 million after the insider buying.