Drilling Down Into Dollar Tree, Inc. (DLTR)

Dollar Tree, Inc. (DLTR) is an interesting player in the Services space, with a focus on Discount, Variety Stores. The stock has been active on the tape, currently trading at $107.31, down from yesterday’s close by -0.70%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Dollar Tree, Inc. (DLTR) currently trades with a market capitalization of $25.62 Billion. That value represents a market adjusting for revenues that have been growing by 6.30 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $1.05 Billion over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $1.86 on a per share basis this quarter. Perhaps, that suggests something about why 1.97% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how DLTR has been acting. Looking at the stock’s movement on the chart, Dollar Tree, Inc. recorded a 52-week high of $110.86. It is now trading 3.55% off that level. The stock is trading $99.78 its 50-day moving average by -7.53%. The stock carved out a 52-week low down at $65.63.

In recent action, Dollar Tree, Inc. (DLTR) has made a move of +4.43% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.03, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.24% with $230.75 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of DLTR.

Previous articleThe Case for and Against Incyte Corporation (INCY)
Next articleJust the Facts on Apollo Investment Corporation (AINV)