BUZZ-Dollar Tree down after block sale by activist investor, share buyback
Dollar Tree, Inc. DLTR | 0.00 | |
Jpmorgan Chase JPM | 0.00 | |
Goldman Sachs Group, Inc. GS | 0.00 |
** Discount retailer Dollar Tree's DLTR.O shares down 2.8% to $116 in premarket trading on Thurs after unregistered block trade, buyback news
** DLTR says funds affiliated with Mantle Ridge and a selling stockholder counterparty to derivative agreements with Mantle Ridge to sell ~12.82 mln shares to JP Morgan and Goldman Sachs
** Upon completion of block trade, DLTR to repurchase $500 mln worth of shares from Goldman as part of co's existing $2.5 bln stock buyback authorization
** Mantle Ridge is second largest DLTR holder, trailing Fidelity Management, with ~13.64 mln shares, or roughly 7% of the co, per LSEG data
** In late 2021, activist hedge fund Mantle Ridge disclosed a 5.7% stake in DLTR and pushed for changes including major overhaul of its board. In March 2022, the two parties reached a settlement and DLTR added seven new directors to its board
** Last month, DLTR raised its annual profit forecast, and moved away from its historic $1 model to a "multi‑price" strategy, with items priced at $1.25, $3, $5 and higher
** At Weds close, DLTR shares down 3% YTD following 64% rally in 2025
** Avg rating among 29 analysts is "hold"; median PT $124 - LSEG