Dollar Tree, Inc. (DLTR): Are Hedge Funds Betting Their Dollars on Thsi Stock?

Dollar Tree, Inc. (NASDAQ:DLTR) stock has dropped more than 5.4 percent following its announcement of disappointing third quarter results. What might have hurt investor confidence more, though? A weak outlook and missing presence on Kantar Retail’s list of least-expensive places to shop, particularly when its competitors Dollar General Corp. (NYSE:DG) and Family Dollar Stores, Inc. (NYSE:FDO) made among the top-three least-expensive places. With this knowledge, let us take a quick glance on how smart money managers are trading their investments in Dollar Tree, Inc. (NASDAQ:DLTR)’s stock.

Dollar Tree, Inc. (NASDAQ:DLTR)

What does the smart money think about Dollar Tree, Inc. (NASDAQ:DLTR)?

At the end of the third quarter, 47 of the hedge funds tracked by our friends at Insider Monkey held long positions in this stock, a 7-percent increase from the previous quarter.

According to Insider Monkey’s comprehensive database, Stephen Mandel of Lone Pine Capital had the biggest investment in Dollar Tree, Inc. (NASDAQ:DLTR), worth $437.2 million, comprising 2 percent of its total portfolio investment. Following on the list is Blue Ridge Capital, managed by John Griffin, which held a $240.1-million investment, comprising 2.9 percent of its total portfolio. Other hedgies with similar optimism comprise Eric Mindich of Eton Park Capital, Charles Akre of Akre Capital Management and Jonathon Jacobson of Highfields Capital Management.

As industry-wide interest jumped, key hedge funds have been driving this bullishness. Standard Pacific Capital, managed by Douglas Dillard Jr. and Raj D. Venkatesan, invested the most in Dollar Tree, Inc. (NASDAQ:DLTR) with an investment worth $40.6 million at the end of the quarter. Alexander Mitchell of Scopus Asset Management also initiated a $36.8-million position during the quarter. The other fund managers with new positions in the stock are Louis Bacon of Moore Global Investments, Leon Shaulov of Maplelane Capital, and John Burbank of Passport Capital.

How have insiders been trading Dollar Tree, Inc. (NASDAQ:DLTR)?

Over the past six months, Dollar Tree, Inc. (NASDAQ:DLTR) has experienced one unique insider buy and six insider sales (see the details of insider trades here).

Let’s check out hedge-fund and insider activity in other stocks similar to Dollar Tree, Inc. (NASDAQ:DLTR). These stocks are PriceSmart, Inc. (NASDAQ:PSMT), Costco Wholesale Corporation (NASDAQ:COST), Target Corporation (NYSE:TGT), Family Dollar Stores, Inc. (NYSE:FDO), and Dollar General Corp. (NYSE:DG). All of these stocks are the members of the discount, variety stores industry and their market caps are similar to DLTR’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
PriceSmart, Inc. (NASDAQ:PSMT) 6 0 5
Costco Wholesale Corporation (NASDAQ:COST) 38 0 11
Target Corporation (NYSE:TGT) 36 0 7
Family Dollar Stores, Inc. (NYSE:FDO) 35 0 4
Dollar General Corp. (NYSE:DG) 47 1 6

Archrival Dollar General Corp. (NYSE:DG) beats Dollar Tree, Inc. (NASDAQ:DLTR) with regards to number of hedge funds holding position in these stocks are concerned. Insider-selling activities in DG are only half of what is reported in DLTR.


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