Dollar Tree (NASDAQ:DLTR) stock is taking off on Monday thanks to news that an activist investor is pushing for change at the discount retail company.
Mantle Ridge is the activist investor behind today’s news. According to recent reports, the firm has acquired a $1.8 billion stake in the company. It plans to use its stake to influence Dollar Tree to make changes that will increase the value of DLTR stock.
The latest reports claim that Mantle Ridge wants Dollar Tree to make changes to its pricing structure at Family Dollar. DLTR acquired Family Dollar back in 2015 and investors have been hoping for more changes at the company for some time now, reports The Wall Street Journal.
The activist investor news has resulted in a couple of upgrades from analysts covering DLTR stock. Deutsche Bank analyst Krisztina Katai starts this off with an upgrade from hold to buy. They also upped the price target for DLTR shares from $96 to $148.
UBS analyst Michael Lasser also sent out a new update on DLTR stock today. The analyst maintains the firm’s current buy rating for the stock and increases its price target to $130 per share. The previous price target was $120 per share.
Both of these analysts are bullish compared to their fellow associates. The current consensus rating for DLTR stock is hold. That comes from eight buy ratings, six hold ratings, and one sell rating. The consensus price target for the shares is $115.71.
With all the extra eyes on DLTR stock, shares are seeing heavy trading today. That has more than 12 million units changing hands. For the record, the company’s daily average trading volume is about 4.2 million shares.
DLTR stock was up 13.6% as of Monday afternoon and is up 20.1% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
