Trading of Dollar Tree shares at full valuation

Goldman Sachs downgraded Dollar Tree stock to “neutral”

Actions of Dollar Tree Inc (NASDAQ: DLTR) move with the broader market today, last seen down 2.9% to trade at $ 137.57. It comes after Goldman Sachs lowered stocks to “neutral” from “buy,” the analyst saying the stocks are trading at their full valuation and the history of the company’s comeback is already embedded in the price. Goldman Sachs has, however, increased its price target. at $ 150 from $ 116.

This negative analyst attention comes weeks after bullish ratings poured in for DLTR following significant involvement by activist investor The mantle crest. After hitting annual lows in mid-September, Dollar Tree stock was guided higher by the 10-day moving average and broke a bullish spread after earnings to hit an all-time high of $ 149.37 on November 24. Longer term, DLTR is up 30.8% since the start of the year.

Still, options traders love puts. Schaeffer’s Dollar Tree stock’s open put / call (EVEN) interest ratio of 1.04 sits in the 98th percentile of its annual range, indicating that short-term traders have rarely been more biased in the past. over the past 12 months.

Echoing this, Dollar Tree stock shows a 10-day sell / call volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that ranks in the 79th percentile of its annual range. . This implies that the rate of put buy versus call buy was faster than usual.

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