CEO Rick Dreiling will step down from his role
Shares of discount retailer Dollar Tree Inc (NASDAQ:DLTR) are 4% higher in premarket trading, looking to open just below $70 after it announced CEO Rick Dreiling will step down after two years in the position. Chief operating officer Michael Creedon Jr. was tapped to serve as interim CEO, and the company also reiterated its guidance for the third quarter and commitment to reviewing its Family Dollar segment’s strategic options.
Analysts are weighing in following the news. Telsey Advisory Group downgraded DLTR to “market perform” from “outperform” and lowered its price target to $75 from $95, while J.P. Morgan Securities hiked its target price to $82 from $70.
Meanwhile, options traders are more firmly planted in the bearish camp. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Dollar Tree stock’s 50-day put/call volume ratio stands in the 76th percentile of readings from the past 12 months.
Coming into today, the equity was down 53% since the start of 2024, with a 42.6% year-over-year deficit to boot. It’s still attempting to rebound from its Sept. 4, more than four-year low of $60.82, but long-term pressure from its 60-day moving average looks like it will continue to cap positive price action.