William Douglas, a director at Dollar Tree (DLTR), recently bought 7,500 shares. The buy increased his stake by over 1,000%, and came to total cost of $520,000.
This marks the first insider buy since last September, when another company director bought 2,200 shares for just over $150,000. In the meantime, there have been two small insider sales, including a $31,000 sale from the company CEO for less than 1% of his holdings.
Overall, Dollar Tree insiders own 0.1% of shares.
The dollar store chain has had its share price cut in half over the past year, amid a slowdown in customer sales. That’s reflected by a 42% drop in revenues over the past year.
Shares have been largely rangebound since last summer. In its most recent quarter, Dollar Tree traded at about 14 times earnings and 0.8 times its price to sales.
Action to take: While consumers may shift their spending to lower-cost items in uncertain economic times, dollar stores in general have been struggling even before the latest shift in tariffs. Interested investors may want to hold off until there’s more certainty on tariffs, as that can have a massive impact on the price of goods.
For traders, with shares likely range-bound, the July $75 calls, last trading for about $6.30, could see mid-double-digit returns on a pop higher in shares over the coming months. Traders should look to take quick profits.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.