Mandel’s recent move on Dollar Tree positions him at 5.2 percent of shares outstanding, compared to third quarter’s 1.69 percent. The recent purchase just about triples his third quarter holding. He reported about 3.9 million shares in September, whereas he now has 11.8 million shares of the company’s stock.
Dollar Tree has a market cap of $9.17 billion. It prospers in the idea of selling extremely low-priced items in all of its 4,630 stores in 48 states and 5 Canadian provinces. Its stock is up almost 2 percent this afternoon, trading at $39.26.
Dollar Tree reached its three-year peak right before the start of the third quarter, trading around $56, and has since been in a downward trend after its peak.
Year to date, Dollar Tree’s market value has depreciated by 6.59 percent, especially so in October when its price dropped from $46 to $39.
DLTR data by GuruFocus.com
About a month after the price drop, Dollar Tree director Conrad M. Hall purchased shares of the stock after a six-streak selling spree from several other Dollar Tree insiders. Purchases appear rare in the company’s insider activity.
Dollar Tree’s main competitor, Dollar General, is trading a few dollars higher than Dollar Tree, around $43 today, and is down 0.32 percent. It, however, has gained in value year to date, by 7.06 percent.
Conveniently, Mandel owns both retail stocks. Upon presenting Dollar Tree as a new buy in the third quarter, he also added to his Dollar General stake by 124 percent.
Dollar Tree is ranked positively in Business Predictability by GuruFocus, graded 5 stars whereas Dollar General lacks a rating at all.
Dollar Tree’s revenue growth has maintained positive numbers in the last decade, as with its EBITDA, book value and free cash flow, according to its 10-Year Financials. Dollar Tree has a 9 in Financial Strength and an 8 in Profitability and Growth on GuruFocus.
View the rest of Mandel’s latest trades at Steve Mandel’s Stock Picks. Also read more on related topics in our GuruFocus archives
About GuruFocus Real Time Picks
GuruFocus Real Time Picks alerts you of the stock purchases and sales that Gurus have made within the last two days. Follow your favorite Gurus closely with GuruFocus' Premium Membership! If you are not a Premium Member, we invite you for a 7-Day Free Trial.