Dollar Tree Shares Drop 1.34% on 350th-Ranked $260M Volume as It Divests Family Dollar and Approves $2.5B Buyback Plan

Dollar Tree (DLTR) fell 1.34% on August 25, 2025, with a trading volume of $260 million, ranking 350th among the day’s stocks. The decline came amid strategic shifts including the divestiture of its Family Dollar brand, which the company has cited as a step to streamline operations and focus on core growth initiatives. Management highlighted improved profitability driven by debt reduction and operational adjustments, while a $2.5 billion share repurchase program was approved to enhance shareholder returns.

Analysts noted that while the Family Dollar sale removes a potential drag on margins, near-term risks remain around cost reallocation and execution challenges during the transition. The company’s 2028 revenue and earnings forecasts—projecting $21.7 billion in sales and $1.4 billion in profits—depend on sustaining 6.3% annual growth and margin expansion. Divergent fair value estimates from investors, ranging from $61.36 to $109.13 per share, reflect uncertainty around the pace of profitability improvement post-divestiture.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day yielded a moderate return from December 2021 to August 2025. Total profit reached $2,940, with a maximum drawdown of -$1,960. The Sharpe ratio of 1.53 indicates strong risk-adjusted returns, though August 2025 was the worst-performing month with a $790 loss, compared to a peak gain of $840 in December 2021.