Who Owns Dollar Tree: The Complete Ownership Analysis

Introduction

Dollar Tree is one of the largest retail companies in the United States, with more than 15,000 stores across the country. Founded in 1986, the company has grown rapidly and become a household name in the retail industry. Knowing the ownership structure of Dollar Tree is important for investors and stakeholders as it can impact the company’s financial performance and decision-making. In this article, we will provide a complete ownership analysis of Dollar Tree, including an overview of its ownership structure, major shareholders, founders, key executives, institutional investors, insider trading, competitors, suppliers, financial performance, share price analysis, corporate governance, shareholder activism, social responsibility, legal and regulatory issues, and future outlook.

Dollar Tree’s Ownership Structure

Dollar Tree is a publicly-traded company, listed on the NASDAQ stock exchange under the ticker symbol DLTR. As of September 2021, the company had a market capitalization of around $26 billion. The ownership of Dollar Tree is divided into two classes of stock: common stock and preferred stock. Common stockholders are entitled to vote on company matters and receive dividends, while preferred stockholders have priority over common stockholders in receiving dividends and liquidation proceeds. As of the most recent filing with the Securities and Exchange Commission (SEC), Dollar Tree had 236.2 million shares of common stock outstanding.

Founders and Co-Founders of Dollar Tree

Dollar Tree was founded by Doug Perry and Macon Brock, who were joined by their friend Ray Compton in 1986. Perry and Brock had previously worked together at K&K Toys, a toy store chain that they co-founded in 1970. Compton was also an experienced retailer, having previously worked for the Woolworth’s chain of department stores. The three entrepreneurs saw an opportunity to create a chain of stores that sold products for only $1, and they opened their first store in Norfolk, Virginia in 1986. Today, Perry and Brock are no longer actively involved in the management of the company, but they still own significant stakes in the company.

Key Executives of Dollar Tree

Dollar Tree is led by a team of experienced executives, who are responsible for the day-to-day operations of the company. The current CEO of Dollar Tree is Michael Witynski, who has been with the company since 2010 and was appointed CEO in 2019. Witynski has over 30 years of experience in the retail industry and has held various leadership positions at several other retail companies. Other key executives at Dollar Tree include Kevin Wampler, the Chief Financial Officer, and Betty Click, the Chief Human Resources Officer.

Institutional Investors in Dollar Tree

Institutional investors are important stakeholders in publicly-traded companies like Dollar Tree, as they hold large stakes in the company and have the ability to influence its decision-making. Some of the largest institutional investors in Dollar Tree include Vanguard Group, BlackRock, State Street Corporation, and Fidelity Investments. These investors own significant stakes in the company and have a strong influence on its corporate governance policies and strategic decisions.

Insider Trading at Dollar Tree

Insider trading is the buying or selling of a company’s securities by individuals who have access to material nonpublic information about the company. Insider trading is illegal and can result in significant fines and penalties. Dollar Tree has been involved in several insider trading scandals over the years, involving both executives and directors of the company. In 2015, the SEC charged Dollar Tree’s former Chief Operating Officer with insider trading, alleging that he used confidential information to make trades in the company’s stock. In 2018, a Dollar Tree director was charged with insider trading, alleging that he used confidential information to

make trades in the company’s stock options. These incidents have raised concerns about the company’s corporate governance and insider trading policies.

Major Shareholders of Dollar Tree

The largest shareholders of Dollar Tree are typically institutional investors, but there are also some notable individual shareholders who own significant stakes in the company. One such individual is Carl Icahn, a billionaire investor and activist shareholder who is known for taking large stakes in companies and pushing for changes in their management or operations. Icahn owns around 2.7% of Dollar Tree’s common stock, making him one of the company’s largest individual shareholders. Other notable shareholders of Dollar Tree include The Vanguard Group, BlackRock, and State Street Corporation.

Competitors and Suppliers of Dollar Tree

Dollar Tree operates in a highly competitive retail industry, with several other discount retailers vying for market share. Some of Dollar Tree’s main competitors include Walmart, Target, and Dollar General. These companies offer similar products at competitive prices, and Dollar Tree must constantly adapt its business model to stay ahead of the competition. Dollar Tree’s suppliers are also important stakeholders in the company, as they provide the products that the company sells in its stores. Some of Dollar Tree’s largest suppliers include China-based manufacturers who produce low-cost goods for the company to sell in its stores.

Financial Performance of Dollar Tree

Dollar Tree’s financial performance has been strong in recent years, with steady revenue growth and increasing profitability. In 2020, the company reported total revenue of $25.2 billion, up from $23.6 billion in 2019. Net income for the year was $1.6 billion, up from $1.4 billion the previous year. The company has also been steadily increasing its dividend payments to shareholders, with a current annual dividend yield of around 1%. Dollar Tree’s financial performance is closely watched by investors and analysts, as it can impact the company’s stock price and future prospects.

Share Price Analysis of Dollar Tree

Dollar Tree’s stock price has been relatively stable in recent years, with some fluctuations due to market conditions and company-specific news. As of September 2021, the company’s stock price was trading around $111 per share, up from around $90 per share in early 2020. The stock has a price-to-earnings (P/E) ratio of around 22, which is slightly higher than the industry average. This indicates that investors are willing to pay a premium for Dollar Tree’s stock, likely due to the company’s strong financial performance and growth potential.

Corporate Governance at Dollar Tree

Corporate governance refers to the set of policies and procedures that govern how a company is run, including the roles and responsibilities of its executives and board of directors. Dollar Tree has a board of directors that is responsible for overseeing the company’s operations and ensuring that it operates in the best interests of its shareholders. The board is comprised of 10 members, including the CEO and several independent directors. The company has a code of conduct and ethics that all employees are required to follow, which outlines the company’s commitment to transparency and ethical business practices.

Shareholder Activism at Dollar Tree

Shareholder activism refers to the practice of shareholders using their voting power to push for changes in a company’s management or operations. Shareholder activism has become increasingly common in recent years, with investors becoming more vocal about their concerns and expectations for the companies in which they invest. Dollar Tree has been the target of shareholder activism in the past, with investors pushing for changes in the company’s executive compensation practices and board composition. The company has responded by making changes to its governance policies and increasing its engagement with shareholders.

Social Responsibility at Dollar Tree

Social responsibility refers to a company’s commitment to acting in the best interests of society as a whole

Dollar Tree has made several efforts to be a socially responsible company, including implementing sustainability initiatives and supporting charitable organizations. The company has set a goal to reduce its carbon emissions by 50% by 2025 and has implemented energy-efficient measures in its stores and distribution centers. Additionally, Dollar Tree has a charitable giving program that supports organizations such as St. Jude Children’s Research Hospital and the Boys & Girls Clubs of America.

Conclusion

In conclusion, Dollar Tree is a leading discount retailer that operates thousands of stores across the United States and Canada. The company has a diverse range of products and a loyal customer base, but it also faces intense competition from other discount retailers. Dollar Tree’s financial performance has been strong in recent years, and the company has made efforts to be a socially responsible organization. However, the company has also faced scrutiny over its corporate governance and insider trading policies. As Dollar Tree continues to grow and adapt to changes in the retail industry, it will be important for the company to maintain transparency and ethical business practices.

FAQs

Who founded Dollar Tree?

Dollar Tree was founded in 1986 by Macon Brock, Doug Perry, and Ray Compton.

Where is Dollar Tree headquartered?

Dollar Tree is headquartered in Chesapeake, Virginia.

Does Dollar Tree own Family Dollar?

Yes, Dollar Tree acquired Family Dollar in 2015.

Can I buy stock in Dollar Tree?

Yes, Dollar Tree’s stock is publicly traded on the NASDAQ stock exchange under the ticker symbol “DLTR”.

What is Dollar Tree’s dividend yield?

Dollar Tree’s current annual dividend yield is around 1%.

Does Dollar Tree sell online?

Yes, Dollar Tree has an online store where customers can purchase products for home delivery or in-store pickup.