Dollar Tree (DLTR) stock is rising today after the company announced that Chairman and CEO Rick Dreiling is stepping down. The retail chain confirmed that Dreiling is resigning from his position and that it has named COO Michael C. Creedon Jr. as interim CEO while it searches for a permanent replacement. So far, this development has not impacted DLTR stock negatively, as it sparked some slight momentum late in the trading day.
What’s Happening with Dollar Tree Stock?
After some volatility early in the day, Dollar Tree stock closed out the day up less than 1%. During after-hours trading, though, it has risen 6%, indicating that the market is reacting well to news of Dreiling’s resignation. After DLTR stock plunged in August 2024, the company has mostly trended downward and is currently down 31% for the quarter.
Why is Dreiling stepping down as Dollar Tree CEO? In a statement released by the company today, he cited medical reasons, admitting that his health is presenting new challenges. Paul Hilal, Vice Chair of the Dollar Tree Board of Directors, expressed confidence in Creedon, stating, “Mike is well-prepared for this new role. It builds upon his important contributions and the expansion of his responsibilities earlier this year.”
Additionally, Dollar Tree has also reaffirmed its commitment to completing a formal review of its “strategic alternatives” for Family Dollar, one of its subsidiaries. This could also be helping generate positive momentum for DLTR stock, as it shows that the company is focused on making changes.
Is Dollar Tree Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on DLTR stock based on eight Buys, 15 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After shares declined 42% over the past year, the average DLTR price target of $83.64 per share implies 25% upside potential.
