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Target shares sold off hard Wednesday after the retailer surprised Wall Street with below-par first quarter same store sales growth, sending Dollar Tree shares down in sympathy.

Author:: Gregg Greenberg
Publish date:: May 18, 2016 2:49 PM EDT

Target (TGT) - Get Report shares sold off hard Wednesday after the retailer surprised Wall Street with below-par first quarter same store sales growth, sending Dollar Tree (DLTR) - Get Report shares down in sympathy. David Miller, portfolio manager for the Catalyst Insider Buying Fund (INSAX), said the dollar store chain will fare just fine over the long run due to heavy insider buying and a recession resistant price-point. 'Dollar Tree's top executives are taking money out of their own pockets to buy more stock which is always a good sign,' said Miller. 'And when companies like Macy's (M) - Get Report and Nordstrom (JWN) - Get Report were getting slammed in 2008, Dollar Tree was actually up over 60 percent because when times get tough people shop more at dollar stores, not less.' Dollar Tree's same store sales are estimated to be up 2 percent for its fiscal 2016 first quarter, compared to Target's 1.2 percent rise.