Target Corp. (TGT) Rating Increased to Hold at Zacks Investment Research
Target Corp. (NYSE:TGT) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Monday.
According to Zacks, “Target continued with its earnings beat performance, as it reported second-quarter fiscal 2016 results. However, top-line fell short of the Zacks Consensus Estimate for the fourth consecutive quarter. Total sales also declined year over year for the third straight quarter. The sale of the pharmacy and clinic businesses to CVS Health impacted the top line. Stiff competition from other discount retailers who are far more geographically diversified also hurt the company’s performance. As a result, management trimmed its fiscal 2016 earnings projection and provided a subdued comparable sales outlook citing tough retail environment. Nevertheless, the initiatives such as the development of omni-channel capacities, diversification and localization of assortments along with emphasis on flexible format stores, bode well. The company also intends to invest in merchandise categories such as Style, Baby, Kids and Wellness that are performing well.”
TGT has been the subject of several other reports. Morgan Stanley set a $64.00 target price on Target Corp. and gave the stock a “sell” rating in a research report on Friday, August 19th. Vetr lowered Target Corp. from a “strong-buy” rating to a “buy” rating and set a $77.55 target price for the company. in a research report on Monday, September 12th. Argus restated a “hold” rating on shares of Target Corp. in a research report on Thursday, September 8th. Credit Suisse Group AG started coverage on Target Corp. in a research report on Friday, September 16th. They issued a “neutral” rating and a $65.00 price objective for the company. Finally, Barclays PLC reiterated an “underweight” rating and issued a $60.00 price objective on shares of Target Corp. in a research report on Friday, September 23rd. Three analysts have rated the stock with a sell rating, seventeen have given a hold rating and nine have issued a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus target price of $74.51.
Shares of Target Corp. (NYSE:TGT) opened at 71.44 on Monday. Target Corp. has a 52-week low of $65.50 and a 52-week high of $84.14. The stock has a 50 day moving average of $68.40 and a 200-day moving average of $70.71. The stock has a market capitalization of $41.06 billion, a price-to-earnings ratio of 13.22 and a beta of 0.59.
Target Corp. (NYSE:TGT) last posted its earnings results on Wednesday, August 17th. The retailer reported $1.23 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.12 by $0.11. The company earned $16.20 billion during the quarter. Target Corp. had a return on equity of 23.59% and a net margin of 4.59%. Target Corp.’s quarterly revenue was down 7.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.22 earnings per share. On average, equities research analysts predict that Target Corp. will post $4.94 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Saturday, December 10th. Stockholders of record on Wednesday, November 16th will be issued a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 3.36%. The ex-dividend date is Monday, November 14th. Target Corp.’s dividend payout ratio (DPR) is currently 44.44%.
Several hedge funds have recently added to or reduced their stakes in the company. Loomis Sayles & Co. L P raised its stake in Target Corp. by 58.5% in the first quarter. Loomis Sayles & Co. L P now owns 2,159 shares of the retailer’s stock valued at $178,000 after buying an additional 797 shares during the period. Springbok Capital Management LLC raised its stake in Target Corp. by 11.0% in the first quarter. Springbok Capital Management LLC now owns 3,467 shares of the retailer’s stock valued at $285,000 after buying an additional 344 shares during the period. Panagora Asset Management Inc. raised its stake in Target Corp. by 134.4% in the first quarter. Panagora Asset Management Inc. now owns 1,101,674 shares of the retailer’s stock valued at $90,646,000 after buying an additional 631,590 shares during the period. Babson Capital Management LLC raised its stake in Target Corp. by 59.0% in the first quarter. Babson Capital Management LLC now owns 78,653 shares of the retailer’s stock valued at $6,472,000 after buying an additional 29,200 shares during the period. Finally, Squarepoint Ops LLC raised its stake in Target Corp. by 557.3% in the first quarter. Squarepoint Ops LLC now owns 18,259 shares of the retailer’s stock valued at $1,502,000 after buying an additional 15,481 shares during the period. 84.41% of the stock is currently owned by institutional investors.
Target Corp. Company Profile
Target Corporation offers everyday essentials and merchandise to its customers. The Company sells a range of general merchandise and food through its store and digital channels. The Company’s general merchandise stores offer an edited food assortment, including perishables, dry grocery, dairy and frozen items.
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