Target (NYSE:TGT) Shares Gap Down Following Analyst Downgrade

Target Corporation (NYSE:TGT) gapped down before the market opened on Wednesday after Freedom Capital downgraded the stock from a strong-buy rating to a hold rating. The stock had previously closed at $127.24, but opened at $120.21. Target shares last traded at $117.9130, with a volume of 5,366,465 shares traded.

Other equities research analysts have also issued reports about the company. BNP Paribas Exane increased their price target on Target from $63.00 to $88.00 and gave the stock an “underperform” rating in a research report on Wednesday, March 4th. BMO Capital Markets increased their price target on Target from $105.00 to $130.00 and gave the stock a “market perform” rating in a research report on Wednesday, March 4th. Mizuho set a $120.00 price objective on Target in a research report on Thursday, March 5th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $132.00 price objective on shares of Target in a research report on Friday, May 8th. Finally, Evercore set a $130.00 price objective on Target in a research report on Monday. Eleven research analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, Target presently has a consensus rating of “Hold” and an average target price of $124.11.

Insider Buying and Selling at Target

In other news, CAO Matthew A. Liegel sold 2,053 shares of the stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $117.19, for a total value of $240,591.07. Following the transaction, the chief accounting officer owned 12,143 shares of the company’s stock, valued at $1,423,038.17. This represents a 14.46% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.16% of the stock is currently owned by company insiders.

Key Target News

Here are the key news stories impacting Target this week:

• Positive Sentiment: Target reported a strong first quarter, with EPS of $1.71 beating estimates and revenue of $25.44 billion also topping forecasts; comparable sales rose and management lifted full-year sales guidance, reinforcing the view that its turnaround strategy is gaining traction.
• Positive Sentiment: Analysts turned more constructive after the report, with DA Davidson raising its price target to $155 and Telsey Advisory Group lifting its target to $150, both implying meaningful upside from current levels.
• Positive Sentiment: Additional commentary highlighted improving traffic, stronger digital and membership revenue, and early strategy gains, which may support expectations for better execution over the rest of the year.
• Neutral Sentiment: Several firms raised price targets but kept neutral ratings, suggesting the earnings beat was solid but not yet enough to eliminate caution around valuation and near-term upside.
• Negative Sentiment: Not all updates were positive: Freedom Capital downgraded Target to hold, and some commentary warned that cost pressures, execution risk, and softer consumer sentiment could limit how quickly the turnaround translates into sustained profit growth.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in TGT. Brighton Jones LLC lifted its stake in shares of Target by 101.3% in the 4th quarter. Brighton Jones LLC now owns 6,080 shares of the retailer’s stock valued at $822,000 after purchasing an additional 3,059 shares during the period. Woodline Partners LP raised its stake in Target by 39.9% during the 1st quarter. Woodline Partners LP now owns 38,712 shares of the retailer’s stock worth $4,040,000 after buying an additional 11,047 shares during the period. NewEdge Advisors LLC raised its stake in Target by 22.8% during the 2nd quarter. NewEdge Advisors LLC now owns 69,660 shares of the retailer’s stock worth $6,872,000 after buying an additional 12,948 shares during the period. Sei Investments Co. raised its stake in Target by 8.0% during the 2nd quarter. Sei Investments Co. now owns 190,860 shares of the retailer’s stock worth $18,832,000 after buying an additional 14,195 shares during the period. Finally, Treasurer of the State of North Carolina raised its stake in Target by 11.0% during the 2nd quarter. Treasurer of the State of North Carolina now owns 272,787 shares of the retailer’s stock worth $26,910,000 after buying an additional 27,063 shares during the period. Institutional investors and hedge funds own 79.73% of the company’s stock.

Target Price Performance

The firm has a market cap of $57.23 billion, a price-to-earnings ratio of 16.65, a P/E/G ratio of 3.55 and a beta of 1.01. The company has a current ratio of 0.93, a quick ratio of 0.36 and a debt-to-equity ratio of 0.87. The company has a 50 day moving average of $122.36 and a 200 day moving average of $109.49.

Target (NYSE:TGT) last issued its quarterly earnings data on Wednesday, May 20th. The retailer reported $1.71 EPS for the quarter, topping the consensus estimate of $1.47 by $0.24. The business had revenue of $25.44 billion for the quarter, compared to the consensus estimate of $24.66 billion. Target had a return on equity of 22.92% and a net margin of 3.24%.The firm’s revenue was up 6.7% compared to the same quarter last year. During the same quarter last year, the business posted $1.30 EPS. Target has set its FY 2026 guidance at 7.500-8.500 EPS. Equities research analysts predict that Target Corporation will post 8.25 EPS for the current fiscal year.

Target Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Wednesday, May 13th will be paid a $1.14 dividend. The ex-dividend date of this dividend is Wednesday, May 13th. This represents a $4.56 annualized dividend and a dividend yield of 3.6%. Target’s dividend payout ratio (DPR) is currently 56.09%.

About Target

Target Corporation (NYSE: TGT) is a U.S.-based general merchandise retailer headquartered in Minneapolis, Minnesota. The company operates a network of full-line and small-format stores across the United States alongside a national e-commerce platform and mobile app. Target’s retail assortment spans apparel, home goods, electronics, groceries and household essentials, plus beauty, baby and pet categories. The firm complements national brands with a portfolio of owned and exclusive labels and partnerships that help differentiate its merchandise assortment.

Target traces its roots to the Dayton Company, founded by George Dayton in 1902; the Target discount chain was launched in 1962 and the parent company later adopted the Target Corporation name.