Target (NYSE:TGT) Issues Quarterly Earnings Results, Beats Estimates By $0.28 EPS

Target (NYSE:TGT) issued its earnings results on Tuesday. The retailer reported $2.44 earnings per share for the quarter, beating analysts’ consensus estimates of $2.16 by $0.28, FiscalAI reports. Target had a net margin of 3.58% and a return on equity of 22.74%.

Target Stock Down 0.5%

Shares of NYSE TGT opened at $113.20 on Tuesday. The company’s 50 day moving average price is $108.10 and its 200-day moving average price is $97.78. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.27 and a current ratio of 0.97. Target has a 52-week low of $83.44 and a 52-week high of $127.06. The company has a market capitalization of $51.26 billion, a P/E ratio of 13.74 and a beta of 1.14.

Target Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Sunday, March 1st. Stockholders of record on Wednesday, February 11th were given a $1.14 dividend. The ex-dividend date was Wednesday, February 11th. This represents a $4.56 dividend on an annualized basis and a dividend yield of 4.0%. Target’s payout ratio is 55.34%.

Analyst Ratings Changes

Several equities research analysts recently weighed in on TGT shares. Evercore set a $105.00 price objective on Target in a report on Tuesday, February 17th. Roth Mkm set a $88.00 target price on Target in a research report on Thursday, November 20th. Deutsche Bank Aktiengesellschaft set a $108.00 price target on Target in a research note on Thursday, January 8th. Zacks Research raised Target from a “strong sell” rating to a “hold” rating in a research note on Wednesday, December 3rd. Finally, Piper Sandler raised their price objective on shares of Target from $85.00 to $102.00 and gave the company a “neutral” rating in a report on Monday, February 23rd. Ten research analysts have rated the stock with a Buy rating, twenty have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $107.66.

Target News Summary

Here are the key news stories impacting Target this week:

• Positive Sentiment: Q4 EPS beat expectations — Target reported $2.44 EPS vs. $2.16 expected, and highlighted a 3.58% net margin and 22.7% ROE, which supports near-term earnings confidence. Read More.
• Positive Sentiment: Company pointed to category-level wins — Food & Beverage, Beauty and Toys grew in Q4, and Essentials/Home showed improvement versus Q3, suggesting pockets of durable momentum. Read More.
• Neutral Sentiment: Investor day/webcast and guidance shaped expectations — management presented a turnaround plan at the investor meeting, which investors are parsing for credibility and timing of results. Read More.
• Neutral Sentiment: Q4 net sales were in line with the company’s expectations ($30.5B), limiting upside from top-line surprises even as margins and EPS beat. Read More.
• Negative Sentiment: Annual sales declined (~1.7%), continuing multi-year top-line stagnation that keeps pressure on long-term growth expectations. Read More.
• Negative Sentiment: Investor pushback and activist-like criticism of management tactics raise governance and execution risk as Target executes its turnaround under a new CEO. Read More.
• Negative Sentiment: Analyst stance remains mixed to cautious — Bank of America flagged an underperform view and some shops show neutral ratings or price targets below current levels, which can weigh on near-term sentiment. Read More.

Hedge Funds Weigh In On Target

Hedge funds and other institutional investors have recently bought and sold shares of the company. Jessup Wealth Management Inc acquired a new stake in Target during the 4th quarter worth about $25,000. WFA of San Diego LLC bought a new stake in shares of Target during the 2nd quarter valued at about $25,000. Altshuler Shaham Ltd bought a new stake in shares of Target during the 4th quarter valued at about $26,000. Garton & Associates Financial Advisors LLC acquired a new stake in Target during the fourth quarter worth approximately $36,000. Finally, Darwin Wealth Management LLC acquired a new stake in Target during the second quarter worth approximately $37,000. Institutional investors and hedge funds own 79.73% of the company’s stock.

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.