Target (NYSE:TGT) Shares Up 2.1% - Here's Why

On Wednesday, shares of Target Co. (NYSE:TGT - Get Free Report) experienced a 2.1% increase in value. The stock reached a peak of $136.29 before settling at $134.30 at the last trade. During the day, approximately 2,191,221 shares changed hands, marking a 52% decline from the average daily trading volume of 4,540,547 shares. The previous day's close was at $131.60.

Analyst Ratings Changes

Recent weeks have seen several shifts in analyst ratings for Target. Notably, HSBC downgraded the stock from a "buy" to a "hold" with a new price target of $138.00 as of November 20th. Conversely, UBS Group raised their target price from $185.00 to $200.00, maintaining a "buy" rating in their report from August 22nd. Telsey Advisory Group also maintained an "outperform" rating with a target price of $195.00. Truist Financial raised their price outlook from $156.00 to $162.00, but kept a "hold" rating. In contrast, Deutsche Bank downgraded Target from a "buy" to a "hold", lowering their target price from $184.00 to $108.00. Overall, one analyst has rated the stock as a sell, 17 as a hold, while 15 analysts recommend it as a buy. Currently, Target has a consensus rating of "Hold" with an average price target of $160.57 according to MarketBeat.

Target Price Performance

The company holds a market cap of $60.68 billion and has a price-to-earnings ratio of 14.04, with a PEG ratio of 2.23. Target's stock has a beta of 1.17, indicating stability. Its 50-day simple moving average stands at $143.96, while the 200-day simple moving average is at $146.91. Additionally, it has a quick ratio of 0.25, a current ratio of 0.94, and a debt-to-equity ratio of 0.99.

Quarterly Earnings Announced

In their most recent quarterly earnings report released on November 20th, Target revealed an earnings per share (EPS) of $1.85, falling short of the consensus estimate of $2.30 by $0.45. The company's return on equity was recorded at 31.11% with a net margin of 4.06%. Total revenue for the quarter reached $25.23 billion, slightly lower than the anticipated $25.87 billion. This marked a 0.9% increase from the same quarter of the previous year, when the EPS was $2.10. Analysts expect Target to achieve a total EPS of 8.6 for the current fiscal year.

Insider Transactions

In recent insider trading activity, Richard H. Gomez sold 6,348 shares of Target on September 27th at an average price of $157.17. The total from this sale was approximately $997,715.16, representing a 4.89% reduction in his stock holdings. Following this transaction, Gomez now owns 123,551 shares valued at about $19.42 million. Insider ownership is currently at 0.15%.

Institutional Investor Activity

Recent reports indicate increasing institutional interest in Target. For example, State Street Corp raised its stake by 8.3% in the third quarter, now holding 35,484,252 shares worth $5.53 billion after acquiring an additional 2,732,801 shares. Similarly, FMR LLC increased their holdings by 11.7%, currently owning 9,980,381 shares valued at approximately $1.56 billion. Geode Capital Management LLC also reported a 1.4% increase in their stake, bringing their total to 9,414,025 shares worth $1.46 billion. Other institutional investors, such as Legal & General Group Plc and Victory Capital Management Inc., also reported increases in their holdings. Currently, institutional and hedge funds own 79.73% of the stock.

About Target Corporation

Target Corporation operates as a general merchandise retailer within the United States, offering a variety of products that include clothing for all ages, beauty and personal care items, baby supplies, cleaning and paper products, as well as pet supplies.

Conclusion

While various analysts hold differing opinions on Target's stock value, the recent increase in share price is encouraging for investors. The changes in insider transactions and institutional activities indicate a continuously evolving market perception.

Target, Stocks, Earnings