Target (NYSE:TGT) Hits New 52-Week Low - Here's What Happened

On Monday, shares of Target Corporation (NYSE:TGT - Get Free Report) reached a new 52-week low, trading as low as $111.84 before closing at $113.34. The trading volume was notably high, with over 5.4 million shares changing hands, compared to the previous close of $115.08.

Analyst Ratings

In recent days, several financial institutions have released updates on Target’s stock. For instance, Wells Fargo & Company lowered their target price from $150.00 to $135.00 while maintaining an "overweight" rating. On the other hand, Daiwa America opted to downgrade Target's stock from a "strong-buy" to a "hold" rating. Meanwhile, BMO Capital Markets adjusted their price target from $160.00 down to $120.00, issuing a "market perform" rating. JPMorgan Chase & Co. also reduced their price target from $146.00 to $140.00, assigning a "neutral" rating. Lastly, DA Davidson cut their objective from $153.00 to $140.00 while holding a "buy" rating. Currently, one analyst has issued a sell rating, while eighteen recommend holding and fourteen suggest buying the stock. According to data from MarketBeat, Target has a consensus rating of "Hold" and an average price target of $145.87.

Current Stock Performance

As of now, Target's stock is down 1.2%. The company has a market capitalization of $52.12 billion, a price-to-earnings ratio of 12.06, and a PEG ratio of 1.94. Additionally, it has a beta of 1.18, indicating higher volatility compared to the overall market. The fifty-day moving average stands at $132.05, while the two-hundred day moving average is at $141.37. Notably, Target has a current ratio of 0.94 and a quick ratio of 0.25, along with a debt-to-equity ratio of 0.99.

Recent Earnings Report

Target released its quarterly earnings on March 4th, reporting earnings of $2.41 per share, which exceeded analysts' expectations of $2.24 by $0.17. The company achieved a net margin of 4.06% and a return on equity of 31.11%. Revenue for the quarter reached $30.92 billion, surpassing forecasts of $30.83 billion. Analysts predict that Target will post earnings per share of 8.69 for the current fiscal year.

Dividend Announcement

Recently, Target also declared a quarterly dividend which was paid out on March 1st. Shareholders who were on record by February 12th received a dividend of $1.12, representing an annualized dividend of $4.48 and a yield of 3.94%. The company's current dividend payout ratio is 50.56%.

Institutional Investments

There have been notable changes among institutional investors regarding their stakes in Target. In the third quarter, Legacy Investment Solutions LLC acquired a new position worth approximately $28,000 in Target. Hopwood Financial Services Inc. followed suit, purchasing a new stake valued at around $29,000. Furthermore, Bernard Wealth Management Corp. also purchased a stake in the fourth quarter for about $29,000. MCF Advisors LLC increased their holdings by 175.3%, now owning 256 shares valued at $35,000. Similarly, Raleigh Capital Management Inc. boosted its position by 110.7%, also owning shares valued at $35,000. As a whole, 79.73% of Target's stock is owned by institutional and hedge funds.

About Target Corporation

Target Corporation functions as a general merchandise retailer in the United States, offering a wide array of products including clothing for all ages, jewelry, personal care items, baby supplies, cleaning products, and pet accessories.

Conclusion

As Target continues to navigate these turbulent waters, investors are left pondering whether now is a good time to buy or if caution is the better approach.

Target, Stocks, Low