Target (NYSE:TGT) Trading Up 0.4% - Still a Buy?

Target Company (NYSE:TGT) experienced a 0.4% increase during trading on Wednesday, reaching a high of $132.67 before settling at $132.40. Around 1,647,679 shares changed hands during this mid-day trading session, a significant drop of 64% compared to the average daily volume of 4,559,011 shares. The stock had previously closed at $131.92.

Wall Street Analysts Weigh In

Recent evaluations from various research analysts suggest a cautious outlook for Target shares. For instance, TD Cowen reduced their price target from $165.00 to $145.00 while maintaining a 'hold' rating as noted in their report on November 21st. Similarly, Daiwa America downgraded Target from a 'strong-buy' to a 'hold' rating on November 26th. Wells Fargo & Company also lowered their price target from $180.00 to $150.00, still rating it as 'overweight'. Deutsche Bank shifted their recommendation from 'buy' to 'hold' and cut their price target from $184.00 down to $108.00. BMO Capital Markets also adjusted their view, bringing the price target down from $160.00 to $120.00, while assigning a 'market perform' rating. Overall, one analyst has issued a sell rating, seventeen hold ratings, and fifteen buy ratings, establishing a consensus rating of 'Hold' with an average target price of $160.57 according to MarketBeat data.

Performance Overview

Currently, Target has a market capitalization of $60.67 billion, with a price-to-earnings (P/E) ratio of 14.04, and a price-to-earnings-growth (P/E/G) ratio of 2.23. Its beta is 1.17, indicating that the stock has a moderate level of volatility when compared to the market. Over recent months, the fifty-day simple moving average stood at $141.35 and the two-hundred-day simple moving average was noted at $146.31. Financially, the company shows a debt-to-equity ratio of 0.99, a current ratio of 0.94, and a quick ratio of 0.25.

Earnings Report

Target released its earnings results on November 20th. In this quarter, the company reported earnings per share (EPS) of $1.85, falling short of the analysts' consensus estimate of $2.30 by $0.45. The company achieved revenue of $25.23 billion, slightly missing the anticipated revenue of $25.87 billion. Target's net margin was 4.06%, and they reported a return on equity of 31.11%. Their quarterly revenue reflected a year-on-year improvement of 0.9%. Last year in the same period, Target posted an EPS of $2.10, and analysts forecast an average EPS of 8.6 for the current year.

Insider Activity

In related news, insider Richard H. Gomez sold 6,348 shares of Target on September 27th, at an average price of $157.17, totaling around $997,715.16. After this transaction, Gomez retains 123,551 shares, valued approximately at $19,418,510.67, marking a 4.89% decrease in his stock ownership. The insider transactions have been disclosed through the SEC filings, indicating that only 0.15% of the stock is currently held by insiders.

Institutional Investors' Position

Several institutional investors have adjusted their holdings in Target recently. Notably, Legacy Investment Solutions LLC acquired a new stake valued at $28,000 during the third quarter. Similarly, Slocum Gordon & Co LLP expanded their investments in the second quarter with a new stake also valued at around $28,000. Wolff Wiese Magana LLC increased their stake by 156.5% in the third quarter, bringing their total holdings to 218 shares worth $34,000 after purchasing an additional 133 shares. Other institutions like FSA Wealth Management LLC and Catalyst Capital Advisors LLC made new investments worth $36,000 and $38,000, respectively. Institutional investors now own approximately 79.73% of Target's stock.

Target Company Overview

Target Corporation operates primarily as a general merchandise retailer across the United States. The company provides a wide range of products, including apparel for all ages, jewelry, beauty items, baby supplies, cleaning products, and pet supplies.

Conclusion

The performance of Target shares reflects a mix of cautious optimism and concern. With various analysts downgrading their price targets and the company's latest earnings results not meeting expectations, investors may need to consider these factors when deciding whether to buy into Target at its current price.

Target, Stocks, Investment