Target (NYSE:TGT) Hits New 1-Year Low Following Downgrade by Analyst

On Friday, shares of Target Co. (NYSE:TGT) fell to a new 52-week low during trading, closing at $103.29, down from a previous close of $104.20. This decline came after Stifel Nicolaus reduced their price target on the stock from $130.00 to $120.00. Currently, Stifel Nicolaus has a hold rating on the stock. During the trading session, shares dropped as low as $101.76, with over 1.33 million shares trading hands.

Target has faced scrutiny from several other financial institutions as well. Roth MKM reaffirmed a “neutral” rating while lowering its price target from $131.00 to $122.00 in a report dated March 5. Meanwhile, Guggenheim recently raised their price objective from $145.00 to $155.00, giving the retailer a “buy” rating.

Additionally, DA Davidson also lowered their price target from $153.00 to $140.00 but maintained a “buy” rating. Conversely, UBS Group revised their price target down from $170.00 to $155.00, while changing their rating to “buy” as well. From the analysis of various brokerage firms, one analyst has given a sell rating, while 17 have assigned a hold rating, and 15 have issued buy ratings, resulting in an average rating of “Hold” and a consensus price target of $145.55.

Institutional Ownership in Target

Recently, several institutional investors have adjusted their holdings in TGT. State Street Corp increased its stake by 8.3% in the third quarter, now owning over 35.48 million shares, valued at approximately $5.53 billion, following the purchase of an additional 2.73 million shares. Capital World Investors expanded its position by 6.3% in the fourth quarter, acquiring about 1.31 million shares for a total holding of 21.93 million shares valued at roughly $2.96 billion.

FMR LLC increased its holdings by 13.6% to own about 11.34 million shares, while Geode Capital Management LLC grew its stake by 5.0%, now holding just below 10 million shares. Additionally, Norges Bank acquired a new stake in Target valued at around $757.89 million. Overall, institutional investors and hedge funds hold approximately 79.73% of the stock.

Target's Financial Performance

Target has a market capitalization of approximately $47.51 billion, a price-to-earnings ratio of 11.06, a P/E/G of 1.94, and a beta of 1.18. The company maintains a debt-to-equity ratio of 0.99, a quick ratio of 0.25, and a current ratio of 0.94, alongside a 50-day simple moving average of $125.89 and a 200-day average of $138.13.

The latest earnings report for Target was released on March 4. The retailer reported earnings of $2.41 per share, outperforming analysts’ expectations of $2.24 by $0.17. The quarterly revenue stood at $30.92 billion, slightly higher than the consensus estimate of $30.83 billion. Target achieved a return on equity of 31.11% and a net margin of 4.06%, with analysts projecting an EPS of 8.69 for the current fiscal year.

Dividend Announcement

Furthermore, Target has announced a quarterly dividend that is scheduled to be paid on Sunday, June 1. Shareholders on record as of May 14 will receive a dividend of $1.12, leading to an annualized dividend rate of $4.48 and a yield of 4.30%. The ex-dividend date for this distribution is also May 14, and the company has a payout ratio of 50.56%.

About Target Corporation

Target Corporation operates as a general merchandise retailer across the United States. The company sells various products ranging from apparel and accessories for all ages to beauty and personal care items, baby gear, cleaning supplies, paper goods, and pet supplies.

Conclusion

In summary, Target's recent downgrade by analysts has resulted in a notable decline in its stock price, reaching new lows over the past year. Market analysts continue to monitor the company's performance, with potential changes in investment strategies as reflected in recent earnings and dividend announcements.

Target, Stocks, Investment