Unusual Options Activity Surrounding Target (NYSE:TGT)

On Monday, Target Corporation (NYSE:TGT) experienced an unusually high volume of options trading. Investors demonstrated increased interest by purchasing 74,141 call options, which marks a 35% rise from the average daily volume of 54,941 call options.

Recent Stock Performance

As for Target's stock, it opened at $135.09 on Wednesday. Currently, the 50-day moving average stands at $145.97, whereas the 200-day moving average is $147.52. Target's stock has seen a twelve-month low of $120.21 and a twelve-month high of $181.86. The company boasts a market capitalization of $61.90 billion, with a Price to Earnings (P/E) ratio of 14.32 and a P/E to Growth (P/E/G) ratio of 2.17. Additionally, the stock has a beta of 1.17, indicating volatility in relation to the market. Financial ratios show a quick ratio of 0.25, a current ratio of 0.94, and a debt-to-equity ratio of 0.99.

Quarterly Earnings Report

Target recently announced its quarterly earnings on November 20th. The company reported earnings per share (EPS) of $1.85, falling short of analysts' expectations, which averaged around $2.30, representing a miss of ($0.45). For the quarter, Target recorded revenue of $25.23 billion, while analysts had anticipated $25.87 billion. The retailer achieved a return on equity of 31.11% and a net margin of 4.06%. Year-over-year, Target's revenue increased by 0.9%. In the same quarter last year, the company reported an EPS of $2.10. Analysts project that Target's EPS will reach 8.6 for the current fiscal year.

Dividend Declaration

Target also announced a quarterly dividend, which was disbursed on December 10th. Investors who were on record as of November 20th received a dividend payment of $1.12 per share. This equates to an annualized dividend of $4.48, yielding 3.32%. The ex-dividend date was set for November 20th. Notably, Target's payout ratio stands at 47.51%.

Wall Street Analysts' Insights

In recent analyses, various research firms have shared their views on Target's stock. Jefferies Financial Group raised its price target to $195.00 with a "buy" rating on August 22nd. Similarly, UBS Group increased its price target to $200.00, also maintaining a "buy" rating on the same date. Conversely, TD Cowen adjusted its target from $165.00 to $145.00 while keeping a "hold" rating. Sanford C. Bernstein initiated coverage on Target, assigning a "market perform" rating with a target of $168.00. Telsey Advisory Group reaffirmed their "outperform" rating, with a price target of $195.00. Currently, one analyst rates the stock as a sell, seventeen provide a hold rating, and fifteen suggest a buy rating. The consensus rating for the stock is categorized as "Hold," with an average target price of $160.57 as per MarketBeat.com data.

Insider Trading Activities

In recent insider transactions, Richard H. Gomez sold 6,348 shares of Target's stock on September 27th. The shares were sold at an average price of $157.17, amounting to a total transaction of about $997,715.16. Post-transaction, Gomez's direct ownership in Target diminished by 4.89%, with an approximate value of $19,418,510.67 for the remaining 123,551 shares. This sale was duly reported in SEC filings, which are publicly available. Currently, insiders own approximately 0.15% of Target’s stock.

Institutional Trading Interest

Recent trends in institutional trading reflect significant activity. State Street Corp increased its ownership in Target by 8.3%, now holding 35,484,252 shares valued at approximately $5.53 billion after acquiring an additional 2,732,801 shares. Another notable increase came from International Assets Investment Management LLC, which raised its holdings by a staggering 9,940.6%, resulting in 2,001,391 shares worth about $311.94 million. Furthermore, Two Sigma Advisers LP enhanced its position by 173.2%, now holding 2,369,400 shares valued at approximately $369.30 million. FMR LLC raised its stake by 11.7%, possessing 9,980,381 shares valued at about $1.56 billion following additional acquisitions. Notably, AQR Capital Management LLC increased its ownership by 711.2%, achieving a total of 876,531 shares worth $129.76 million. In total, institutional investors own 79.73% of Target's stock.

About Target Corporation

Target Corporation operates as a general merchandise retailer in the United States. The company's product offerings span apparel for all demographics, beauty products, baby gear, and various household items.

Target, Options, Stock