Target Corp. (NYSE:TGT)‘s stock had its “underweight” rating reiterated by equities researchers at Barclays PLC in a research report issued on Friday. They presently have a $60.00 price objective on the retailer’s stock. Barclays PLC’s price objective indicates a potential downside of 12.49% from the stock’s current price.
The analysts wrote, “We continue to be bearish on Target and thought it would helpful for investors to understand our thesis in the context of the broader food retailing environment: Given Barclays’ Analyst Karen Short’s recent launch, U.S. Food & Staples Retailing: (22 September, 2016), we believe it is helpful to frame The Storm Before the Calm our view of Target in the four quadrants framework. In our view Target sits within the Attempting to Reinvent” category, given its flattish unit growth, deteriorating traffic trends, negative comps, and lack of sustainable competitive advantages. We believe that Target lacks a natural traffic driver in grocery, which in our view places it at a disadvantage vs. other retailers: With recent comp weakness, declines in fill-up convenience trips, and news reports from 9/14/2016 that management doesn’t view becoming a full-service grocer as part of its longer-term strategy, Target does not appear to be a destination for grocery. We believe this positioning is a disadvantage vs. retailers whose full-service offering provides a natural reason for consumers to frequent the store.””
Other analysts also recently issued reports about the company. Vetr raised Target Corp. from a “hold” rating to a “buy” rating and set a $75.70 target price for the company in a report on Monday, July 4th. Miller Tabak started coverage on Target Corp. in a research note on Friday, July 29th. They set a “buy” rating and a $87.00 price objective for the company. Citigroup Inc. reaffirmed a “buy” rating and set a $80.00 price objective on shares of Target Corp. in a research note on Thursday, August 18th. Nomura set a $75.00 price objective on Target Corp. and gave the company a “hold” rating in a research note on Thursday, August 11th. Finally, Zacks Investment Research raised Target Corp. from a “sell” rating to a “hold” rating in a research note on Tuesday, July 26th. Two investment analysts have rated the stock with a sell rating, sixteen have assigned a hold rating and nine have given a buy rating to the company. Target Corp. presently has an average rating of “Hold” and a consensus price target of $77.12.
Shares of Target Corp. (NYSE:TGT) traded up 0.45% during mid-day trading on Friday, hitting $68.87. The stock had a trading volume of 1,878,395 shares. The stock has a 50 day moving average price of $71.09 and a 200-day moving average price of $74.50. Target Corp. has a 52-week low of $65.50 and a 52-week high of $84.14. The company has a market cap of $39.59 billion, a PE ratio of 12.74 and a beta of 0.68.
Target Corp. (NYSE:TGT) last posted its earnings results on Wednesday, August 17th. The retailer reported $1.23 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.12 by $0.11. Target Corp. had a return on equity of 23.59% and a net margin of 4.59%. The business earned $16.20 billion during the quarter. During the same period in the previous year, the firm posted $1.22 earnings per share. The firm’s revenue for the quarter was down 7.2% on a year-over-year basis. On average, equities analysts expect that Target Corp. will post $4.96 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Saturday, December 10th. Investors of record on Wednesday, November 16th will be given a $0.60 dividend. This represents a $2.40 annualized dividend and a dividend yield of 3.50%. The ex-dividend date of this dividend is Monday, November 14th. Target Corp.’s dividend payout ratio (DPR) is currently 44.44%.
Hedge funds and other institutional investors have recently modified their holdings of the company. Evercore Wealth Management LLC raised its position in shares of Target Corp. by 2.5% in the second quarter. Evercore Wealth Management LLC now owns 17,907 shares of the retailer’s stock valued at $1,250,000 after buying an additional 441 shares during the period. Macquarie Group Ltd. raised its position in Target Corp. by 31.2% in the second quarter. Macquarie Group Ltd. now owns 119,971 shares of the retailer’s stock valued at $8,376,000 after buying an additional 28,512 shares during the period. Williams Jones & Associates LLC raised its position in Target Corp. by 102.6% in the second quarter. Williams Jones & Associates LLC now owns 7,700 shares of the retailer’s stock valued at $538,000 after buying an additional 3,900 shares during the period. Kentucky Retirement Systems Insurance Trust Fund bought a new position in Target Corp. during the second quarter valued at approximately $1,661,000. Finally, Kentucky Retirement Systems bought a new position in Target Corp. during the second quarter valued at approximately $3,499,000. 86.19% of the stock is currently owned by institutional investors and hedge funds.
About Target Corp.
Target Corporation offers everyday essentials and merchandise to its customers. The Company sells a range of general merchandise and food through its store and digital channels. The Company’s general merchandise stores offer an edited food assortment, including perishables, dry grocery, dairy and frozen items.
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