DA Davidson Comments on Target's FY2026 Earnings (NYSE:TGT)

Key Points

• DA Davidson raised its FY2026 earnings estimate for Target to $7.61 per share, up from $7.51, maintaining a "Buy" rating with a price objective of $125.00.
• Target recently announced a quarterly dividend of $1.12 per share, with a yield of 4.5% and a payout ratio of 53.15%.
• While Target’s recent earnings report showed an EPS of $2.05, the company saw a .9% drop in revenue compared to the same quarter last year, highlighting ongoing challenges in its financial performance.

Target Corporation (NYSE:TGT - Free Report) - Analysts at DA Davidson lifted their FY2026 earnings estimates for shares of Target in a research report issued on Thursday, August 21st. DA Davidson analyst M. Baker now expects that the retailer will post earnings of $7.61 per share for the year, up from their prior forecast of $7.51. DA Davidson has a "Buy" rating and a $125.00 price objective on the stock. The consensus estimate for Target's current full-year earnings is $8.69 per share. DA Davidson also issued estimates for Target's FY2027 earnings at $7.94 EPS.

A number of other research firms have also weighed in on TGT. Citigroup boosted their target price on shares of Target from $94.00 to $100.00 and gave the stock a "neutral" rating in a report on Friday. Wedbush reissued an "outperform" rating on shares of Target in a report on Thursday, July 17th. Barclays reaffirmed an "underweight" rating and issued a $91.00 price objective on shares of Target in a research note on Monday, July 21st. Evercore ISI reduced their price objective on shares of Target from $108.00 to $106.00 and set an "in-line" rating on the stock in a research note on Thursday. Finally, Zacks Research raised shares of Target from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 19th. Ten equities research analysts have rated the stock with a Buy rating, twenty-three have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $113.74.

Target Trading Up 2.0%

TGT opened at $98.9880 on Monday. Target has a fifty-two week low of $87.35 and a fifty-two week high of $161.84. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.99 and a quick ratio of 0.32. The firm has a market capitalization of $44.98 billion, a price-to-earnings ratio of 11.54, a PEG ratio of 2.86 and a beta of 1.22. The company's 50 day moving average price is $102.06 and its two-hundred day moving average price is $103.42.

Target (NYSE:TGT - Get Free Report) last posted its earnings results on Wednesday, August 20th. The retailer reported $2.05 earnings per share for the quarter, topping analysts' consensus estimates of $2.04 by $0.01. Target had a net margin of 3.72% and a return on equity of 23.43%. The firm had revenue of $24.99 billion for the quarter, compared to analyst estimates of $24.84 billion. During the same period in the previous year, the firm posted $2.57 EPS. The company's revenue for the quarter was down .9% compared to the same quarter last year. Target has set its FY 2025 guidance at 7.000-9.000 EPS.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. WFA of San Diego LLC bought a new position in Target during the second quarter worth $25,000. Raleigh Capital Management Inc. boosted its stake in Target by 63.4% during the second quarter. Raleigh Capital Management Inc. now owns 263 shares of the retailer's stock worth $26,000 after acquiring an additional 102 shares in the last quarter. Kozak & Associates Inc. boosted its stake in Target by 2,530.0% during the second quarter. Kozak & Associates Inc. now owns 263 shares of the retailer's stock worth $27,000 after acquiring an additional 253 shares in the last quarter. Bernard Wealth Management Corp. bought a new position in Target during the fourth quarter worth $29,000. Finally, Investment Research & Advisory Group Inc. bought a new position in Target during the second quarter worth $29,000. 79.73% of the stock is owned by institutional investors.

Insider Transactions at Target

In related news, insider Brian C. Cornell sold 45,000 shares of the stock in a transaction on Wednesday, May 28th. The shares were sold at an average price of $96.18, for a total transaction of $4,328,100.00. Following the transaction, the insider directly owned 246,453 shares of the company's stock, valued at $23,703,849.54. This represents a 15.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.16% of the stock is currently owned by corporate insiders.

Target Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 1st. Investors of record on Wednesday, August 13th will be paid a dividend of $1.12 per share. The ex-dividend date of this dividend is Wednesday, August 13th. This represents a $4.48 annualized dividend and a yield of 4.5%. Target's dividend payout ratio is currently 53.15%.

Target Company Profile

Target Corporation operates as a general merchandise retailer in the United States. The company offers apparel for women, men, boys, girls, toddlers, and infants and newborns, as well as jewelry, accessories, and shoes; and beauty and personal care, baby gear, cleaning, paper products, and pet supplies.

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