DA Davidson Has Negative Forecast for Target FY2026 Earnings

Key Points

• DA Davidson has lowered its FY2026 earnings per share estimate for Target from $7.96 to $7.51, maintaining a "Buy" rating with a target price of $125.00.
• Target's recent quarterly earnings showed a miss with $1.30 EPS compared to the consensus estimate of $1.65, and revenue decreased by 2.8% year-over-year.
• The firm announced a quarterly dividend of $1.12 per share, with an annualized yield of 4.3% and a payout ratio of 49.23%.

Target Corporation (NYSE:TGT - Free Report) - Equities researchers at DA Davidson dropped their FY2026 earnings per share estimates for Target in a research note issued on Monday, August 11th. DA Davidson analyst M. Baker now forecasts that the retailer will post earnings per share of $7.51 for the year, down from their previous estimate of $7.96. DA Davidson currently has a "Buy" rating and a $125.00 price target 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 $7.79 EPS.

Several other research firms have also recently issued reports on TGT. Mizuho cut their target price on Target from $92.00 to $88.00 and set a "neutral" rating for the company in a research note on Thursday, May 22nd. Barclays reissued an "underweight" rating and set a $91.00 target price on shares of Target in a research note on Monday, July 21st. Wall Street Zen cut Target from a "hold" rating to a "sell" rating in a research note on Saturday. Wedbush reissued an "outperform" rating on shares of Target in a research note on Thursday, July 17th. Finally, Guggenheim cut their target price on Target from $155.00 to $115.00 and set a "buy" rating for the company in a research note on Tuesday, May 27th. Three analysts have rated the stock with a sell rating, twenty-three have issued a hold rating and ten have issued a buy rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $115.65.

Target Price Performance

TGT stock opened at $104.06 on Tuesday. The business has a fifty day moving average of $101.01 and a two-hundred day moving average of $105.64. The company has a quick ratio of 0.25, a current ratio of 0.94 and a debt-to-equity ratio of 0.96. The stock has a market cap of $47.28 billion, a price-to-earnings ratio of 11.43, a price-to-earnings-growth ratio of 3.01 and a beta of 1.22. Target has a 52-week low of $87.35 and a 52-week high of $167.40.

Target (NYSE:TGT - Get Free Report) last posted its quarterly earnings results on Wednesday, May 21st. The retailer reported $1.30 EPS for the quarter, missing the consensus estimate of $1.65 by ($0.35). Target had a net margin of 3.95% and a return on equity of 25.59%. The company had revenue of $24.20 billion during the quarter, compared to analyst estimates of $24.54 billion. During the same period in the prior year, the business posted $2.03 EPS. Target's revenue for the quarter was down 2.8% compared to the same quarter last year.

Institutional Trading of Target

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Bontempo Ohly Capital Mgmt LLC increased its position in shares of Target by 0.3% during the fourth quarter. Bontempo Ohly Capital Mgmt LLC now owns 28,668 shares of the retailer's stock worth $3,875,000 after purchasing an additional 85 shares in the last quarter. Anchor Investment Management LLC increased its position in shares of Target by 1.7% during the fourth quarter. Anchor Investment Management LLC now owns 5,471 shares of the retailer's stock worth $740,000 after purchasing an additional 92 shares in the last quarter. Ancora Advisors LLC increased its position in shares of Target by 0.9% during the fourth quarter. Ancora Advisors LLC now owns 10,369 shares of the retailer's stock worth $1,402,000 after purchasing an additional 92 shares in the last quarter. JNBA Financial Advisors increased its position in shares of Target by 3.0% during the second quarter. JNBA Financial Advisors now owns 3,347 shares of the retailer's stock worth $330,000 after purchasing an additional 96 shares in the last quarter. Finally, Hayek Kallen Investment Management increased its position in shares of Target by 0.7% during the fourth quarter. Hayek Kallen Investment Management now owns 13,278 shares of the retailer's stock worth $1,795,000 after purchasing an additional 98 shares in the last quarter. Institutional investors and hedge funds own 79.73% of the company's stock.

Insider Transactions at Target

In other Target news, insider Brian C. Cornell sold 45,000 shares of Target stock in a transaction dated Wednesday, May 28th. The stock was sold at an average price of $96.18, for a total transaction of $4,328,100.00. Following the completion of the sale, the insider directly owned 246,453 shares of the company's stock, valued at $23,703,849.54. The trade was a 15.44% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.16% of the stock is owned by company insiders.

Target Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 1st. Shareholders of record on Wednesday, August 13th will be issued a dividend of $1.12 per share. This represents a $4.48 dividend on an annualized basis and a yield of 4.3%. The ex-dividend date of this dividend is Wednesday, August 13th. Target's payout ratio is 49.23%.

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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