DA Davidson Issues Pessimistic Outlook for Target Earnings

Key Points

• DA Davidson has revised its Q2 2026 earnings per share estimate for Target down from $2.53 to $2.08, while maintaining a "Buy" rating and a target price of $125.00.
• Target's stock recently opened at $103.35, trending down 2.7%, with a fifty-two week low of $87.35 and a high of $167.40.
• The company is set to pay a quarterly dividend of $1.12 on September 1st, reflecting a yield of 4.3% based on an annual payout of $4.48.

Target Corporation (NYSE:TGT - Free Report) - Research analysts at DA Davidson dropped their Q2 2026 EPS estimates for shares of Target in a research report issued on Monday, August 11th. DA Davidson analyst M. Baker now expects that the retailer will earn $2.08 per share for the quarter, down from their previous forecast of $2.53. 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.

A number of other analysts have also recently weighed in on TGT. Wells Fargo & Company lowered their price target on shares of Target from $135.00 to $115.00 and set an "overweight" rating on the stock in a report on Thursday, May 22nd. Loop Capital set a $95.00 price objective on shares of Target in a research note on Thursday, July 17th. Sanford C. Bernstein cut shares of Target from a "market perform" rating to an "underperform" rating and decreased their price objective for the company from $97.00 to $82.00 in a research note on Monday, May 12th. Piper Sandler reiterated a "neutral" rating on shares of Target in a research note on Tuesday, July 29th. Finally, Citigroup decreased their target price on shares of Target from $97.00 to $94.00 and set a "neutral" rating for the company in a research note on Thursday, May 22nd. Three research analysts have rated the stock with a sell rating, twenty-three have issued a hold rating and ten have assigned a buy rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $115.26.

Target Stock Down 2.7%

NYSE:TGT opened at $103.35 on Wednesday. Target has a fifty-two week low of $87.35 and a fifty-two week high of $167.40. The stock has a market capitalization of $46.96 billion, a P/E ratio of 11.32, a P/E/G ratio of 2.99 and a beta of 1.22. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.25 and a current ratio of 0.94. The company's 50-day simple moving average is $101.22 and its 200-day simple moving average is $105.64.

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

Target Dividend Announcement

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

Insider Buying and Selling

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

Institutional Investors Weigh In On Target

A number of hedge funds and other institutional investors have recently bought and sold shares of TGT. Bontempo Ohly Capital Mgmt LLC raised its stake in shares of Target by 0.3% during the 4th quarter. Bontempo Ohly Capital Mgmt LLC now owns 28,668 shares of the retailer's stock worth $3,875,000 after buying an additional 85 shares during the last quarter. Anchor Investment Management LLC raised its stake in shares of Target by 1.7% during the 4th quarter. Anchor Investment Management LLC now owns 5,471 shares of the retailer's stock worth $740,000 after buying an additional 92 shares during the last quarter. Ancora Advisors LLC raised its stake in shares of Target by 0.9% during the 4th quarter. Ancora Advisors LLC now owns 10,369 shares of the retailer's stock worth $1,402,000 after buying an additional 92 shares during the last quarter. JNBA Financial Advisors raised its stake in shares of Target by 3.0% during the 2nd quarter. JNBA Financial Advisors now owns 3,347 shares of the retailer's stock worth $330,000 after buying an additional 96 shares during the last quarter. Finally, Hayek Kallen Investment Management raised its stake in shares of Target by 0.7% during the 4th quarter. Hayek Kallen Investment Management now owns 13,278 shares of the retailer's stock worth $1,795,000 after buying an additional 98 shares during the last quarter. Institutional investors and hedge funds own 79.73% of the company's stock.

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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