Alps Advisors Inc. Makes New Investment in Target Corporation $TGT

Key Points

• Alps Advisors Inc. opened a new position in Target during the fourth quarter, buying 258,328 shares worth about $25.3 million. The stake represented roughly 0.06% of Target.
• Target reported strong quarterly results, with EPS of $1.71 beating estimates and revenue of $25.44 billion topping expectations. The company also raised its full-year guidance range to 7.50–8.50 EPS.
• Target increased its quarterly dividend to $1.16 per share, up from $1.14, implying an annualized yield of about 3.5%. Meanwhile, analysts remain cautious overall, with a consensus rating of Hold and an average price target of $125.93.

Alps Advisors Inc. acquired a new position in shares of Target Corporation (NYSE:TGT - Free Report) during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 258,328 shares of the retailer's stock, valued at approximately $25,252,000. Alps Advisors Inc. owned about 0.06% of Target at the end of the most recent reporting period.

A number of other hedge funds have also recently bought and sold shares of TGT. WFA of San Diego LLC bought a new stake in Target during the second quarter worth $25,000. Jessup Wealth Management Inc purchased a new position in Target in the fourth quarter worth $25,000. Global Wealth Strategies & Associates grew its stake in Target by 192.0% in the 4th quarter. Global Wealth Strategies & Associates now owns 292 shares of the retailer's stock valued at $29,000 after purchasing an additional 192 shares during the period. Eagle Bay Advisors LLC purchased a new stake in shares of Target during the 4th quarter valued at $30,000. Finally, True Wealth Design LLC increased its position in shares of Target by 168.9% during the 4th quarter. True Wealth Design LLC now owns 355 shares of the retailer's stock valued at $35,000 after purchasing an additional 223 shares during the last quarter. 79.73% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Target

In related news, insider Cara A. Sylvester sold 10,000 shares of the company's stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $125.89, for a total value of $1,258,900.00. Following the transaction, the insider directly owned 45,930 shares in the company, valued at approximately $5,782,127.70. This represents a 17.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Matthew A. Liegel sold 2,053 shares of the company's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $117.19, for a total transaction of $240,591.07. Following the completion of the transaction, the chief accounting officer owned 12,143 shares in the company, valued at approximately $1,423,038.17. This trade represents a 14.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.13% of the stock is currently owned by corporate insiders.

Target Price Performance

TGT opened at $132.59 on Friday. The company has a market capitalization of $60.22 billion, a price-to-earnings ratio of 17.52, a PEG ratio of 2.50 and a beta of 1.00. The company has a quick ratio of 0.30, a current ratio of 0.93 and a debt-to-equity ratio of 0.87. The firm has a 50-day moving average price of $125.12 and a 200-day moving average price of $113.34. Target Corporation has a twelve month low of $83.44 and a twelve month high of $133.10.

Target (NYSE:TGT - Get Free Report) last posted its earnings results on Wednesday, May 20th. The retailer reported $1.71 earnings per share for the quarter, topping the consensus estimate of $1.47 by $0.24. Target had a net margin of 3.24% and a return on equity of 22.92%. The firm had revenue of $25.44 billion during the quarter, compared to the consensus estimate of $24.66 billion. During the same quarter last year, the company earned $1.30 earnings per share. The company's revenue was up 6.7% on a year-over-year basis. Target has set its FY 2026 guidance at 7.500-8.500 EPS. Equities analysts expect that Target Corporation will post 8.35 EPS for the current year.

Target Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Wednesday, August 12th will be given a $1.16 dividend. This represents a $4.64 annualized dividend and a dividend yield of 3.5%. This is a positive change from Target's previous quarterly dividend of $1.14. The ex-dividend date is Wednesday, August 12th. Target's dividend payout ratio (DPR) is currently 60.24%.

Analyst Ratings Changes

A number of brokerages recently weighed in on TGT. Robert W. Baird boosted their price target on shares of Target from $125.00 to $135.00 and gave the stock a "neutral" rating in a report on Thursday, May 21st. Citigroup boosted their price target on shares of Target from $117.00 to $133.00 and gave the stock a "neutral" rating in a report on Wednesday, May 6th. Telsey Advisory Group boosted their price target on shares of Target from $148.00 to $150.00 and gave the stock an "outperform" rating in a report on Thursday, May 21st. Barclays reissued an "underweight" rating on shares of Target in a report on Monday, June 1st. Finally, Mizuho set a $120.00 price target on shares of Target in a report on Thursday, March 5th. Eleven investment analysts have rated the stock with a Buy rating, nineteen have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, Target has a consensus rating of "Hold" and an average price target of $125.93.

About Target

Target Corporation NYSE: TGT is a U.S.-based general merchandise retailer headquartered in Minneapolis, Minnesota. The company operates a network of full-line and small-format stores across the United States alongside a national e-commerce platform and mobile app. Target’s retail assortment spans apparel, home goods, electronics, groceries and household essentials, plus beauty, baby and pet categories. The firm complements national brands with a portfolio of owned and exclusive labels and partnerships that help differentiate its merchandise assortment.

Target traces its roots to the Dayton Company, founded by George Dayton in 1902; the Target discount chain was launched in 1962 and the parent company later adopted the Target Corporation name.

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