Fairholme Capital Management LLC Takes Position in Target Corporation $TGT

Key Points

• Fairholme Capital Management opened a new position in Target, buying 23,000 shares worth about $2.25 million. Target is now its 10th-largest holding and makes up roughly 0.2% of the portfolio.
• Target’s latest quarterly results came in ahead of expectations, with EPS of $1.71 versus the $1.47 estimate and revenue of $25.44 billion, up 6.7% year over year. The company also raised its full-year guidance for FY 2026 to $7.50-$8.50 EPS.
• Target increased its quarterly dividend to $1.16 per share from $1.14, implying an annualized yield of about 3.6%. Analysts currently have a consensus rating of Hold, with an average price target of $126.11.

Fairholme Capital Management LLC acquired a new stake in Target Corporation (NYSE:TGT - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 23,000 shares of the retailer's stock, valued at approximately $2,248,000. Target makes up approximately 0.2% of Fairholme Capital Management LLC's investment portfolio, making the stock its 10th largest holding.

Several other hedge funds and other institutional investors have also modified their holdings of TGT. Vanguard Group Inc. lifted its stake in shares of Target by 12.6% in the 3rd quarter. Vanguard Group Inc. now owns 57,925,898 shares of the retailer's stock valued at $5,195,953,000 after purchasing an additional 6,481,560 shares in the last quarter. Norges Bank acquired a new position in shares of Target in the 4th quarter valued at about $587,903,000. TOMS Capital Investment Management LP acquired a new position in shares of Target in the 4th quarter valued at about $257,571,000. AQR Capital Management LLC raised its holdings in shares of Target by 243.8% during the 4th quarter. AQR Capital Management LLC now owns 2,870,210 shares of the retailer's stock valued at $280,563,000 after buying an additional 2,035,298 shares during the period. Finally, Healthcare of Ontario Pension Plan Trust Fund raised its holdings in shares of Target by 6,639.1% during the 4th quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,912,963 shares of the retailer's stock valued at $186,992,000 after buying an additional 1,884,577 shares during the period. 79.73% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Target

In other news, insider Cara A. Sylvester sold 10,000 shares of the business's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $125.89, for a total value of $1,258,900.00. Following the completion of the sale, the insider directly owned 45,930 shares in the company, valued at approximately $5,782,127.70. The trade was a 17.88% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.13% of the company's stock.

Target Stock Performance

Shares of TGT opened at $127.80 on Thursday. Target Corporation has a 52-week low of $83.44 and a 52-week high of $137.87. 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 market cap of $58.05 billion, a price-to-earnings ratio of 16.88, a PEG ratio of 2.61 and a beta of 1.00. The business's 50 day moving average is $126.04 and its two-hundred day moving average is $114.60.

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

Target Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Wednesday, August 12th will be issued a $1.16 dividend. This is a positive change from Target's previous quarterly dividend of $1.14. The ex-dividend date is Wednesday, August 12th. This represents a $4.64 dividend on an annualized basis and a dividend yield of 3.6%. Target's dividend payout ratio (DPR) is presently 60.24%.

Analysts Set New Price Targets

Several brokerages recently commented on TGT. Argus set a $150.00 target price on Target in a report on Friday, May 22nd. Morgan Stanley increased their price objective on shares of Target from $125.00 to $145.00 and gave the company an "overweight" rating in a research report on Wednesday, March 4th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Target in a research report on Monday, May 4th. DA Davidson increased their price objective on shares of Target from $140.00 to $155.00 and gave the company a "buy" rating in a research report on Thursday, May 21st. Finally, Barclays reaffirmed an "underweight" rating on shares of Target in a research report on Monday, June 1st. Eleven investment analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Target presently has a consensus rating of "Hold" and an average target price of $126.11.

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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