Foster & Motley Inc. Purchases New Shares in Target Corporation $TGT

Key Points

• Foster & Motley acquired 43,770 Target shares during the second quarter, valued at approximately $5.7 million. Institutional investors collectively own 79.73% of the company.
• Analyst sentiment remains mixed, with Target holding a consensus “Hold” rating and an average price target of $143.85, below its reported trading price of $152.63.
• Target raised its quarterly dividend to $1.16 per share, equivalent to a 3.0% annualized yield, while its latest quarterly earnings and revenue exceeded analyst expectations.

Foster & Motley Inc. purchased a new stake in shares of Target Corporation (NYSE:TGT - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund purchased 43,770 shares of the retailer's stock, valued at approximately $5,717,000.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its position in shares of Target by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 58,212,397 shares of the retailer's stock worth $5,690,262,000 after buying an additional 286,499 shares during the period. BlackRock Inc. purchased a new position in Target in the 2nd quarter worth approximately $5,054,604,000. State Street Corp lifted its holdings in shares of Target by 0.3% during the fourth quarter. State Street Corp now owns 37,772,533 shares of the retailer's stock valued at $3,692,265,000 after purchasing an additional 124,468 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its stake in Target by 3.4% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 17,065,926 shares of the retailer's stock valued at $1,668,194,000 after acquiring an additional 561,898 shares during the period. Finally, Bank of New York Mellon Corp purchased a new stake in Target in the second quarter worth approximately $831,466,000. 79.73% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. Bank of America restated an "underperform" rating and set a $124.00 target price (up from $110.00) on shares of Target in a research report on Wednesday, August 12th. Guggenheim lifted their target price on Target from $145.00 to $150.00 and gave the company a "buy" rating in a research note on Monday, July 20th. Evercore set a $150.00 price target on shares of Target in a research note on Tuesday, August 4th. TD Cowen reissued a "hold" rating on shares of Target in a report on Monday, August 10th. Finally, Truist Financial lifted their price target on Target from $130.00 to $147.00 and gave the stock a "hold" rating in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, sixteen have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $143.85.

Insiders Place Their Bets

In other Target news, insider Cara A. Sylvester sold 10,000 shares of the company's stock in a transaction on Friday, May 29th. The stock was sold at an average price of $125.89, for a total transaction of $1,258,900.00. Following the completion of the sale, the insider owned 45,930 shares in the company, valued at $5,782,127.70. This represents a 17.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.13% of the stock is currently owned by corporate insiders.

Target Trading Up 1.1%

NYSE TGT opened at $152.63 on Wednesday. The stock has a market cap of $69.32 billion, a PE ratio of 20.16, a PEG ratio of 2.51 and a beta of 0.96. The company's 50-day moving average price is $139.08 and its 200-day moving average price is $126.98. Target Corporation has a 12 month low of $83.44 and a 12 month high of $156.47. The company has a current ratio of 0.93, a quick ratio of 0.30 and a debt-to-equity ratio of 0.87.

Target (NYSE:TGT - Get Free Report) last posted its quarterly earnings results on Wednesday, May 20th. The retailer reported $1.71 earnings per share for the quarter, beating the consensus estimate of $1.47 by $0.24. The firm had revenue of $25.44 billion during the quarter, compared to the consensus estimate of $24.66 billion. Target had a net margin of 3.24% and a return on equity of 22.92%. The company's revenue was up 6.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.30 earnings per share. Equities research analysts forecast that Target Corporation will post 8.43 earnings per share for the current year.

Target Increases Dividend

The firm 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. The ex-dividend date is Wednesday, August 12th. This represents a $4.64 annualized dividend and a dividend yield of 3.0%. This is an increase from Target's previous quarterly dividend of $1.14. Target's dividend payout ratio (DPR) is presently 61.29%.

Key Headlines Impacting Target

Here are the key news stories impacting Target this week:

• Positive Sentiment: DA Davidson raised its price target on Target from $155 to $170 and reiterated a “buy” rating, implying additional upside from recent trading levels. Target price target raised by DA Davidson
• Positive Sentiment: Analysts are highlighting Target’s dividend appeal, which may support demand from income-oriented investors while the stock trades at a valuation below some retail peers. Why Target is a great dividend stock right now
• Neutral Sentiment: Target is scheduled to report second-quarter earnings before the market opens on Wednesday, August 19, followed by a 7:00 a.m. conference call. The event is the immediate catalyst for the stock and could produce significant volatility. Target second-quarter earnings conference call
• Neutral Sentiment: Pre-earnings coverage points to rising estimates, improving merchandising and the possibility of another earnings beat. Investors will focus on sales trends, margins, costs and management’s outlook, particularly because tough year-over-year comparisons could limit gains. Target pre-second-quarter earnings preview
• Negative Sentiment: A review of Target’s five-year performance underscores longer-term concerns: the stock has substantially lagged other major U.S. retailers, raising questions about its competitive position and sustainable growth prospects. Target's stock down 40 percent in five years

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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