Franklin Resources Inc. Acquires 142,937 Shares of Target Corporation $TGT

Key Points

• Franklin Resources increased its stake in Target by 2.4% in the fourth quarter, buying 142,937 additional shares and bringing its total holding to 6.19 million shares worth about $605.5 million.
• Target recently reported better-than-expected quarterly results, posting EPS of $1.71 versus estimates of $1.47 and revenue of $25.44 billion versus $24.66 billion expected. The company also reaffirmed FY2026 EPS guidance of 7.50 to 8.50.
• Analysts remain cautious overall, with the stock carrying an average “Hold” rating and a consensus price target of $125.93. At the same time, Target is trading near $123.79 and continues to offer a quarterly dividend yielding about 3.7%.

Franklin Resources Inc. raised its holdings in Target Corporation (NYSE:TGT - Free Report) by 2.4% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 6,194,448 shares of the retailer's stock after purchasing an additional 142,937 shares during the period. Franklin Resources Inc. owned 1.37% of Target worth $605,507,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently modified their holdings of TGT. WFA of San Diego LLC purchased a new position in Target in the 2nd quarter valued at approximately $25,000. Global Wealth Strategies & Associates lifted its position in shares of Target by 192.0% during the fourth quarter. Global Wealth Strategies & Associates now owns 292 shares of the retailer's stock worth $29,000 after acquiring an additional 192 shares in the last quarter. Eagle Bay Advisors LLC bought a new position in shares of Target in the fourth quarter worth $30,000. Key Financial Inc grew its position in shares of Target by 77.4% in the third quarter. Key Financial Inc now owns 346 shares of the retailer's stock valued at $31,000 after purchasing an additional 151 shares in the last quarter. Finally, True Wealth Design LLC raised its stake 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 period. Institutional investors own 79.73% of the company's stock.

Insider Activity

In related news, insider Cara A. Sylvester sold 10,000 shares of the firm's stock in a transaction dated 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 transaction, the insider directly owned 45,930 shares of the company's stock, valued at approximately $5,782,127.70. This trade represents a 17.88% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CAO Matthew A. Liegel sold 2,053 shares of the business'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 value of $240,591.07. Following the completion of the sale, the chief accounting officer owned 12,143 shares of the company's stock, valued at $1,423,038.17. The trade was a 14.46% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.13% of the company's stock.

Analysts Set New Price Targets

Several research analysts have commented on the company. Piper Sandler raised their target price on Target from $121.00 to $127.00 and gave the stock a "neutral" rating in a research note on Thursday, May 21st. Barclays reissued an "underweight" rating on shares of Target in a report on Monday, June 1st. Evercore set a $130.00 price objective on shares of Target in a research note on Monday, May 18th. Mizuho set a $120.00 target price on shares of Target in a report on Thursday, March 5th. Finally, Citigroup raised their price target on shares of Target from $117.00 to $133.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. Eleven equities research 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. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $125.93.

Target Trading Up 1.0%

Shares of TGT opened at $123.79 on Tuesday. Target Corporation has a 1-year low of $83.44 and a 1-year high of $133.10. The company has a market capitalization of $56.22 billion, a P/E ratio of 16.35, a P/E/G ratio of 2.39 and a beta of 1.00. The company has a debt-to-equity ratio of 0.87, a current ratio of 0.93 and a quick ratio of 0.30. The firm's 50 day simple moving average is $124.57 and its 200 day simple moving average is $112.43.

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

Target Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 1st. Shareholders of record on Wednesday, May 13th were given a dividend of $1.14 per share. The ex-dividend date was Wednesday, May 13th. This represents a $4.56 dividend on an annualized basis and a yield of 3.7%. Target's dividend payout ratio (DPR) is presently 60.24%.

Target Company Profile

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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