Gateway Investment Advisers LLC Boosts Stock Position in Target Corporation $TGT

Key Points

• Gateway Investment Advisers LLC increased its stake in Target Corporation by 2.7%, acquiring an additional 3,620 shares during the second quarter, bringing their total holdings to 135,439 shares valued at approximately $13.36 million.
• Target's recent quarterly earnings exceeded estimates, reporting $2.05 EPS on revenue of $24.99 billion, despite a year-over-year revenue decline of 0.9%.
• Current Wall Street sentiment is mixed, with ten analysts rating Target as a Buy, twenty-three as a Hold, and three as a Sell, resulting in an average price target of $113.74.

Gateway Investment Advisers LLC raised its position in Target Corporation (NYSE:TGT - Free Report) by 2.7% in the second quarter, according to its most recent disclosure with the SEC. The firm owned 135,439 shares of the retailer's stock after acquiring an additional 3,620 shares during the period. Gateway Investment Advisers LLC's holdings in Target were worth $13,361,000 as of its most recent filing with the SEC.

Other hedge funds have also recently added to or reduced their stakes in the company. Bernard Wealth Management Corp. bought a new position in shares of Target in the fourth quarter valued at approximately $29,000. WPG Advisers LLC bought a new position in shares of Target in the first quarter valued at approximately $32,000. 1248 Management LLC bought a new position in shares of Target in the first quarter valued at approximately $38,000. Heck Capital Advisors LLC bought a new position in shares of Target in the fourth quarter valued at approximately $40,000. Finally, Atwood & Palmer Inc. lifted its holdings in shares of Target by 951.4% in the first quarter. Atwood & Palmer Inc. now owns 389 shares of the retailer's stock valued at $41,000 after purchasing an additional 352 shares in the last quarter. Institutional investors and hedge funds own 79.73% of the company's stock.

Target Price Performance

Target stock traded down $1.30 during midday trading on Friday, hitting $88.12. 13,274,029 shares of the company's stock were exchanged, compared to its average volume of 7,472,747. Target Corporation has a 52-week low of $87.35 and a 52-week high of $161.50. The stock has a 50-day moving average price of $99.10 and a two-hundred day moving average price of $98.89. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.32 and a current ratio of 0.99. The company has a market cap of $40.04 billion, a P/E ratio of 10.27, a PEG ratio of 2.54 and a beta of 1.16.

Target (NYSE:TGT - Get Free Report) last posted its earnings results on Wednesday, August 20th. The retailer reported $2.05 EPS for the quarter, topping the consensus estimate of $2.04 by $0.01. Target had a return on equity of 23.43% and a net margin of 3.72%.The business had revenue of $24.99 billion during the quarter, compared to analysts' expectations of $24.84 billion. During the same period in the previous year, the business earned $2.57 earnings per share. The firm's revenue was down .9% on a year-over-year basis. Target has set its FY 2025 guidance at 7.000-9.000 EPS. On average, equities research analysts forecast that Target Corporation will post 8.69 earnings per share for the current year.

Target Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 1st. Investors of record on Wednesday, November 12th will be given a dividend of $1.14 per share. The ex-dividend date is Wednesday, November 12th. This is a positive change from Target's previous quarterly dividend of $1.12. This represents a $4.56 annualized dividend and a yield of 5.2%. Target's dividend payout ratio (DPR) is presently 53.15%.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Zacks Research upgraded Target from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 19th. Piper Sandler restated a "neutral" rating on shares of Target in a report on Tuesday, July 29th. Jefferies Financial Group dropped their target price on Target from $120.00 to $115.00 and set a "buy" rating on the stock in a report on Wednesday, August 20th. Barclays reiterated an "underweight" rating and set a $91.00 price target on shares of Target in a report on Monday, July 21st. Finally, Wolfe Research initiated coverage on Target in a report on Thursday. They set an "underperform" rating and a $80.00 price target on the stock. Ten equities research analysts have rated the stock with a Buy rating, twenty-three have assigned a Hold rating and four have given a Sell rating to the company. According to MarketBeat, Target presently has a consensus rating of "Hold" and a consensus target price of $112.69.

About Target

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.