Legato Capital Management LLC Takes $2.33 Million Position in Target Corporation $TGT

Key Points

• Legato Capital Management opened a new position in Target, buying 23,880 shares worth about $2.33 million in the fourth quarter.
• Institutional ownership in Target remains high at 79.73%, with major investors like Vanguard and State Street also increasing their stakes recently.
• Analysts are mixed on Target after recent updates: several raised price targets following the company’s strong earnings, but the overall consensus remains Hold with an average target price of $125.93.

Legato Capital Management LLC bought a new stake in shares of Target Corporation (NYSE:TGT - Free Report) in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 23,880 shares of the retailer's stock, valued at approximately $2,334,000.

A number of other institutional investors have also recently modified their holdings of TGT. Vanguard Group Inc. lifted its position in shares of Target by 12.6% during the 3rd quarter. Vanguard Group Inc. now owns 57,925,898 shares of the retailer's stock valued at $5,195,953,000 after acquiring an additional 6,481,560 shares during the period. State Street Corp lifted its position in shares of Target by 2.5% during the 3rd quarter. State Street Corp now owns 37,648,065 shares of the retailer's stock valued at $3,377,031,000 after acquiring an additional 911,964 shares during the period. Amundi lifted its position in shares of Target by 38.6% during the 3rd quarter. Amundi now owns 1,913,883 shares of the retailer's stock worth $170,278,000 after buying an additional 533,416 shares during the last quarter. Ameriprise Financial Inc. lifted its position in shares of Target by 17.1% during the 2nd quarter. Ameriprise Financial Inc. now owns 3,162,050 shares of the retailer's stock worth $311,911,000 after buying an additional 461,495 shares during the last quarter. Finally, Caisse de depot et placement du Quebec lifted its position in shares of Target by 1,593.8% during the 3rd quarter. Caisse de depot et placement du Quebec now owns 439,839 shares of the retailer's stock worth $39,454,000 after buying an additional 413,871 shares during the last quarter. 79.73% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several brokerages recently weighed in on TGT. Oppenheimer upped their price objective on Target from $130.00 to $140.00 and gave the stock an "outperform" rating in a research report on Wednesday, March 4th. Barclays upped their price objective on Target from $108.00 to $115.00 and gave the stock an "underweight" rating in a research report on Tuesday, May 12th. Piper Sandler upped their price objective on Target from $121.00 to $127.00 and gave the stock a "neutral" rating in a research report on Thursday. Weiss Ratings restated a "hold (c)" rating on shares of Target in a research report on Monday, May 4th. Finally, DA Davidson upped their price objective on Target from $140.00 to $155.00 and gave the stock a "buy" rating in a research report on Thursday. Eleven research analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $125.93.

Trending Headlines about Target

Here are the key news stories impacting Target this week:

• Positive Sentiment: Target’s first-quarter earnings beat expectations, with EPS of $1.71 versus $1.47 expected and revenue of $25.44 billion topping estimates. Management also said the results validate its refreshed strategy, citing 6.7% sales growth and 4.4% traffic growth, while raising its outlook. Article: TGT Q1 Earnings Call Highlights Early Strategy Gains
• Positive Sentiment: Several Wall Street firms raised their price targets after the earnings report, including DA Davidson to $155 from $140 with a buy rating, Telsey Advisory Group to $150 from $148 with an outperform rating, and Robert W. Baird to $135 from $125. These upgrades suggest analysts see more upside in Target’s recovery. Article: Analyst price target increases for Target
• Neutral Sentiment: Additional commentary highlighted Target’s long-term turnaround potential, with one analysis asking whether the stock could reach $175 by 2027, but the piece was largely speculative rather than based on a new fundamental catalyst. Article: Prediction: Can Target Stock Reach $175 by 2027?
• Negative Sentiment: Not all the news was upbeat: Freedom Capital downgraded Target to hold from strong-buy, and some recent articles warned that competition from Walmart and Costco, plus concerns about consumer sentiment, could pressure the turnaround if spending weakens. Article: Target downgrade and cautionary commentary

Target Price Performance

Target stock opened at $125.62 on Friday. The company has a current ratio of 0.93, a quick ratio of 0.36 and a debt-to-equity ratio of 0.87. The company has a market capitalization of $57.05 billion, a PE ratio of 16.59, a P/E/G ratio of 3.60 and a beta of 1.01. Target Corporation has a 12 month low of $83.44 and a 12 month high of $133.10. The stock has a 50-day moving average price of $122.49 and a two-hundred day moving average price of $109.61.

Target (NYSE:TGT - Get Free Report) last posted its earnings results on Wednesday, May 20th. The retailer reported $1.71 EPS 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 return on equity of 22.92% and a net margin of 3.24%.The business's quarterly revenue was up 6.7% on a year-over-year basis. During the same period last year, the company earned $1.30 earnings per share. Target has set its FY 2026 guidance at 7.500-8.500 EPS. Analysts expect that Target Corporation will post 8.35 EPS for the current year.

Target Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Stockholders of record on Wednesday, May 13th will be paid a $1.14 dividend. The ex-dividend date of this dividend is Wednesday, May 13th. This represents a $4.56 annualized dividend and a dividend yield of 3.6%. Target's dividend payout ratio is presently 60.24%.

Insider Buying and Selling at Target

In other news, CAO Matthew A. Liegel sold 2,053 shares of the stock in a transaction dated 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 approximately $1,423,038.17. This represents a 14.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.16% of the company's stock.

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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