Rakuten Investment Management Inc. Makes New $12.75 Million Investment in Target Corporation $TGT

Key Points

• Rakuten Investment Management acquired 81,522 Target shares in the third quarter, worth approximately $12.75 million; institutional investors collectively own 79.73% of the stock.
• Target reported quarterly EPS of $4.11, beating the $2.35 consensus, while revenue rose 5.3% year over year to $26.54 billion.
• Target declared a quarterly dividend of $1.16 per share, equivalent to an annualized yield of 2.8%; analysts’ consensus rating is “Hold,” with an average price target of $161.50.

Rakuten Investment Management Inc. acquired a new stake in shares of Target Corporation (NYSE:TGT - Free Report) during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 81,522 shares of the retailer's stock, valued at approximately $12,752,000.

A number of other institutional investors and hedge funds have also modified their holdings of TGT. BlackRock Inc. acquired a new stake in Target in the 2nd quarter worth about $5,054,604,000. Bank of New York Mellon Corp acquired a new position in shares of Target during the second quarter valued at approximately $831,466,000. Jupiter Topco LLC acquired a new position in shares of Target during the second quarter valued at approximately $320,006,000. Deutsche Bank AG purchased a new position in shares of Target in the second quarter valued at approximately $224,238,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Target in the second quarter valued at approximately $150,784,000. Hedge funds and other institutional investors own 79.73% of the company's stock.

Target Trading Up 5.7%

Shares of TGT stock opened at $163.26 on Thursday. The company has a current ratio of 0.99, a quick ratio of 0.36 and a debt-to-equity ratio of 0.80. Target Corporation has a twelve month low of $83.44 and a twelve month high of $170.75. The company's 50-day moving average price is $156.68 and its 200-day moving average price is $134.54. The stock has a market cap of $74.17 billion, a price-to-earnings ratio of 16.95, a PEG ratio of 2.86 and a beta of 0.94.

Target (NYSE:TGT - Get Free Report) last issued its earnings results on Wednesday, August 19th. The retailer reported $4.11 EPS for the quarter, topping analysts' consensus estimates of $2.35 by $1.76. Target had a net margin of 4.08% and a return on equity of 23.23%. The company had revenue of $26.54 billion for the quarter, compared to the consensus estimate of $26.13 billion. During the same period in the previous year, the firm earned $2.05 earnings per share. Target's quarterly revenue was up 5.3% compared to the same quarter last year. Target has set its FY 2026 guidance at 9.900-10.900 EPS. As a group, equities analysts predict that Target Corporation will post 8.91 earnings per share for the current year.

Target Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Wednesday, November 11th will be issued a dividend of $1.16 per share. The ex-dividend date is Tuesday, November 10th. This represents a $4.64 dividend on an annualized basis and a dividend yield of 2.8%. Target's dividend payout ratio (DPR) is currently 48.18%.

Analyst Upgrades and Downgrades

TGT has been the topic of several recent research reports. Barclays lifted their target price on shares of Target from $115.00 to $140.00 and gave the stock an "underweight" rating in a research note on Wednesday, August 19th. Deutsche Bank Aktiengesellschaft set a $150.00 target price on shares of Target and gave the company a "hold" rating in a research report on Thursday, August 20th. The Goldman Sachs Group reissued a "neutral" rating and issued a $161.00 price target (up from $127.00) on shares of Target in a research note on Friday, September 25th. Robert W. Baird set a $170.00 price target on shares of Target in a research report on Thursday, August 20th. Finally, Roth Capital reaffirmed a "neutral" rating and set a $142.00 price objective (up from $114.00) on shares of Target in a research note on Thursday, August 20th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, seventeen have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $161.50.

Insider Activity at Target

In other news, CAO Matthew Liegel sold 926 shares of Target stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $163.51, for a total transaction of $151,410.26. Following the sale, the chief accounting officer owned 12,266 shares of the company's stock, valued at approximately $2,005,613.66. The trade was a 7.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Melissa Kremer sold 15,500 shares of the company's stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $169.96, for a total value of $2,634,380.00. Following the completion of the transaction, the insider owned 56,981 shares in the company, valued at $9,684,490.76. This represents a 21.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.13% of the stock is currently owned by insiders.

Target Company Profile

Target Corporation is a U.S.-based general merchandise retailer that operates stores and digital shopping platforms under the Target name. The company sells a broad assortment of products, including apparel and accessories, beauty and household essentials, electronics, toys, groceries, home furnishings, and seasonal merchandise.

Target also offers services designed to support omnichannel shopping, including order pickup, Drive Up, same-day delivery, and shipping through its digital channels.

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