Smead Capital Management Inc. Grows Stock Holdings in Target Corporation $TGT

Key Points

• Smead Capital Management Inc. has increased its stake in Target Corporation by 9.9%, now holding 1,638,296 shares valued at approximately $170.97 million.
• Target recently announced a quarterly dividend of $1.12, representing a 4.6% annualized yield, with the ex-dividend date on August 13th.
• The company's latest earnings report showed an EPS of $2.05, exceeding analysts' expectations, albeit with a 0.9% decline in revenue year-over-year.

Smead Capital Management Inc. boosted its position in Target Corporation (NYSE:TGT - Free Report) by 9.9% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 1,638,296 shares of the retailer's stock after buying an additional 147,139 shares during the period. Target makes up approximately 2.9% of Smead Capital Management Inc.'s investment portfolio, making the stock its 18th largest holding. Smead Capital Management Inc. owned 0.36% of Target worth $170,973,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently bought and sold shares of the business. Okabena Investment Services Inc. lifted its stake in Target by 20.8% during the 1st quarter. Okabena Investment Services Inc. now owns 201,090 shares of the retailer's stock valued at $20,986,000 after acquiring an additional 34,588 shares during the period. Truvestments Capital LLC raised its holdings in shares of Target by 21.4% during the first quarter. Truvestments Capital LLC now owns 606 shares of the retailer's stock worth $63,000 after purchasing an additional 107 shares during the last quarter. CreativeOne Wealth LLC lifted its position in Target by 27.9% during the first quarter. CreativeOne Wealth LLC now owns 6,961 shares of the retailer's stock valued at $726,000 after purchasing an additional 1,519 shares during the period. FORA Capital LLC purchased a new stake in Target in the first quarter valued at $13,714,000. Finally, Widmann Financial Services Inc. acquired a new stake in Target during the 1st quarter worth about $228,000. Institutional investors and hedge funds own 79.73% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. Barclays reissued an "underweight" rating and issued a $91.00 price objective on shares of Target in a report on Monday, July 21st. Guggenheim reissued a "buy" rating and issued a $115.00 price target on shares of Target in a report on Thursday, August 21st. Zacks Research raised shares of Target from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 19th. UBS Group decreased their target price on shares of Target from $135.00 to $130.00 and set a "buy" rating for the company in a research note on Thursday, August 21st. Finally, Citigroup raised their price target on shares of Target from $94.00 to $100.00 and gave the company a "neutral" rating in a research report on Friday, August 22nd. Ten analysts have rated the stock with a Buy rating, twenty-three have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $113.74.

Target Price Performance

Shares of TGT traded down $3.45 during mid-day trading on Tuesday, hitting $92.53. 10,864,318 shares of the company were exchanged, compared to its average volume of 7,136,333. The stock has a market cap of $42.04 billion, a price-to-earnings ratio of 10.78, a price-to-earnings-growth ratio of 2.77 and a beta of 1.16. Target Corporation has a 1-year low of $87.35 and a 1-year high of $161.50. The company has a 50 day moving average of $102.16 and a 200-day moving average of $102.03. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.32 and a current ratio of 0.99.

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

Target Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, September 1st. Shareholders of record on Wednesday, August 13th were paid a dividend of $1.12 per share. This represents a $4.48 annualized dividend and a yield of 4.8%. The ex-dividend date of this dividend was Wednesday, August 13th. Target's payout ratio is 53.15%.

Target Company Profile

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.