Smead Capital Management Inc. Has $167.54 Million Stock Holdings in Target Corporation $TGT

Key Points

• Smead Capital Management trimmed its Target stake by 6.4% in the fourth quarter, but still held 1.71 million shares worth about $167.5 million, making Target its 16th-largest holding.
• Target reported a stronger-than-expected quarter, with EPS of $1.71 and revenue of $25.44 billion topping estimates, while sales rose 6.7% year over year and the company raised its FY 2026 guidance.
• Sentiment around the stock is mixed: several analysts raised price targets after earnings, but at least one firm downgraded the shares, and the consensus rating remains Hold with an average price target of $125.93.

Smead Capital Management Inc. cut its position in shares of Target Corporation (NYSE:TGT - Free Report) by 6.4% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,713,932 shares of the retailer's stock after selling 116,499 shares during the quarter. Target accounts for 3.5% of Smead Capital Management Inc.'s portfolio, making the stock its 16th biggest holding. Smead Capital Management Inc. owned approximately 0.38% of Target worth $167,537,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also added to or reduced their stakes in TGT. First Trust Advisors LP boosted its holdings in Target by 10.9% during the third quarter. First Trust Advisors LP now owns 1,267,577 shares of the retailer's stock valued at $113,702,000 after purchasing an additional 124,371 shares in the last quarter. Grantham Mayo Van Otterloo & Co. LLC boosted its holdings in Target by 15.4% during the third quarter. Grantham Mayo Van Otterloo & Co. LLC now owns 342,487 shares of the retailer's stock valued at $30,721,000 after purchasing an additional 45,803 shares in the last quarter. Retirement Systems of Alabama acquired a new stake in Target during the third quarter valued at approximately $8,694,000. Mather Group LLC. boosted its holdings in Target by 7.5% during the fourth quarter. Mather Group LLC. now owns 155,222 shares of the retailer's stock valued at $15,173,000 after purchasing an additional 10,839 shares in the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. boosted its holdings in Target by 3.8% during the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 513,123 shares of the retailer's stock valued at $46,027,000 after purchasing an additional 18,777 shares in the last quarter. 79.73% of the stock is owned by institutional investors and hedge funds.

Target Stock Down 0.4%

Shares of TGT opened at $125.62 on Friday. The company has a market capitalization of $57.05 billion, a P/E ratio of 16.59, a PEG ratio of 3.60 and a beta of 1.01. The company has a debt-to-equity ratio of 0.87, a current ratio of 0.93 and a quick ratio of 0.36. Target Corporation has a one year low of $83.44 and a one year high of $133.10. The business's 50 day simple moving average is $122.49 and its 200-day simple moving average is $109.61.

Target (NYSE:TGT - Get Free Report) last announced its earnings results on Wednesday, May 20th. The retailer reported $1.71 EPS for the quarter, topping the consensus estimate of $1.47 by $0.24. The business had revenue of $25.44 billion for 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%.Target's revenue was up 6.7% compared to the same quarter last year. During the same period in the previous year, the business earned $1.30 EPS. Target has set its FY 2026 guidance at 7.500-8.500 EPS. As a group, sell-side analysts predict that Target Corporation will post 8.35 EPS for the current fiscal year.

Target Dividend Announcement

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

Target News Roundup

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

Insider Activity at Target

In other news, 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 transaction, the chief accounting officer directly 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.16% of the stock is owned by insiders.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Truist Financial lifted their price objective on Target from $123.00 to $130.00 and gave the company a "hold" rating in a report on Wednesday. BMO Capital Markets lifted their price objective on Target from $105.00 to $130.00 and gave the company a "market perform" rating in a report on Wednesday, March 4th. Wells Fargo & Company lifted their price objective on Target from $135.00 to $140.00 and gave the company an "overweight" rating in a report on Tuesday, May 12th. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $124.00 price objective on shares of Target in a report on Thursday. Finally, Robert W. Baird lifted their price objective on Target from $125.00 to $135.00 and gave the company a "neutral" rating in a report on Thursday. Eleven research analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $125.93.

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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