Target Corporation $TGT Stake Lessened by Equity Investment Corp

Key Points

• Equity Investment Corp cut its Target stake by 25.7% in the third quarter, selling 262,178 shares. It still held 757,198 shares worth about $118.6 million.
• Target reported quarterly EPS of $4.11, beating the $2.35 consensus, while revenue rose 5.3% year over year to $26.54 billion. The company declared a $1.16 quarterly dividend, equivalent to a 2.9% yield.
• Analysts’ consensus rating was Hold, with an average price target of $161.70; shares opened at $161.82.

Equity Investment Corp reduced its stake in Target Corporation (NYSE:TGT - Free Report) by 25.7% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 757,198 shares of the retailer's stock after selling 262,178 shares during the period. Target accounts for 1.6% of Equity Investment Corp's portfolio, making the stock its 21st largest position. Equity Investment Corp owned approximately 0.17% of Target worth $118,645,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors also recently bought and sold shares of TGT. BlackRock Inc. bought a new stake in Target during the 2nd quarter valued at approximately $5,054,604,000. Bank of New York Mellon Corp purchased a new position in shares of Target during the 2nd quarter worth approximately $831,466,000. Dimensional Fund Advisors LP grew its holdings in shares of Target by 8.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 5,413,840 shares of the retailer's stock worth $656,091,000 after acquiring an additional 411,608 shares during the period. Bank of America Corp DE grew its holdings in shares of Target by 1.8% during the 2nd quarter. Bank of America Corp DE now owns 4,575,880 shares of the retailer's stock worth $597,656,000 after acquiring an additional 82,268 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Target by 12.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,514,522 shares of the retailer's stock worth $589,642,000 after acquiring an additional 514,155 shares in the last quarter. 79.73% of the stock is owned by institutional investors.

Target Price Performance

Shares of TGT opened at $161.82 on Wednesday. Target Corporation has a fifty-two week low of $83.44 and a fifty-two week high of $170.75. The firm's 50-day simple moving average is $156.48 and its two-hundred day simple moving average is $135.60. The stock has a market cap of $73.51 billion, a PE ratio of 16.80, a price-to-earnings-growth ratio of 3.07 and a beta of 0.94. The company has a debt-to-equity ratio of 0.80, a quick ratio of 0.36 and a current ratio of 0.99.

Target (NYSE:TGT - Get Free Report) last released its earnings results on Wednesday, August 19th. The retailer reported $4.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.35 by $1.76. Target had a net margin of 4.08% and a return on equity of 23.23%. The firm had revenue of $26.54 billion during the quarter, compared to analyst estimates of $26.13 billion. During the same period last year, the business earned $2.05 earnings per share. The business's revenue was up 5.3% on a year-over-year basis. Target has set its FY 2026 guidance at 9.900-10.900 EPS. Analysts anticipate that Target Corporation will post 8.91 earnings per share for the current fiscal year.

Target Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Wednesday, November 11th will be paid a $1.16 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $4.64 annualized dividend and a dividend yield of 2.9%. Target's dividend payout ratio is presently 48.18%.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. Weiss Ratings upgraded Target from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Robert W. Baird set a $170.00 price target on Target in a research report on Thursday, August 20th. Wells Fargo & Company upped their price target on Target from $165.00 to $185.00 and gave the stock an "overweight" rating in a research note on Thursday, August 20th. Morgan Stanley reiterated an "overweight" rating and issued a $150.00 price objective (up from $145.00) on shares of Target in a report on Thursday, August 20th. Finally, Truist Financial increased their price objective on Target from $147.00 to $167.00 and gave the stock a "hold" rating in a report on Thursday, August 20th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, seventeen have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $161.70.

Insider Buying and Selling

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

About Target

Target Corporation is a U.S. general merchandise retailer that sells products through its stores and digital channels. Its assortment includes apparel and accessories, beauty products, home goods, groceries, electronics, toys, and household essentials, along with merchandise from national brands and Target-owned brands. The company also offers services such as in-store and curbside order pickup and same-day delivery in eligible areas. Target serves customers across the United States. The company traces its history to the Dayton Dry Goods Company, founded in Minneapolis in 1902.

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