The TJX Companies, Inc. $TJX Stake Boosted by Capital International Investors

Key Points

• Capital International Investors increased its TJX stake by 2.0% in the fourth quarter, now holding about 15.99 million shares valued at roughly $2.46 billion.
• TJX reported a strong fiscal Q1, with 6% comparable sales growth and 29% EPS growth, and also raised guidance after beating analysts’ revenue and earnings estimates.
• Despite the upbeat results and bullish analyst sentiment, top executives sold shares recently, and the stock is trading near its 52-week high around $160.69.

Capital International Investors grew its stake in shares of The TJX Companies, Inc. (NYSE:TJX - Free Report) by 2.0% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 15,986,573 shares of the apparel and home fashions retailer's stock after purchasing an additional 308,408 shares during the quarter. Capital International Investors owned approximately 1.44% of TJX Companies worth $2,455,911,000 as of its most recent SEC filing.

Other institutional investors also recently made changes to their positions in the company. Vanguard Group Inc. grew its holdings in TJX Companies by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 102,733,668 shares of the apparel and home fashions retailer's stock worth $15,780,919,000 after buying an additional 771,882 shares in the last quarter. Geode Capital Management LLC grew its holdings in TJX Companies by 2.6% in the 4th quarter. Geode Capital Management LLC now owns 27,011,104 shares of the apparel and home fashions retailer's stock worth $4,134,174,000 after buying an additional 673,690 shares in the last quarter. Norges Bank bought a new position in TJX Companies in the 4th quarter worth approximately $2,211,975,000. Ameriprise Financial Inc. grew its holdings in TJX Companies by 3.0% in the 3rd quarter. Ameriprise Financial Inc. now owns 13,391,533 shares of the apparel and home fashions retailer's stock worth $1,939,435,000 after buying an additional 392,097 shares in the last quarter. Finally, Amundi grew its holdings in TJX Companies by 22.1% in the 3rd quarter. Amundi now owns 9,725,542 shares of the apparel and home fashions retailer's stock worth $1,391,822,000 after buying an additional 1,761,281 shares in the last quarter. 91.09% of the stock is owned by institutional investors.

Insiders Place Their Bets

In other news, CFO John Klinger sold 6,235 shares of the stock in a transaction on Friday, June 5th. The stock was sold at an average price of $160.77, for a total transaction of $1,002,400.95. Following the completion of the sale, the chief financial officer owned 64,257 shares in the company, valued at approximately $10,330,597.89. This represents a 8.84% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Ernie Herrman sold 10,002 shares of the stock in a transaction on Friday, June 5th. The shares were sold at an average price of $160.68, for a total value of $1,607,121.36. Following the sale, the chief executive officer owned 514,848 shares of the company's stock, valued at $82,725,776.64. This trade represents a 1.91% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 73,786 shares of company stock valued at $11,695,268 in the last quarter. Insiders own 0.13% of the company's stock.

TJX Companies News Roundup

Here are the key news stories impacting TJX Companies this week:

• Positive Sentiment: TJX posted strong fiscal Q1 results, including 6% comparable sales growth and 29% EPS growth, and raised guidance, supporting the stock’s recent strength.
• Positive Sentiment: Analysts remain constructive on The TJX Companies, Inc., with a consensus “Buy” view and continued praise for its growth and defensive retail appeal.
• Positive Sentiment: UBS singled out TJX as a preferred consumer stock, citing its ability to grow, deliver strong returns, and exceed expectations.
• Neutral Sentiment: Recent stock gains have pushed TJX near its 52-week high, which may attract both momentum buyers and some profit-taking.
• Negative Sentiment: CEO Ernie Herrman and CFO John Klinger sold shares this week, which may weigh on sentiment even though the transactions were disclosed as routine filings.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the company. Evercore reissued an "outperform" rating and issued a $175.00 price objective on shares of TJX Companies in a report on Thursday, May 21st. Truist Financial set a $190.00 price objective on TJX Companies and gave the stock a "buy" rating in a report on Thursday, May 21st. Citigroup reissued a "buy" rating and issued a $182.00 price objective (up from $168.00) on shares of TJX Companies in a report on Thursday, May 21st. Telsey Advisory Group increased their price objective on TJX Companies from $175.00 to $185.00 and gave the stock an "outperform" rating in a report on Thursday, May 21st. Finally, UBS Group reissued a "neutral" rating and issued a $197.00 price objective (up from $193.00) on shares of TJX Companies in a report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $174.58.

TJX Companies Stock Performance

TJX opened at $160.69 on Friday. The company has a market capitalization of $177.51 billion, a price-to-earnings ratio of 31.20, a price-to-earnings-growth ratio of 3.49 and a beta of 0.62. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.14 and a quick ratio of 0.54. The TJX Companies, Inc. has a 1-year low of $119.84 and a 1-year high of $165.82. The business has a 50 day moving average price of $156.84 and a two-hundred day moving average price of $155.43.

TJX Companies (NYSE:TJX - Get Free Report) last released its earnings results on Wednesday, May 20th. The apparel and home fashions retailer reported $1.19 earnings per share for the quarter, topping analysts' consensus estimates of $1.02 by $0.17. The firm had revenue of $14.32 billion during the quarter, compared to the consensus estimate of $14.02 billion. TJX Companies had a return on equity of 57.92% and a net margin of 9.40%.The firm's revenue for the quarter was up 9.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.92 earnings per share. TJX Companies has set its FY 2027 guidance at 5.080-5.150 EPS and its Q2 2027 guidance at 1.150-1.170 EPS. Research analysts predict that The TJX Companies, Inc. will post 5.15 EPS for the current fiscal year.

TJX Companies Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Thursday, May 14th were given a dividend of $0.48 per share. This is a boost from TJX Companies's previous quarterly dividend of $0.43. The ex-dividend date was Thursday, May 14th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 1.2%. TJX Companies's payout ratio is currently 37.28%.

TJX Companies Profile

TJX Companies, Inc is a leading off-price retailer of apparel, footwear, home fashions and other consumer goods. The company operates multiple retail concepts that offer discounted brand-name and designer merchandise, including well-known banners such as T.J. Maxx and Marshalls in the United States, HomeGoods for home furnishings, TK Maxx in parts of Europe, and Winners and Homesense in Canada. Merchandise categories span women's, men's and children's apparel, accessories, beauty, home décor, kitchenware and small furniture, with frequent changes in assortment that create a “treasure-hunt” shopping experience for consumers.

The company's business model centers on opportunistic buying, purchasing excess, irregular or out-of-season inventory from manufacturers, department stores and other suppliers, and passing savings to customers through lower prices.

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