Trust Co. of Vermont Takes Position in Target Corporation $TGT

Key Points

• Trust Co. of Vermont bought 12,863 Target shares worth approximately $1.68 million during the second quarter, while institutional investors collectively own 79.73% of the retailer.
• Target’s latest quarterly results exceeded expectations, with EPS of $1.71 versus the $1.47 consensus and revenue of $25.44 billion. The company also raised its quarterly dividend to $1.16 per share, implying a 3.0% yield.
• Investor sentiment remains mixed: DA Davidson raised its price target to $170, but the overall analyst consensus remains “Hold” with a $143.85 target. Upcoming second-quarter earnings and Target’s weaker five-year stock performance are key areas of focus.

Trust Co. of Vermont bought a new position in Target Corporation (NYSE:TGT - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 12,863 shares of the retailer's stock, valued at approximately $1,680,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. WFA of San Diego LLC purchased a new stake in shares of Target during the 2nd quarter worth approximately $25,000. Jessup Wealth Management Inc purchased a new stake in Target during the fourth quarter valued at $25,000. Altshuler Shaham Ltd bought a new position in Target during the fourth quarter valued at $26,000. MidFirst Bank bought a new position in Target during the fourth quarter valued at $31,000. Finally, Capital Advisors Ltd. LLC grew its stake in shares of Target by 245.6% in the 1st quarter. Capital Advisors Ltd. LLC now owns 273 shares of the retailer's stock worth $33,000 after buying an additional 194 shares in the last quarter. 79.73% of the stock is owned by institutional investors.

Key Headlines Impacting Target

Here are the key news stories impacting Target this week:

• Positive Sentiment: DA Davidson raised its price target on Target from $155 to $170 and reiterated a “buy” rating, implying additional upside from recent trading levels. Target price target raised by DA Davidson
• Positive Sentiment: Analysts are highlighting Target’s dividend appeal, which may support demand from income-oriented investors while the stock trades at a valuation below some retail peers. Why Target is a great dividend stock right now
• Neutral Sentiment: Target is scheduled to report second-quarter earnings before the market opens on Wednesday, August 19, followed by a 7:00 a.m. conference call. The event is the immediate catalyst for the stock and could produce significant volatility. Target second-quarter earnings conference call
• Neutral Sentiment: Pre-earnings coverage points to rising estimates, improving merchandising and the possibility of another earnings beat. Investors will focus on sales trends, margins, costs and management’s outlook, particularly because tough year-over-year comparisons could limit gains. Target pre-second-quarter earnings preview
• Negative Sentiment: A review of Target’s five-year performance underscores longer-term concerns: the stock has substantially lagged other major U.S. retailers, raising questions about its competitive position and sustainable growth prospects. Target's stock down 40 percent in five years

Insider Transactions at Target

In other news, insider Cara A. Sylvester sold 10,000 shares of Target stock in a transaction on Friday, May 29th. The stock was sold at an average price of $125.89, for a total value of $1,258,900.00. Following the transaction, the insider directly owned 45,930 shares in the company, valued at approximately $5,782,127.70. This trade represents a 17.88% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.13% of the company's stock.

Target Price Performance

Shares of TGT opened at $152.63 on Wednesday. The company has a 50 day moving average price of $139.08 and a 200-day moving average price of $126.98. Target Corporation has a fifty-two week low of $83.44 and a fifty-two week high of $156.47. The stock has a market capitalization of $69.32 billion, a PE ratio of 20.16, a PEG ratio of 2.51 and a beta of 0.96. The company has a debt-to-equity ratio of 0.87, a quick ratio of 0.30 and a current ratio of 0.93.

Target (NYSE:TGT - Get Free Report) last released its quarterly earnings data on Wednesday, May 20th. The retailer reported $1.71 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.47 by $0.24. The firm had revenue of $25.44 billion for the quarter, compared to the consensus estimate of $24.66 billion. Target had a net margin of 3.24% and a return on equity of 22.92%. The company's quarterly revenue was up 6.7% on a year-over-year basis. During the same period last year, the firm earned $1.30 earnings per share. Equities analysts predict that Target Corporation will post 8.43 earnings per share for the current fiscal year.

Target Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Wednesday, August 12th will be given a dividend of $1.16 per share. This is a boost from Target's previous quarterly dividend of $1.14. The ex-dividend date of this dividend is Wednesday, August 12th. This represents a $4.64 annualized dividend and a yield of 3.0%. Target's payout ratio is 61.29%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on TGT. Zacks Research upgraded Target from a "hold" rating to a "strong-buy" rating in a report on Monday, July 13th. The Goldman Sachs Group restated a "neutral" rating on shares of Target in a research note on Thursday, June 11th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $140.00 target price on shares of Target in a research report on Friday. Roth Capital reaffirmed a "neutral" rating and set a $114.00 price target on shares of Target in a research note on Friday, May 22nd. Finally, Piper Sandler boosted their price target on Target from $127.00 to $146.00 and gave the company a "neutral" rating in a report on Friday. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, sixteen have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $143.85.

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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