Target (NYSE:TGT) Rating Lowered to Sell at Wall Street Zen

Key Points

• Target's stock was downgraded from a "hold" to a "sell" rating by Wall Street Zen, indicating a pessimistic outlook on the company's performance.
• Analysts have reduced Target's target prices significantly, with Guggenheim lowering it from $155.00 to $115.00 while Mizuho set a neutral rating at $88.00.
• Recent earnings reports showed a miss in EPS expectations, with Target reporting $1.30 per share against an estimated $1.65, alongside a revenue decline of 2.8% year-over-year.

Target (NYSE:TGT - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Saturday.

Other analysts also recently issued research reports about the stock. Guggenheim decreased their price target on shares of Target from $155.00 to $115.00 and set a "buy" rating for the company in a research note on Tuesday, May 27th. Piper Sandler reaffirmed a "neutral" rating on shares of Target in a research note on Tuesday, July 29th. Sanford C. Bernstein downgraded shares of Target from a "market perform" rating to an "underperform" rating and decreased their price target for the company from $97.00 to $82.00 in a research note on Monday, May 12th. Bank of America downgraded shares of Target from a "buy" rating to a "neutral" rating and decreased their price target for the company from $145.00 to $105.00 in a research note on Thursday, May 22nd. Finally, JPMorgan Chase & Co. lifted their price target on shares of Target from $105.00 to $109.00 and gave the company a "neutral" rating in a research note on Thursday, May 22nd. Three investment analysts have rated the stock with a sell rating, twenty-three have issued a hold rating and ten have given a buy rating to the company. According to data from MarketBeat.com, Target currently has a consensus rating of "Hold" and an average price target of $115.26.

Target Trading Up 2.3%

NYSE TGT traded up $2.44 during trading on Friday, hitting $106.45. The stock had a trading volume of 4,064,527 shares, compared to its average volume of 6,899,143. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.25 and a current ratio of 0.94. The stock has a market capitalization of $48.37 billion, a price-to-earnings ratio of 11.69, a P/E/G ratio of 3.01 and a beta of 1.22. Target has a one year low of $87.35 and a one year high of $167.40. The stock has a 50 day simple moving average of $101.01 and a 200 day simple moving average of $105.64.

Target (NYSE:TGT - Get Free Report) last announced its quarterly earnings data on Wednesday, May 21st. The retailer reported $1.30 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.65 by ($0.35). The firm had revenue of $24.20 billion during the quarter, compared to the consensus estimate of $24.54 billion. Target had a return on equity of 25.59% and a net margin of 3.95%. The firm's revenue for the quarter was down 2.8% on a year-over-year basis. During the same period in the previous year, the business earned $2.03 EPS. Sell-side analysts predict that Target will post 8.69 earnings per share for the current year.

Insider Buying and Selling

In other Target news, insider Brian C. Cornell sold 45,000 shares of the company's stock in a transaction on Wednesday, May 28th. The shares were sold at an average price of $96.18, for a total value of $4,328,100.00. Following the sale, the insider directly owned 246,453 shares of the company's stock, valued at approximately $23,703,849.54. This represents a 15.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.16% of the company's stock.

Institutional Investors Weigh In On Target

Several hedge funds have recently added to or reduced their stakes in TGT. Raleigh Capital Management Inc. boosted its holdings in Target by 63.4% in the second quarter. Raleigh Capital Management Inc. now owns 263 shares of the retailer's stock valued at $26,000 after purchasing an additional 102 shares during the last quarter. Kozak & Associates Inc. boosted its holdings in Target by 2,530.0% in the second quarter. Kozak & Associates Inc. now owns 263 shares of the retailer's stock valued at $27,000 after purchasing an additional 253 shares during the last quarter. Bernard Wealth Management Corp. purchased a new stake in Target in the fourth quarter valued at $29,000. Investment Research & Advisory Group Inc. acquired a new position in shares of Target in the second quarter worth about $29,000. Finally, Global Assets Advisory LLC purchased a new stake in shares of Target during the 2nd quarter worth about $31,000. 79.73% of the stock is owned by hedge funds and other institutional investors.

About Target

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.