Target (NYSE:TGT) Issues Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Target reported an earnings per share (EPS) of $2.05, beating expectations by $0.01, despite a 0.9% decline in revenue compared to the same quarter last year.
• The company announced a quarterly dividend of $1.12 per share, resulting in an annualized dividend yield of 4.2%.
• Target has updated its fiscal year 2025 guidance to a projected EPS range of $7.00 to $9.00.

Target (NYSE:TGT - Get Free Report) issued its earnings results on Wednesday. The retailer reported $2.05 EPS for the quarter, beating analysts' consensus estimates of $2.04 by $0.01, Zacks reports. Target had a return on equity of 25.59% and a net margin of 3.95%.The business had revenue of $24.99 billion during the quarter, compared to analyst estimates of $24.84 billion. During the same period in the previous year, the company posted $2.57 EPS. The firm's revenue was down .9% compared to the same quarter last year. Target updated its FY 2025 guidance to 7.000-9.000 EPS.

Target Stock Performance

TGT stock opened at $105.4440 on Wednesday. The firm has a market cap of $47.91 billion, a PE ratio of 11.59, a P/E/G ratio of 3.03 and a beta of 1.22. The company has a quick ratio of 0.25, a current ratio of 0.94 and a debt-to-equity ratio of 0.96. The business has a 50 day moving average of $102.02 and a 200-day moving average of $104.40. Target has a 12-month low of $87.35 and a 12-month high of $167.40.

Target Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 1st. Stockholders of record on Wednesday, August 13th will be issued a $1.12 dividend. The ex-dividend date of this dividend is Wednesday, August 13th. This represents a $4.48 annualized dividend and a dividend yield of 4.2%. Target's dividend payout ratio is currently 50.11%.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the company. Morgan Stanley decreased their target price on Target from $160.00 to $112.00 and set an "overweight" rating for the company in a research report on Thursday, May 22nd. JPMorgan Chase & Co. boosted their target price on Target from $105.00 to $109.00 and gave the company a "neutral" rating in a research report on Thursday, May 22nd. BMO Capital Markets decreased their target price on Target from $100.00 to $95.00 and set a "market perform" rating for the company in a research report on Thursday, May 22nd. Wedbush reaffirmed an "outperform" rating on shares of Target in a research report on Thursday, July 17th. Finally, Evercore ISI boosted their price objective on Target from $104.00 to $108.00 and gave the stock an "in-line" rating in a report on Tuesday, August 12th. Ten investment analysts have rated the stock with a Buy rating, twenty-two have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $115.42.

Insider Activity

In related news, insider Brian C. Cornell sold 45,000 shares of the company's stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $96.18, for a total value of $4,328,100.00. Following the transaction, the insider owned 246,453 shares in the company, 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 is accessible through this link. 0.16% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Target

Several institutional investors have recently bought and sold shares of the company. Ameriprise Financial Inc. lifted its stake in Target by 17.1% in the second quarter. Ameriprise Financial Inc. now owns 3,162,050 shares of the retailer's stock valued at $311,911,000 after purchasing an additional 461,495 shares during the last quarter. Smead Capital Management Inc. lifted its position in shares of Target by 20.4% during the second quarter. Smead Capital Management Inc. now owns 1,973,113 shares of the retailer's stock worth $194,648,000 after acquiring an additional 334,817 shares in the last quarter. Alliancebernstein L.P. lifted its position in shares of Target by 2.8% during the second quarter. Alliancebernstein L.P. now owns 530,890 shares of the retailer's stock worth $52,372,000 after acquiring an additional 14,676 shares in the last quarter. Corient Private Wealth LLC lifted its position in shares of Target by 45.0% during the second quarter. Corient Private Wealth LLC now owns 407,197 shares of the retailer's stock worth $40,178,000 after acquiring an additional 126,408 shares in the last quarter. Finally, Treasurer of the State of North Carolina lifted its position in shares of Target by 11.0% during the second quarter. Treasurer of the State of North Carolina now owns 272,787 shares of the retailer's stock worth $26,910,000 after acquiring an additional 27,063 shares in the last quarter. Hedge funds and other institutional investors own 79.73% of the company's stock.

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.

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