Target (NYSE:TGT) Reaches New 52-Week High Following Dividend Announcement

Key Points

• Target shares hit a new 52-week high after the company announced a dividend increase. The stock traded as high as $135.91, helped by the dividend rising to $1.16 per share from $1.14.
• The new dividend will be paid on September 1 to shareholders of record on August 12, representing a $4.64 annualized payout and a 3.4% yield.
• Analysts remain mixed overall: several firms recently raised price targets, but Target’s consensus rating is still Hold with an average price target of $126.11.

Target Corporation (NYSE:TGT - Get Free Report)'s stock price reached a new 52-week high during trading on Friday following a dividend announcement from the company. The company traded as high as $135.91 and last traded at $134.8930, with a volume of 430322 shares. The stock had previously closed at $132.64.The newly announced dividend which will be paid on Tuesday, September 1st. Stockholders of record on Wednesday, August 12th will be given a dividend of $1.16 per share. This is a positive change from Target's previous quarterly dividend of $1.14. This represents a $4.64 annualized dividend and a dividend yield of 3.4%. The ex-dividend date of this dividend is Wednesday, August 12th. Target's payout ratio is currently 60.24%.

Analyst Ratings Changes

Several research firms recently commented on TGT. Oppenheimer boosted their price objective on shares of Target from $130.00 to $140.00 and gave the company an "outperform" rating in a research report on Wednesday, March 4th. Morgan Stanley increased their target price on Target from $125.00 to $145.00 and gave the stock an "overweight" rating in a report on Wednesday, March 4th. Wall Street Zen upgraded Target from a "hold" rating to a "buy" rating in a report on Saturday, June 6th. Citigroup upped their price objective on Target from $117.00 to $133.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. Finally, Wells Fargo & Company lifted their target price on Target from $135.00 to $140.00 and gave the company an "overweight" rating in a research report on Tuesday, May 12th. Eleven research analysts have rated the stock with a Buy rating, nineteen have issued a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, Target has a consensus rating of "Hold" and an average price target of $126.11.

Target Trading Up 2.1%

The firm has a market cap of $61.51 billion, a price-to-earnings ratio of 17.85, a P/E/G ratio of 2.50 and a beta of 1.00. The company has a debt-to-equity ratio of 0.87, a current ratio of 0.93 and a quick ratio of 0.30. The business has a 50-day moving average of $125.12 and a 200-day moving average of $113.34.

Target (NYSE:TGT - Get Free Report) last issued its quarterly earnings results on Wednesday, May 20th. The retailer reported $1.71 EPS for the quarter, beating the consensus estimate of $1.47 by $0.24. The firm had revenue of $25.44 billion during the quarter, compared to analysts' expectations of $24.66 billion. Target had a return on equity of 22.92% and a net margin of 3.24%.The business's quarterly revenue was up 6.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.30 earnings per share. Target has set its FY 2026 guidance at 7.500-8.500 EPS. Research analysts anticipate that Target Corporation will post 8.35 EPS for the current year.

Insiders Place Their Bets

In other news, CAO Matthew A. Liegel sold 2,053 shares of the business's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $117.19, for a total transaction of $240,591.07. Following the transaction, the chief accounting officer directly owned 12,143 shares in the company, valued at $1,423,038.17. The trade was a 14.46% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Cara A. Sylvester sold 10,000 shares of the company's stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $125.89, for a total transaction of $1,258,900.00. Following the completion of the sale, the insider directly owned 45,930 shares in the company, valued at approximately $5,782,127.70. The trade was a 17.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.13% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in TGT. Brighton Jones LLC raised its holdings in Target by 101.3% in the 4th quarter. Brighton Jones LLC now owns 6,080 shares of the retailer's stock valued at $822,000 after acquiring an additional 3,059 shares during the period. Woodline Partners LP grew its position in shares of Target by 39.9% in the first quarter. Woodline Partners LP now owns 38,712 shares of the retailer's stock valued at $4,040,000 after purchasing an additional 11,047 shares during the last quarter. NewEdge Advisors LLC grew its position in shares of Target by 22.8% in the second quarter. NewEdge Advisors LLC now owns 69,660 shares of the retailer's stock valued at $6,872,000 after purchasing an additional 12,948 shares during the last quarter. Sei Investments Co. increased its stake in shares of Target by 8.0% during the second quarter. Sei Investments Co. now owns 190,860 shares of the retailer's stock worth $18,832,000 after purchasing an additional 14,195 shares during the period. Finally, Treasurer of the State of North Carolina increased its stake 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 purchasing an additional 27,063 shares during the period. 79.73% of the stock is owned by institutional investors and hedge funds.

About Target

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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