TJX Companies (NYSE:TJX) Lowered to "Hold" Rating by Erste Group Bank

Key Points

• Erste Group Bank downgraded TJX Companies from “buy” to “hold,” even though the overall analyst view remains positive with a consensus “buy” rating and an average price target of $176.89.
• TJX reported strong quarterly results, beating estimates with EPS of $1.19 versus $1.02 expected and revenue of $14.32 billion, up 9.2% year over year.
• Insider selling was notable, with CFO John Klinger and Chairman Carol Meyrowitz both selling shares in recent transactions, while institutional investors still own more than 91% of the stock.

TJX Companies (NYSE:TJX - Get Free Report) was downgraded by analysts at Erste Group Bank from a "buy" rating to a "hold" rating in a research note issued to investors on Wednesday.

A number of other equities research analysts also recently issued reports on TJX. Citigroup restated a "buy" rating and set a $182.00 price target (up from $168.00) on shares of TJX Companies in a research note on Thursday, May 21st. Wells Fargo & Company reiterated an "outperform" rating and set a $160.00 target price (up from $155.00) on shares of TJX Companies in a research report on Thursday, May 21st. BTIG Research boosted their price target on TJX Companies from $185.00 to $190.00 and gave the company a "buy" rating in a report on Thursday, May 21st. Evercore reissued an "outperform" rating and issued a $175.00 price target on shares of TJX Companies in a report on Thursday, May 21st. Finally, Sanford C. Bernstein restated an "outperform" rating on shares of TJX Companies in a research note on Thursday, May 21st. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, TJX Companies has a consensus rating of "Buy" and an average price target of $176.89.

TJX Companies Trading Up 0.4%

NYSE:TJX traded up $0.58 during trading hours on Wednesday, hitting $150.92. The company had a trading volume of 766,389 shares, compared to its average volume of 5,386,942. 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 stock has a 50-day moving average price of $156.60 and a 200 day moving average price of $156.60. The company has a market capitalization of $166.72 billion, a PE ratio of 29.32, a price-to-earnings-growth ratio of 3.26 and a beta of 0.63. TJX Companies has a 52 week low of $119.84 and a 52 week high of $170.00.

TJX Companies (NYSE:TJX - Get Free Report) last announced its earnings results on Wednesday, May 20th. The apparel and home fashions retailer reported $1.19 EPS for the quarter, beating analysts' consensus estimates of $1.02 by $0.17. TJX Companies had a net margin of 9.40% and a return on equity of 57.92%. The firm had revenue of $14.32 billion for the quarter, compared to analysts' expectations of $14.02 billion. During the same quarter in the previous year, the business posted $0.92 EPS. The company's quarterly revenue was up 9.2% on a year-over-year basis. 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. On average, equities research analysts predict that TJX Companies will post 5.17 EPS for the current fiscal year.

Insider Activity at TJX Companies

In related news, CFO John Klinger sold 6,235 shares of the business's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $160.77, for a total value 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. The trade was a 8.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Chairman Carol Meyrowitz sold 55,624 shares of the company's stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $163.65, for a total value of $9,102,867.60. Following the completion of the sale, the chairman owned 201,496 shares of the company's stock, valued at $32,974,820.40. This represents a 21.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 130,367 shares of company stock worth $20,959,476. 0.15% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. BayBridge Capital Group LLC lifted its position in shares of TJX Companies by 1.1% in the 2nd quarter. BayBridge Capital Group LLC now owns 12,161 shares of the apparel and home fashions retailer's stock worth $1,842,000 after purchasing an additional 136 shares during the period. Empirical Financial Services LLC d.b.a. Empirical Wealth Management increased its holdings in TJX Companies by 6.7% during the second quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 68,821 shares of the apparel and home fashions retailer's stock valued at $10,426,000 after buying an additional 4,338 shares during the period. Accurate Wealth Management LLC raised its stake in TJX Companies by 12.1% in the second quarter. Accurate Wealth Management LLC now owns 7,876 shares of the apparel and home fashions retailer's stock worth $1,192,000 after buying an additional 847 shares in the last quarter. QRG Capital Management Inc. raised its stake in TJX Companies by 6.8% in the second quarter. QRG Capital Management Inc. now owns 323,830 shares of the apparel and home fashions retailer's stock worth $49,060,000 after buying an additional 20,517 shares in the last quarter. Finally, Hendley & Co. Inc. lifted its holdings in TJX Companies by 566.4% during the second quarter. Hendley & Co. Inc. now owns 22,591 shares of the apparel and home fashions retailer's stock worth $3,423,000 after buying an additional 19,201 shares during the period. Hedge funds and other institutional investors own 91.09% of the company's stock.

About TJX Companies

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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