Target (NYSE:TGT) Shares Gap Down on Disappointing Earnings

Target Co. (NYSE:TGT) shares gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $155.78, but opened at $140.54. Target shares last traded at $143.43, with a volume of 3,389,306 shares changing hands.

The retailer reported $2.03 earnings per share for the quarter, missing analysts’ consensus estimates of $2.05 by ($0.02). Target had a net margin of 3.85% and a return on equity of 33.41%. The company had revenue of $24.14 billion during the quarter, compared to analysts’ expectations of $24.52 billion. During the same period in the prior year, the business posted $2.05 earnings per share. The company’s quarterly revenue was down 3.2% compared to the same quarter last year.

Target Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, June 10th. Investors of record on Wednesday, May 15th will be given a dividend of $1.10 per share. This represents a $4.40 annualized dividend and a dividend yield of 3.07%. The ex-dividend date of this dividend is Tuesday, May 14th. Target’s payout ratio is 49.27%.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on TGT shares. HSBC raised shares of Target from a “hold” rating to a “buy” rating and lifted their target price for the stock from $140.00 to $195.00 in a research note on Wednesday, March 6th. Bank of America boosted their price target on shares of Target from $160.00 to $190.00 and gave the stock a “buy” rating in a research report on Wednesday, March 6th. BMO Capital Markets increased their price objective on shares of Target from $145.00 to $170.00 and gave the company a “market perform” rating in a report on Wednesday, March 6th. Telsey Advisory Group restated an “outperform” rating and set a $195.00 target price on shares of Target in a report on Wednesday. Finally, Truist Financial increased their price target on Target from $142.00 to $160.00 and gave the company a “hold” rating in a report on Wednesday, March 6th. Ten analysts have rated the stock with a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $181.96.

Insiders Place Their Bets

In other Target news, insider Brian C. Cornell sold 45,000 shares of the firm’s stock in a transaction that occurred on Monday, March 11th. The shares were sold at an average price of $167.52, for a total value of $7,538,400.00. Following the completion of the transaction, the insider now owns 346,919 shares of the company’s stock, valued at approximately $58,115,870.88. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In other Target news, insider Brian C. Cornell sold 45,000 shares of the company’s stock in a transaction dated Monday, March 11th. The stock was sold at an average price of $167.52, for a total transaction of $7,538,400.00. Following the sale, the insider now owns 346,919 shares in the company, valued at approximately $58,115,870.88. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Christina Hennington sold 4,600 shares of Target stock in a transaction dated Thursday, March 21st. The shares were sold at an average price of $170.88, for a total value of $786,048.00. Following the completion of the transaction, the insider now owns 38,487 shares of the company’s stock, valued at approximately $6,576,658.56. The disclosure for this sale can be found here. Insiders have sold 52,600 shares of company stock worth $8,819,598 over the last three months. Company insiders own 0.23% of the company’s stock.

Institutional Investors Weigh In On Target

Large investors have recently modified their holdings of the company. WealthPlan Investment Management LLC raised its holdings in Target by 1,592.0% during the third quarter. WealthPlan Investment Management LLC now owns 8,494 shares of the retailer’s stock worth $939,000 after purchasing an additional 7,992 shares in the last quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management raised its stake in Target by 14.9% during the 3rd quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 2,108 shares of the retailer’s stock worth $233,000 after acquiring an additional 274 shares in the last quarter. MGO One Seven LLC lifted its position in Target by 2.7% in the third quarter. MGO One Seven LLC now owns 9,888 shares of the retailer’s stock valued at $1,093,000 after acquiring an additional 257 shares during the last quarter. ORG Partners LLC acquired a new position in Target in the third quarter valued at $136,000. Finally, Nomura Asset Management Co. Ltd. grew its holdings in shares of Target by 23.5% during the third quarter. Nomura Asset Management Co. Ltd. now owns 350,052 shares of the retailer’s stock worth $38,705,000 after purchasing an additional 66,519 shares during the last quarter. 79.73% of the stock is owned by hedge funds and other institutional investors.

Target Price Performance

The company has a debt-to-equity ratio of 1.11, a current ratio of 0.91 and a quick ratio of 0.29. The firm has a market cap of $66.33 billion, a price-to-earnings ratio of 16.05, a PEG ratio of 1.46 and a beta of 1.16. The stock has a 50-day moving average price of $165.70 and a 200 day moving average price of $149.38.

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.