Target Stock Soars: Analysts Issue Buy Ratings
Target Stock Fluctuates Amid Mixed Analyst Ratings and Q1 Earnings Beat
Target Corporation (NYSE: TGT) experienced stock price volatility this week following the release of its first-quarter earnings report and a flurry of analyst ratings adjustments. While the retailer exceeded earnings expectations, differing opinions on its future performance have led to fluctuating share prices.
On Tuesday, March 4th, Target reported earnings per share (EPS) of $2.41 for the first quarter, surpassing analyst consensus estimates of $2.24 by $0.17. Revenue for the quarter reached $30.92 billion, slightly exceeding predictions of $30.83 billion. The company boasted a return on equity of 31.11% and a net margin of 4.06%. Analysts currently forecast Target to post 8.69 EPS for the current fiscal year. A quarterly dividend of $1.12 per share was also announced, payable on June 1st to stockholders of record on May 14th. This represents a $4.48 annualized dividend and a yield of 4.75%.
However, the positive earnings news was met with a mixed response from analysts. While some upgraded their ratings and price objectives, others lowered their targets. StockNews.com upgraded Target from a "hold" to a "buy" rating. Jefferies Financial Group maintained a "buy" rating but reduced its price objective from $165.00 to $150.00. Conversely, Evercore ISI lowered its price objective from $130.00 to $120.00, maintaining an in-line rating. Other firms, including Roth Capital, KGI Securities, Truist Financial, and Piper Sandler, also issued revised price targets and ratings ranging from "buy" to "neutral" and "hold." Currently, the consensus rating among analysts is "Hold," with an average price target of $142.90. One analyst rated the stock a sell, seventeen assigned a hold rating, and fourteen issued a buy rating.
Target's stock price reflected this analyst uncertainty. On Wednesday, March 5th, TGT traded up $1.41, closing at $105.84, on a volume of 5,559,616 shares. However, on Tuesday, the stock dropped $11.53, closing at $94.24, on a volume of 18,990,698 shares. The company's 52-week low is $93.03, and its 52-week high is $177.23. Other key financial metrics include a market capitalization of $48.22 billion (as of Wednesday) and $42.93 billion (as of Tuesday), a P/E ratio ranging from 9.99 to 11.22, and a PEG ratio of 1.94.
Significant institutional investor activity also impacted Target's stock. Several firms, including State Street Corp, Capital World Investors, FMR LLC, Geode Capital Management LLC, and Norges Bank, adjusted their holdings in the fourth quarter. As of the most recent reporting, 79.73% of Target's stock is held by institutional investors. Target itself operates as a general merchandise retailer in the United States, offering a wide range of apparel, accessories, home goods, and other products.
Target Corporation (NYSE: TGT) experienced stock price volatility this week following the release of its first-quarter earnings report and a flurry of analyst ratings adjustments. While the retailer exceeded earnings expectations, differing opinions on its future performance have led to fluctuating share prices.
On Tuesday, March 4th, Target reported earnings per share (EPS) of $2.41 for the first quarter, surpassing analyst consensus estimates of $2.24 by $0.17. Revenue for the quarter reached $30.92 billion, slightly exceeding predictions of $30.83 billion. The company boasted a return on equity of 31.11% and a net margin of 4.06%. Analysts currently forecast Target to post 8.69 EPS for the current fiscal year. A quarterly dividend of $1.12 per share was also announced, payable on June 1st to stockholders of record on May 14th. This represents a $4.48 annualized dividend and a yield of 4.75%.
However, the positive earnings news was met with a mixed response from analysts. While some upgraded their ratings and price objectives, others lowered their targets. StockNews.com upgraded Target from a "hold" to a "buy" rating. Jefferies Financial Group maintained a "buy" rating but reduced its price objective from $165.00 to $150.00. Conversely, Evercore ISI lowered its price objective from $130.00 to $120.00, maintaining an in-line rating. Other firms, including Roth Capital, KGI Securities, Truist Financial, and Piper Sandler, also issued revised price targets and ratings ranging from "buy" to "neutral" and "hold." Currently, the consensus rating among analysts is "Hold," with an average price target of $142.90. One analyst rated the stock a sell, seventeen assigned a hold rating, and fourteen issued a buy rating.
Target's stock price reflected this analyst uncertainty. On Wednesday, March 5th, TGT traded up $1.41, closing at $105.84, on a volume of 5,559,616 shares. However, on Tuesday, the stock dropped $11.53, closing at $94.24, on a volume of 18,990,698 shares. The company's 52-week low is $93.03, and its 52-week high is $177.23. Other key financial metrics include a market capitalization of $48.22 billion (as of Wednesday) and $42.93 billion (as of Tuesday), a P/E ratio ranging from 9.99 to 11.22, and a PEG ratio of 1.94.
Significant institutional investor activity also impacted Target's stock. Several firms, including State Street Corp, Capital World Investors, FMR LLC, Geode Capital Management LLC, and Norges Bank, adjusted their holdings in the fourth quarter. As of the most recent reporting, 79.73% of Target's stock is held by institutional investors. Target itself operates as a general merchandise retailer in the United States, offering a wide range of apparel, accessories, home goods, and other products.
