Target (TGT) Downgraded by Zacks Investment Research to “Hold”

Target (NYSE:TGT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Friday.

According to Zacks, “Target is trying all means to rapidly adapt to the changing retail ecosystem. The company is deploying resources to enhance omni-channel capacities, come up with new brands, remodel or refurbish stores and expand same-day delivery options to expedite the shopping process. All these bode well for the stock that has outpaced the industry in the past six months and continued with its upbeat top-line performance in first-quarter fiscal 2018 as well. However, bottom line missed the consensus mark for the second quarter in row but managed to score year-over-year growth, despite rise in cost of sales and SG&A expenses. Analysts pointed that incremental investments, higher wages and rise in costs due to new fulfillment options may weigh on margins to an extent. Nevertheless, it is better to face short-term impediments in order to attain the long-term goals. Meanwhile, Target maintained its fiscal 2018 view, which looks quite encouraging.”

Other research analysts also recently issued research reports about the stock. ValuEngine raised shares of Target from a “hold” rating to a “buy” rating in a research note on Tuesday, February 13th. Credit Suisse Group set a $86.00 price target on shares of Target and gave the stock a “buy” rating in a research note on Monday, May 14th. Guggenheim reaffirmed a “hold” rating on shares of Target in a research note on Wednesday. MKM Partners set a $91.00 price target on shares of Target and gave the stock a “buy” rating in a research note on Thursday. Finally, Citigroup reaffirmed a “neutral” rating and issued a $80.00 price target (down previously from $86.00) on shares of Target in a research note on Friday, February 16th. One analyst has rated the stock with a sell rating, thirteen have assigned a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the company. Target has a consensus rating of “Hold” and a consensus target price of $74.16.

Target traded up $0.30, hitting $71.24, during trading on Friday, MarketBeat reports. The company had a trading volume of 241,369 shares, compared to its average volume of 5,443,344. The company has a market capitalization of $38.14 billion, a PE ratio of 15.13, a P/E/G ratio of 2.57 and a beta of 0.71. Target has a 52-week low of $48.56 and a 52-week high of $78.70. The company has a debt-to-equity ratio of 1.18, a current ratio of 0.90 and a quick ratio of 0.30.

Target (NYSE:TGT) last posted its quarterly earnings results on Wednesday, May 23rd. The retailer reported $1.32 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $1.38 by ($0.06). The company had revenue of $16.78 billion during the quarter, compared to analysts’ expectations of $16.58 billion. Target had a return on equity of 23.34% and a net margin of 4.09%. The company’s quarterly revenue was up 3.4% on a year-over-year basis. During the same period in the prior year, the business earned $1.21 EPS. sell-side analysts forecast that Target will post 5.29 EPS for the current fiscal year.

In other Target news, insider John J. Mulligan sold 118,373 shares of Target stock in a transaction that occurred on Tuesday, April 3rd. The shares were sold at an average price of $69.37, for a total transaction of $8,211,535.01. Following the completion of the sale, the insider now directly owns 195,906 shares in the company, valued at approximately $13,589,999.22. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Don H. Liu sold 2,735 shares of Target stock in a transaction that occurred on Wednesday, May 16th. The shares were sold at an average price of $75.00, for a total transaction of $205,125.00. Following the sale, the insider now owns 62,210 shares of the company’s stock, valued at $4,665,750. The disclosure for this sale can be found here. 0.19% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the business. Lee Financial Co lifted its stake in Target by 168.7% during the 1st quarter. Lee Financial Co now owns 1,435 shares of the retailer’s stock valued at $100,000 after acquiring an additional 901 shares during the period. Westside Investment Management Inc. lifted its stake in shares of Target by 128.6% in the 4th quarter. Westside Investment Management Inc. now owns 1,600 shares of the retailer’s stock valued at $107,000 after purchasing an additional 900 shares during the period. Signaturefd LLC acquired a new position in shares of Target in the 1st quarter valued at $112,000. Security Asset Management acquired a new position in shares of Target in the 4th quarter valued at $115,000. Finally, Stelac Advisory Services LLC acquired a new position in shares of Target in the 1st quarter valued at $128,000. Institutional investors and hedge funds own 84.88% of the company’s stock.

Target Company Profile

Target Corporation operates as a general merchandise retailer in the United States. The company offers beauty and household essentials, including beauty products, personal and baby care products, cleaning products, paper products, and pet supplies; food and beverage products, such as dry grocery, dairy, frozen food, beverage, candy, snacks, deli, bakery, meat, and produce products; and apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as intimate apparel, jewelry, accessories, and shoes.

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