Target Corp. (TGT) Downgraded to “Sell” at Zacks Investment Research
Target Corp. (NYSE:TGT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.
According to Zacks, “Target continued with its earnings beat performance, as it reported second-quarter fiscal 2016 results. However, top-line fell short of the Zacks Consensus Estimate for the fourth consecutive quarter. Total sales also declined year over year for the third straight quarter. The sale of the pharmacy and clinic businesses to CVS Health impacted the top line. Stiff competition from other discount retailers who are far more geographically diversified also hurt the company’s performance. As a result, management trimmed its fiscal 2016 earnings projection and provided a subdued comparable sales outlook citing tough retail environment. Nevertheless, the initiatives such as the development of omni-channel capacities, diversification and localization of assortments along with emphasis on flexible format stores, bode well. The company also intends to invest in merchandise categories such as Style, Baby, Kids and Wellness that are performing well.”
Other equities analysts have also issued reports about the stock. Vetr upgraded shares of Target Corp. from a “hold” rating to a “buy” rating and set a $75.70 price objective on the stock in a report on Monday, July 4th. Miller Tabak started coverage on shares of Target Corp. in a research note on Friday, July 29th. They issued a “buy” rating and a $87.00 target price for the company. Citigroup Inc. reaffirmed a “buy” rating and issued a $80.00 target price on shares of Target Corp. in a research note on Thursday, August 18th. Brean Capital reaffirmed a “buy” rating and issued a $28.00 target price on shares of Target Corp. in a research note on Saturday, October 8th. Finally, Argus reaffirmed a “hold” rating on shares of Target Corp. in a research note on Thursday, July 7th. Three investment analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and nine have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average price target of $74.49.
This story is the sole property of American Banking News and it was originally published by American Banking News. If you are reading this story on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. The original version of this article is available at https://www.americanbankingnews.com/2016/10/18/target-corp-tgt-downgraded-to-sell-at-zacks-investment-research.html
Target Corp. (NYSE:TGT) traded up 0.18% during midday trading on Tuesday, hitting $67.36. 3,011,099 shares of the company traded hands. The stock’s 50-day moving average is $68.90 and its 200-day moving average is $72.75. Target Corp. has a 12-month low of $65.50 and a 12-month high of $84.14. The firm has a market capitalization of $38.72 billion, a PE ratio of 12.46 and a beta of 0.68.
Target Corp. (NYSE:TGT) last announced its quarterly earnings data on Wednesday, August 17th. The retailer reported $1.23 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.12 by $0.11. Target Corp. had a net margin of 4.59% and a return on equity of 23.59%. The business had revenue of $16.20 billion for the quarter. During the same quarter in the prior year, the company earned $1.22 earnings per share. The company’s quarterly revenue was down 7.2% on a year-over-year basis. Analysts anticipate that Target Corp. will post $4.95 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Saturday, December 10th. Investors of record on Wednesday, November 16th will be given a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a yield of 3.56%. The ex-dividend date of this dividend is Monday, November 14th. Target Corp.’s dividend payout ratio is 44.44%.
A number of institutional investors have recently added to or reduced their stakes in the stock. Pictet Asset Management Ltd. raised its position in Target Corp. by 0.5% in the first quarter. Pictet Asset Management Ltd. now owns 404,565 shares of the retailer’s stock valued at $31,738,000 after buying an additional 1,900 shares in the last quarter. UBS Asset Management Americas Inc. raised its position in Target Corp. by 0.4% in the first quarter. UBS Asset Management Americas Inc. now owns 2,404,482 shares of the retailer’s stock valued at $197,841,000 after buying an additional 10,728 shares in the last quarter. Bank of Nova Scotia Trust Co. raised its position in Target Corp. by 2.4% in the first quarter. Bank of Nova Scotia Trust Co. now owns 4,225 shares of the retailer’s stock valued at $348,000 after buying an additional 100 shares in the last quarter. Lazard Asset Management LLC raised its position in Target Corp. by 4.1% in the first quarter. Lazard Asset Management LLC now owns 56,296 shares of the retailer’s stock valued at $4,631,000 after buying an additional 2,220 shares in the last quarter. Finally, Optimum Investment Advisors raised its position in Target Corp. by 10.6% in the first quarter. Optimum Investment Advisors now owns 15,656 shares of the retailer’s stock valued at $1,288,000 after buying an additional 1,500 shares in the last quarter. 86.16% of the stock is currently owned by hedge funds and other institutional investors.
About Target Corp.
Target Corporation offers everyday essentials and merchandise to its customers. The Company sells a range of general merchandise and food through its store and digital channels. The Company’s general merchandise stores offer an edited food assortment, including perishables, dry grocery, dairy and frozen items.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Target Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Target Corp. and related companies with MarketBeat.com's FREE daily email newsletter.