Zacks Investment Research Downgrades Target Corp. (TGT) to Sell
Target Corp. (NYSE:TGT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and 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.”
Several other equities analysts have also commented on TGT. Vetr lowered Target Corp. from a “buy” rating to a “hold” rating and set a $72.27 price target on the stock. in a research note on Thursday, June 30th. BMO Capital Markets reaffirmed a “market perform” rating and issued a $76.00 price target on shares of Target Corp. in a research note on Wednesday, July 6th. Argus reaffirmed a “hold” rating on shares of Target Corp. in a research note on Thursday, July 7th. Piper Jaffray Cos. reaffirmed an “overweight” rating and issued a $86.00 price target on shares of Target Corp. in a research note on Thursday, July 7th. Finally, Miller Tabak started coverage on Target Corp. in a research note on Friday, July 29th. They issued a “buy” rating and a $87.00 price target on the stock. Three research analysts have rated the stock with a sell rating, seventeen have issued a hold rating and nine have issued a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus target price of $74.49.
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Shares of Target Corp. (NYSE:TGT) traded up 0.43% during trading on Tuesday, hitting $67.53. The stock had a trading volume of 1,310,281 shares. The company’s 50 day moving average price is $68.90 and its 200 day moving average price is $72.75. Target Corp. has a 12 month low of $65.50 and a 12 month high of $84.14. The stock has a market cap of $38.82 billion, a price-to-earnings ratio of 12.50 and a beta of 0.68.
Target Corp. (NYSE:TGT) last announced its quarterly earnings results on Wednesday, August 17th. The retailer reported $1.23 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.12 by $0.11. Target Corp. had a return on equity of 23.59% and a net margin of 4.59%. The business had revenue of $16.20 billion for the quarter. During the same period last year, the company earned $1.22 EPS. The business’s revenue for the quarter was down 7.2% on a year-over-year basis. Equities research analysts expect that Target Corp. will post $4.95 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Saturday, December 10th. Stockholders of record on Wednesday, November 16th will be issued a $0.60 dividend. The ex-dividend date of this dividend is Monday, November 14th. This represents a $2.40 annualized dividend and a dividend yield of 3.57%. Target Corp.’s dividend payout ratio is currently 44.44%.
Several hedge funds have recently bought and sold shares of the stock. Ropes Wealth Advisors LLC boosted its stake in Target Corp. by 9.1% in the second quarter. Ropes Wealth Advisors LLC now owns 1,527 shares of the retailer’s stock valued at $107,000 after buying an additional 127 shares in the last quarter. Arcadia Investment Management Corp MI boosted its stake in Target Corp. by 41.7% in the second quarter. Arcadia Investment Management Corp MI now owns 1,700 shares of the retailer’s stock valued at $119,000 after buying an additional 500 shares in the last quarter. Loomis Sayles & Co. L P boosted its stake in Target Corp. by 1.9% in the second quarter. Loomis Sayles & Co. L P now owns 2,201 shares of the retailer’s stock valued at $154,000 after buying an additional 42 shares in the last quarter. Duncker Streett & Co. Inc. increased its position in Target Corp. by 4.4% in the second quarter. Duncker Streett & Co. Inc. now owns 2,370 shares of the retailer’s stock valued at $165,000 after buying an additional 100 shares during the last quarter. Finally, Joel Isaacson & Co. LLC increased its position in Target Corp. by 25.5% in the second quarter. Joel Isaacson & Co. LLC now owns 2,401 shares of the retailer’s stock valued at $168,000 after buying an additional 488 shares during the last quarter. 86.16% of the stock is owned by institutional investors and hedge funds.
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.
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