Target (NYSE:TGT) Hits New 52-Week Low - Here's What Happened

Shares of Target Corporation (NYSE:TGT) reached a new 52-week low on Monday, trading at a minimum of $111.84 before closing at $113.34. During the day, the stock exchanged hands with a volume of 5,435,060 shares, compared to its previous closure at $115.08.

Analyst Ratings and Outlook

Numerous brokerages have provided updates on Target's stock. Wells Fargo & Company adjusted their target price for Target from $150.00 down to $135.00, maintaining an "overweight" rating according to their report dated March 5th. On the other hand, Daiwa America downgraded Target’s stock from a "strong-buy" to a "hold" in their findings from November 26th. Additionally, BMO Capital Markets decreased their target from $160.00 to $120.00, categorizing the stock as a "market perform" on November 21st. Similarly, JPMorgan Chase reduced the price target from $146.00 to $140.00 while suggesting a "neutral" stance in their analysis released on March 5th. DA Davidson also lowered their price goal from $153.00 to $140.00, designating it as a "buy". The consensus rating from market analysts currently stands at "Hold" with an average target price of $145.87.

Target Performance Overview

Target's stock has dipped by 1.2%, and the company has a market capitalization of $52.12 billion. The price-to-earnings (P/E) ratio is 12.06, accompanied by a PEG ratio of 1.94 and a beta of 1.18. Target's current ratio is 0.94, while the quick ratio is quite low at 0.25, indicating some liquidity concerns. The company's debt-to-equity ratio is reported at 0.99. Over the last few weeks, Target's fifty-day moving average has been approximately $132.05, and the two-hundred-day moving average is about $141.37.

Earnings Report and Financials

On March 4th, Target reported its quarterly earnings. The company posted earnings of $2.41 per share, surpassing the anticipated consensus of $2.24 by $0.17. The retailer achieved a net margin of 4.06% along with a return on equity of 31.11%. Total revenue for the quarter amounted to $30.92 billion, slightly exceeding analyst projections of $30.83 billion. Analysts expect that Target will report an earnings per share (EPS) of approximately 8.69 for the current fiscal year.

Dividend Announcement

Recently, Target declared a quarterly dividend that was paid on March 1st. Shareholders recorded as of February 12th received a dividend of $1.12 per share. The annualized dividend stands at $4.48, providing a yield of 3.94%. Currently, Target's dividend payout ratio sits at 50.56%.

Institutional Investment Trends

Recent activity among large investors has shown varied approaches to their stakes in Target. Legacy Investment Solutions LLC invested in Target for the first time in the third quarter, approximating $28,000. Hopwood Financial Services Inc. and Bernard Wealth Management Corp. also initiated positions worth about $29,000 each in the fourth quarter. In contrast, MCF Advisors LLC substantially increased their holdings in Target by 175.3%, now owning 256 shares valued at approximately $35,000. Similarly, Raleigh Capital Management Inc. raised their position by 110.7% in the last quarter, holding 257 shares worth $35,000. A significant portion, approximately 79.73%, of Target's stock is currently owned by institutional investors.

Company Overview

Target Corporation functions as a primary retailer based in the United States. The company provides a wide range of merchandise, including apparel for all ages, jewelry, beauty and personal care products, baby essentials, cleaning supplies, as well as various household items.

Conclusion

As Target stock reaches a new low, investors may consider whether it is time to sell or if there are still opportunities for recovery. While analysts generally suggest a hold rating, potential investors should weigh their options carefully.

Target, Stocks, Dividend