Target (NYSE:TGT) Reaches New 52-Week Low - Here's Why

Target Co. (NYSE:TGT) experienced a significant drop in its stock price on Monday, reaching a new 52-week low. The stock fell to $100.50 during mid-day trading before closing at $102.26, with over 1 million shares exchanged, compared to the previous closing price of $103.65.

Insights from Wall Street Analysts

Various research firms have provided insights on Target's stock performance. For instance, Guggenheim raised its price target for Target from $145 to $155, reaffirming a "buy" rating on January 22nd. On the other hand, Goldman Sachs lowered its price target from $166 to $142 while maintaining a "buy" rating. Citigroup reduced its price objective from $133 to $120 and assigned a "neutral" rating. Additionally, Sanford C. Bernstein maintained a "market perform" status for the stock. Jefferies Financial Group also decreased its price target from $165 to $150 while keeping a "buy" stance. Currently, one analyst has issued a sell rating, while among the 32 analysts, seventeen recommend holding the stock and fourteen suggest buying it. The consensus rating averaged to a "Hold" with a price target of $143.40, according to MarketBeat.com.

Target's Stock Performance and Financial Metrics

As of now, Target's stock has seen a slight decline of 0.3%. The company displays a quick ratio of 0.25 and a current ratio of 0.94. Its debt-to-equity ratio stands at 0.99. The stock's 50-day moving average is $122.96, whereas the 200-day moving average is $136.39. Target has a market capitalization of approximately $47.09 billion, with a price-to-earnings ratio of 10.96 and a price-to-earnings-growth ratio of 1.94, along with a beta of 1.18.

Recently, Target disclosed its quarterly earnings data. The retailer reported an earnings per share (EPS) of $2.41, surpassing the anticipated EPS of $2.24 by $0.17. Target achieved a return on equity of 31.11% and a net margin of 4.06%. During the quarter, the company generated revenue amounting to $30.92 billion, which was slightly better than the forecast of $30.83 billion. Analysts project that Target will achieve an EPS of 8.69 for the current fiscal year.

Dividend Announcement from Target

In addition to the stock’s performance, Target has also announced a quarterly dividend of $1.12 per share, payable on June 1st. Investors recorded by May 14th will receive this dividend, and the ex-dividend date is the same. This results in an annualized dividend of $4.48 and a yield of 4.33%, with a current payout ratio of 50.56%.

Changes in Institutional Holdings

Several institutional investors and hedge funds have adjusted their holdings in Target recently. Kathmere Capital Management increased its stake by 3.0%, bringing its total shares to 2,541. Horrell Capital Management's holdings rose by 0.3%, totaling 26,657 shares. Fiducient Advisors increased its position by 4.6% to own 1,778 shares. First PREMIER Bank boosted its stake by 21.9%, owning 445 shares afterward. Lastly, Winch Advisory Services expanded their position by 34.5% to hold 320 shares. Currently, about 79.73% of Target's stock is owned by institutional investors and hedge funds.

Overview of Target Corporation

Target Corporation is a general merchandise retailer based in the United States. It offers a wide variety of products including apparel for men, women, and children, as well as beauty and personal care items, baby supplies, and household essentials.

Conclusion

The recent dip in Target's stock price to a 52-week low has raised questions among investors about the future of the company's performance. While analysts have varied opinions on whether to buy or hold, Target's financial health and upcoming dividend announcement may play a significant role in its recovery.

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