Target (NYSE:TGT) Reaches New 52-Week Low - Time to Sell?

On Monday, shares of Target Corporation (NYSE:TGT) hit a new 52-week low, trading as low as $111.84 before closing at $113.34. The trading volume for the day reached 5,435,060 shares, reflecting increased market activity, compared to the previous close of $115.08.

Analysts' Ratings and Outlook

Several financial institutions have recently updated their recommendations and price targets for Target. Wells Fargo & Company lowered its target price for Target shares from $150.00 to $135.00, while maintaining an "overweight" rating. On the other hand, Daiwa America reduced its rating from "strong buy" to "hold" in a note published on November 26th. Similarly, BMO Capital Markets adjusted its target price from $160.00 to $120.00, opting for a "market perform" rating. JPMorgan Chase & Co. also cut its price target from $146.00 to $140.00, keeping a "neutral" stance on the stock. DA Davidson followed suit, reducing its target from $153.00 to $140.00 while endorsing a "buy" rating. Overall, one analyst rates the stock as a sell, eighteen analysts suggest holding, and fourteen recommend buying. According to data from MarketBeat, Target's consensus rating stands at "Hold," with an average target price of $145.87.

Performance Overview

Target's stock showed a modest decline of 1.2% recently. The company boasts a market capitalization of $52.12 billion and a price-to-earnings ratio of 12.06, along with a PEG ratio of 1.94. The stock's fifty-day moving average is recorded at $132.05, and the two-hundred-day moving average stands at $141.37. Financial metrics reflect a current ratio of 0.94, quick ratio of 0.25, and a debt-to-equity ratio of 0.99.

Quarterly Earnings Report

Target announced its quarterly earnings results on March 4th, reporting earnings per share (EPS) of $2.41, exceeding the analysts' expectations of $2.24 by $0.17. The company's net margin was recorded at 4.06%, with a return on equity of 31.11%. Target generated revenue of $30.92 billion, slightly above the anticipated $30.83 billion. Analysts predict that Target will achieve an EPS of 8.69 for the current fiscal year.

Dividend Declaration

Recently, Target announced a quarterly dividend of $1.12 per share, which was paid to stockholders on March 1st, with an ex-dividend date of February 12th. This annualizes to a dividend of $4.48, translating to a yield of 3.94%. The company has a dividend payout ratio of 50.56%.

Institutional Holdings Update

Recently, large institutional investors have been active in adjusting their positions in Target stock. Legacy Investment Solutions LLC entered a stake in Target valued at approximately $28,000 during the third quarter. Similarly, Hopwood Financial Services Inc. purchased a new position in the fourth quarter worth around $29,000, along with Bernard Wealth Management Corp. and others. MCF Advisors LLC notably increased its holdings in Target by 175.3%, now owning 256 shares valued at $35,000. Overall, around 79.73% of Target's stock is held by various hedge funds and institutional investors.

Company Profile

Target Corporation is a prominent general merchandise retailer based in the United States. The company provides a wide range of products, including apparel for different age groups, jewelry, beauty products, personal care items, baby gear, household cleaning products, and pet supplies.

Investment Considerations

Before investing in Target, it's essential to assess whether this is the right time to buy. Analysts have largely given Target a "Hold" rating, while they suggest that there are other investments that may perform better in the current market environment.

Target, Stocks, Market