The State of New Jersey Common Pension Fund D has increased its investment in Target Corporation (NYSE:TGT) by 3.2% during the third quarter of 2023, according to Holdings Channel. The fund now owns a total of 158,425 shares, having acquired an additional 4,955 shares in that timeframe. As of the most recent filing with the Securities and Exchange Commission, the value of these holdings stands at approximately $14.2 million.
Several other institutional investors have also made significant adjustments to their holdings in Target. Vanguard Group Inc. raised its stake by 14.7% during the second quarter, bringing its total to 51,444,338 shares valued at $5.075 billion after acquiring an additional 6,607,982 shares. State Street Corp increased its position by 4.3%, now owning 36,736,101 shares worth about $3.624 billion. Similarly, Charles Schwab Investment Management Inc. raised its holdings by 1.7%, with 16,247,590 shares valued at $1.603 billion.
Norges Bank also entered the fray by purchasing a new stake worth $578 million in the second quarter. Additionally, Invesco Ltd. increased its holdings by 9.6%, now possessing 3,549,382 shares valued at $350 million. Collectively, institutional investors and hedge funds own approximately 79.73% of Target’s stock.
Analyst Ratings and Market Activity
Recent evaluations from analysts present a mixed outlook on Target shares. Argus Research recently reduced its price target from $135.00 to $125.00, maintaining a “buy” rating. Roth MKM set a target of $88.00, while Deutsche Bank Aktiengesellschaft established a target of $108.00. DA Davidson also set a target price of $120.00, and Jefferies Financial Group reaffirmed a “buy” rating with a target of $115.00.
Overall, ten analysts have rated Target with a “buy” rating, while twenty have issued a “hold” rating, and three have assigned a “sell” rating. According to MarketBeat, the stock currently has a consensus rating of “hold” and an average price target of $103.90.
On the trading side, Target’s stock opened at $115.61 on Tuesday, reflecting a 2.6% increase. The company boasts a market capitalization of $52.35 billion, a price-to-earnings ratio of 14.03, and a beta of 1.14. Over the past year, Target’s shares reached a low of $83.44 and a high of $131.70.
Recent Financial Performance and Future Guidance
Target reported earnings for the third quarter on November 19, 2023, revealing earnings per share (EPS) of $1.78, surpassing analysts’ expectations of $1.71 by $0.07. The company recorded a revenue of $25.27 billion, slightly below the estimated $25.44 billion. The year-over-year revenue reflected a 1.6% decline, with the previous year showing an EPS of $1.85.
Looking ahead, Target has set its fiscal year 2025 guidance for EPS between $7.00 and $8.00. Analysts anticipate the company will post an EPS of $8.69 for the current year.
In other financial news, Target announced a quarterly dividend of $1.14, which will be payable on March 1, 2024. Investors on record as of February 11, 2024, will receive this dividend, translating to an annualized payout of $4.56 and a dividend yield of 3.9%. The company’s dividend payout ratio is approximately 55.34%.
About Target Corporation:
Based in Minneapolis, Minnesota, Target Corporation is a leading general merchandise retailer. The company operates a wide network of full-line and small-format stores across the United States, complemented by a robust e-commerce platform and mobile application. Target offers a diverse range of products, including apparel, electronics, groceries, and home essentials, often featuring both national and exclusive brands.
With its storied history dating back to the founding of the Dayton Company in 1902, Target has evolved significantly since launching its discount chain in 1962 and adopting its current corporate name.
