Target (TGT) Shares Down 11.3% on Disappointing Earnings

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Target Co. (NYSE:TGT) shares were down 11.3% on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $66.12 and last traded at $69.03. Approximately 20,868,719 shares traded hands during trading, an increase of 287% from the average daily volume of 5,394,390 shares. The stock had previously closed at $77.79.

The retailer reported $1.09 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.11 by ($0.02). The firm had revenue of $17.59 billion during the quarter, compared to analysts’ expectations of $17.81 billion. Target had a return on equity of 24.29% and a net margin of 4.19%. The business’s quarterly revenue was up 5.7% on a year-over-year basis. During the same quarter last year, the business earned $0.91 earnings per share.

The business also recently announced a quarterly dividend, which will be paid on Monday, December 10th. Investors of record on Wednesday, November 21st will be issued a $0.64 dividend. The ex-dividend date of this dividend is Tuesday, November 20th. This represents a $2.56 dividend on an annualized basis and a yield of 3.71%. Target’s dividend payout ratio is currently 54.35%.

A number of equities analysts recently commented on the company. KeyCorp assumed coverage on Target in a report on Friday. They issued an “overweight” rating and a $110.00 target price on the stock. Buckingham Research assumed coverage on Target in a report on Thursday, November 15th. They issued a “buy” rating and a $102.00 target price on the stock. Cowen raised Target from a “market perform” rating to an “outperform” rating and set a $100.00 target price on the stock in a report on Wednesday, November 7th. BMO Capital Markets assumed coverage on Target in a report on Monday, September 17th. They issued a “market perform” rating and a $88.00 target price on the stock. Finally, Citigroup raised their target price on Target from $76.00 to $92.00 and gave the stock a “neutral” rating in a report on Monday, August 27th. One investment analyst has rated the stock with a sell rating, thirteen have issued a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company. Target currently has a consensus rating of “Hold” and a consensus price target of $90.38.

In other Target news, insider Stephanie A. Lundquist sold 2,100 shares of the firm’s stock in a transaction dated Tuesday, October 9th. The stock was sold at an average price of $86.00, for a total transaction of $180,600.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Janna A. Potts sold 15,172 shares of the firm’s stock in a transaction dated Monday, September 24th. The shares were sold at an average price of $88.00, for a total value of $1,335,136.00. The disclosure for this sale can be found here. 0.19% of the stock is owned by company insiders.

Hedge funds have recently modified their holdings of the company. Harvest Fund Management Co. Ltd bought a new stake in shares of Target in the third quarter worth about $104,000. Csenge Advisory Group bought a new stake in shares of Target in the third quarter worth about $109,000. Sun Life Financial INC increased its holdings in shares of Target by 739.5% in the second quarter. Sun Life Financial INC now owns 1,444 shares of the retailer’s stock worth $110,000 after purchasing an additional 1,272 shares during the last quarter. CSat Investment Advisory L.P. bought a new stake in shares of Target in the second quarter worth about $114,000. Finally, Duncker Streett & Co. Inc. increased its holdings in shares of Target by 1,435.0% in the second quarter. Duncker Streett & Co. Inc. now owns 1,535 shares of the retailer’s stock worth $117,000 after purchasing an additional 1,435 shares during the last quarter. 83.13% of the stock is currently owned by hedge funds and other institutional investors.

The company has a quick ratio of 0.17, a current ratio of 0.82 and a debt-to-equity ratio of 1.09. The firm has a market capitalization of $41.94 billion, a PE ratio of 14.66, a PEG ratio of 2.19 and a beta of 0.73.

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About Target (NYSE:TGT)

Target Corporation operates as a general merchandise retailer in the United States. The company offers beauty and household essentials, including beauty products, personal and baby care products, cleaning products, paper products, and pet supplies; food and beverage products, such as dry grocery, dairy, frozen food, beverage, candy, snacks, deli, bakery, meat, and produce products; and apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as intimate apparel, jewelry, accessories, and shoes.

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