DA Davidson Has Negative Outlook of Target FY2025 Earnings

Target Co. (NYSE:TGT) – Equities researchers at DA Davidson lowered their FY2025 earnings per share (EPS) estimates for shares of Target in a research report issued on Thursday, November 21st. DA Davidson analyst M. Baker now expects that the retailer will post earnings of $8.64 per share for the year, down from their prior forecast of $9.53. The consensus estimate for Target’s current full-year earnings is $8.60 per share. DA Davidson also issued estimates for Target’s FY2026 earnings at $9.87 EPS.

Target (NYSE:TGT) last announced its quarterly earnings data on Wednesday, November 20th. The retailer reported $1.85 earnings per share for the quarter, missing analysts’ consensus estimates of $2.30 by ($0.45). Target had a return on equity of 31.11% and a net margin of 4.06%. The business had revenue of $25.23 billion during the quarter, compared to the consensus estimate of $25.87 billion. During the same quarter in the previous year, the firm posted $2.10 earnings per share. The company’s revenue was up .9% compared to the same quarter last year.

Other research analysts also recently issued research reports about the company. Daiwa Capital Markets downgraded Target from an “outperform” rating to a “neutral” rating and decreased their price objective for the stock from $170.00 to $130.00 in a report on Tuesday. UBS Group lifted their price target on Target from $185.00 to $200.00 and gave the stock a “buy” rating in a research note on Thursday, August 22nd. Sanford C. Bernstein assumed coverage on Target in a research note on Tuesday, October 22nd. They set a “market perform” rating and a $168.00 price objective for the company. Wells Fargo & Company cut their target price on shares of Target from $180.00 to $150.00 and set an “overweight” rating on the stock in a report on Wednesday, November 20th. Finally, Bank of America lowered their price target on shares of Target from $195.00 to $160.00 and set a “buy” rating for the company in a report on Thursday, November 21st. One investment analyst has rated the stock with a sell rating, sixteen have given a hold rating, fifteen have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $160.30.

Target Stock Performance

Target stock opened at $126.55 on Monday. The firm has a fifty day simple moving average of $150.31 and a two-hundred day simple moving average of $149.05. The company has a quick ratio of 0.25, a current ratio of 0.94 and a debt-to-equity ratio of 0.99. Target has a twelve month low of $120.21 and a twelve month high of $181.86. The company has a market capitalization of $58.30 billion, a PE ratio of 13.42, a P/E/G ratio of 2.05 and a beta of 1.24.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Thrivent Financial for Lutherans raised its position in Target by 1.8% in the third quarter. Thrivent Financial for Lutherans now owns 28,025 shares of the retailer’s stock worth $4,368,000 after acquiring an additional 490 shares during the period. D.A. Davidson & CO. lifted its position in shares of Target by 8.6% in the third quarter. D.A. Davidson & CO. now owns 119,458 shares of the retailer’s stock valued at $18,619,000 after acquiring an additional 9,510 shares in the last quarter. TAP Consulting LLC purchased a new stake in shares of Target during the third quarter worth about $2,403,000. Olstein Capital Management L.P. raised its stake in Target by 8.7% during the 3rd quarter. Olstein Capital Management L.P. now owns 50,000 shares of the retailer’s stock valued at $7,793,000 after purchasing an additional 4,000 shares during the period. Finally, Smead Capital Management Inc. lifted its holdings in Target by 3.4% in the 3rd quarter. Smead Capital Management Inc. now owns 1,243,928 shares of the retailer’s stock worth $193,879,000 after purchasing an additional 41,394 shares in the last quarter. Institutional investors own 79.73% of the company’s stock.

Insider Activity at Target

In other Target news, insider Richard H. Gomez sold 6,348 shares of the business’s stock in a transaction dated Friday, September 27th. The stock was sold at an average price of $157.17, for a total value of $997,715.16. Following the completion of the transaction, the insider now owns 123,551 shares of the company’s stock, valued at approximately $19,418,510.67. The trade was a 4.89 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Matthew A. Liegel sold 1,000 shares of the firm’s stock in a transaction dated Friday, August 30th. The shares were sold at an average price of $153.13, for a total transaction of $153,130.00. Following the sale, the chief accounting officer now directly owns 7,276 shares in the company, valued at approximately $1,114,173.88. The trade was a 12.08 % decrease in their position. The disclosure for this sale can be found here. 0.15% of the stock is currently owned by corporate insiders.

Target Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 10th. Investors of record on Wednesday, November 20th will be paid a $1.12 dividend. The ex-dividend date is Wednesday, November 20th. This represents a $4.48 annualized dividend and a dividend yield of 3.54%. Target’s payout ratio is 47.51%.

Target Company Profile

Target Corporation operates as a general merchandise retailer in the United States. The company offers apparel for women, men, boys, girls, toddlers, and infants and newborns, as well as jewelry, accessories, and shoes; and beauty and personal care, baby gear, cleaning, paper products, and pet supplies.