Street Has Mixed Opinions On Target Corporation (TGT)

Analysts at Telsey Advisory Group lifted target price for shares of Target Corporation (NYSE:TGT) but repeated their Outperform recommendation for the stock in their opinion released on January 07. The price target has been raised from $100 to $86. Standpoint Research analysts bumped their recommendation on TGT stock from Hold to Buy in a separate flash note to investors on December 26.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Target Corporation (NYSE:TGT)’s prospects. The earliest insider trade took place on 10/09/2018. Lundquist Stephanie A parted with a total of 2.1 thousand shares of company at average share price of $86. The total for the sales was set at $180.6 thousand. After this transaction, the Executive Officer account balance stood at 22.83 thousand shares. The stock lost -19.06 percent since that insider sale. On 09/24/2018, Potts Janna A., Executive Officer, sold 15.17 thousand shares at a price per share of $88. This removed 1.34 million shares from the insider’s fortune and the stock saw a -20.9 percent retreat in value since the news became public. This transaction left 21.46 thousand shares in the Executive Officer account. On 08/23/2018, Chief Accounting Officer Harrison Robert M performed a sale transaction worth $851.49 thousand. This sale at $86.71 each has eliminated 9.82 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -19.72 percent decrease since the transaction was reported. The insider now is left with 10.31 thousand shares remaining in the account. Ward Laysha, who performs the Executive Officer job, sold 43.93 thousand shares for $3.48 million. The disposal occurred on 06/11/2018 was priced at $79.33 per share. The share price plunged -12.25 percent since the reporting date. Ward Laysha now left with a stake of 55 thousand TGT stock worth $3.83 million after the insider selling.

Target Corporation (TGT) is expected to jump by 15.11 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $110-month high price target. This represents a whopping 58.02 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $79, which represents a return potential of 13.49 percent when compared to the closing price of the stock of $69.61 on Friday, January 11. The lowest price target for the stock is $60 — slightly more than -13.81 percent from TGT’s current share price.

The shares are currently floating around the first support level of $68.43. Below this, the next support is placed in the zone of $67.26. Till the time, the TGT stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 50.48 on daily chart, which may remain a cause for concern. If the price breaks below $67.26 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $70.41 mark may result into a pull-back move towards $71.22 level.

TGT shares accumulated 1.32 points or 1.93 percent on Friday to $69.61 with a light trade volume of 5.02 million shares. After opening the session at $68.3, the shares went as high as $70.04 and as low as $68.06, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $36.6 billion and now has 525.9 million shares outstanding. Target Corporation (TGT) stock has gained 4.24 percent of market value in 21 trading days.

TGT stock has a trailing 3-year beta of 0.65, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $5.21 a share in the trailing twelve months. The stock’s value has surged 5.33 percent year to date (YTD) against a decline of -1.58 percent in 12 month’s time. The company’s shares still trade -22.99 percent away from its 1-year high of $90.39 and 15.73 percent up from 52-week low of $60.15. The average consensus rating on the company is 2.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Target Corporation (TGT) are trading at a P/E ratio of 11.54 times earnings reported for the past 12 months. The industry TGT operates in has an average P/E of 25.51. Its P/E ratio went as low as 12.24X and as high as 19.08 over the 5-year span. Further, it is sporting a 0.49 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.32. 29.2 percent is the gross profit margin for Target Corporation and operating margin sits at 5.5 percent. Along with this, the net profit margin is 4.3 percent.

TGT will be showing off its Q4 earnings on March 05. Analysts are forecasting revenue to climb 1.2 percent to $23B in the next fiscal quarter, while earnings are seen soaring by nearly 10.95 percent to $1.52 per share. History has shown that shares in Target Corporation have gone up on 19 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.09 per share, worse than the $1.12, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $17.8B, in line with the $17.8B analysts expected. Earnings are estimated to increase by 0.7 percent this year, 3.99 percent next year and continue to increase by 8 percent annually for the next 5 years.