Target Corporation (TGT): Analysts Giving Thumbs Up or Thumbs Down?

Here’s how investors should make decisions about buying, holding or selling Target Corporation (NYSE:TGT) stock. On Tuesday, shares of Target Corporation (NYSE:TGT) closed higher after an active session. The shares accumulated 0.26 points or 0.37 percent at $70.41 with a light trade volume of 4.505 million shares. After opening the session at $70.7, the shares went as high as $71.18 and as low as $70.26, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $37.3 billion and now has 529.05 million shares outstanding. Target Corporation (TGT) stock has gained 1.15 percent of market value in 21 trading days.

TGT stock has a trailing 3-year beta of 0.66, 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 6.54 percent year to date (YTD) against a decline of -2.82 percent in 12 month’s time. The company’s shares still trade -22.1 percent away from its 1-year high of $90.39 and 17.06 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.

Target Corporation (TGT) will probably climb 16.63 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $110 price as 12-month high target. This represents a whopping 56.23 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 12.2 percent when compared to the closing price of the stock of $70.41 on Tuesday, February 12. The lowest price target for the stock is $60 — slightly more than -14.78 percent from TGT’s current share price.

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. Investors will get their next glimpse of TGT’s Q4 earnings on March 05. Analysts are forecasting revenue to climb 0.9 percent to $23B in the fiscal fourth quarter, while earnings are seen soaring by nearly 10.95 percent to $1.52 per share. 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, 4.08 percent next year and continue to increase by 8 percent annually for the next 5 years.

Let’s take a look at some insider activity at Target Corporation (NYSE:TGT) and see the pattern. 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 -18.13 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 -19.99 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 -18.8 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 -11.24 percent since the reporting date. Ward Laysha now left with a stake of 55 thousand TGT stock worth $3.87 million after the insider selling.

The stock is currently hovering around the first support level of $70.05. Below this, the next support is placed in the zone of $69.7. Till the time, the TGT stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 49.21 on daily chart, which may remain a cause for concern. If the price breaks below $69.7 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $70.97 mark may result into a pull-back move towards $71.54 level.

Shares of Target Corporation (TGT) are trading at a P/E ratio of 13.47 times earnings reported for the past 12 months. The industry TGT operates in has an average P/E of 24.28. Its P/E ratio went as low as 13.49X and as high as 19.08 over the 5-year span.Further, it is sporting a 0.5 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.19. 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.