Target (NYSE:TGT) Lowered to Hold Rating by Zacks Research

Zacks Research downgraded shares of Target (NYSE:TGT) from a strong-buy rating to a hold rating in a research note issued to investors on Wednesday morning,Zacks.com reports.

Several other analysts also recently issued reports on TGT. Freedom Capital downgraded Target from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 20th. Weiss Ratings reissued a “hold (c)” rating on shares of Target in a research report on Friday, July 31st. Royal Bank Of Canada boosted their price objective on shares of Target from $166.00 to $178.00 and gave the stock an “outperform” rating in a research note on Thursday. Argus set a $150.00 target price on shares of Target in a research report on Friday, May 22nd. Finally, Roth Capital restated a “neutral” rating and set a $142.00 price target on shares of Target in a report on Thursday. Eleven equities research analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, Target presently has an average rating of “Hold” and an average price target of $159.52.

Target Stock Down 0.6%

TGT opened at $158.04 on Wednesday. The business has a 50-day moving average of $140.21 and a 200-day moving average of $127.75. Target has a fifty-two week low of $83.44 and a fifty-two week high of $161.98. The company has a market capitalization of $71.78 billion, a PE ratio of 16.41, a price-to-earnings-growth ratio of 2.09 and a beta of 0.97. The company has a debt-to-equity ratio of 0.80, a current ratio of 0.99 and a quick ratio of 0.30.

Target (NYSE:TGT) last posted its earnings results on Wednesday, August 19th. The retailer reported $4.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.35 by $1.76. The firm had revenue of $26.54 billion during the quarter, compared to analysts’ expectations of $26.13 billion. Target had a net margin of 4.08% and a return on equity of 23.23%. The company’s revenue was up 5.3% compared to the same quarter last year. During the same period in the previous year, the company earned $2.05 earnings per share. Target has set its FY 2026 guidance at 9.900-10.900 EPS. Equities research analysts forecast that Target will post 10.4 EPS for the current fiscal year.

Target Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Wednesday, August 12th will be issued a $1.16 dividend. This represents a $4.64 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend is Wednesday, August 12th. This is a boost from Target’s previous quarterly dividend of $1.14. Target’s payout ratio is currently 61.29%.

Insider Activity at Target

In related news, insider Cara A. Sylvester sold 10,000 shares of the business’s stock in a transaction on Friday, May 29th. The stock was sold at an average price of $125.89, for a total value of $1,258,900.00. Following the sale, the insider owned 45,930 shares of the company’s stock, valued at $5,782,127.70. The trade was a 17.88% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.13% of the stock is owned by company insiders.

Institutional Investors Weigh In On Target

Large investors have recently made changes to their positions in the company. Brighton Jones LLC increased its holdings in shares of Target by 101.3% during the fourth quarter. Brighton Jones LLC now owns 6,080 shares of the retailer’s stock worth $822,000 after buying an additional 3,059 shares in the last quarter. Woodline Partners LP grew its position in Target by 39.9% during the 1st quarter. Woodline Partners LP now owns 38,712 shares of the retailer’s stock worth $4,040,000 after acquiring an additional 11,047 shares during the last quarter. NewEdge Advisors LLC increased its holdings in Target by 22.8% during the 2nd quarter. NewEdge Advisors LLC now owns 69,660 shares of the retailer’s stock valued at $6,872,000 after purchasing an additional 12,948 shares in the last quarter. Sei Investments Co. increased its holdings in Target by 8.0% during the 2nd quarter. Sei Investments Co. now owns 190,860 shares of the retailer’s stock valued at $18,832,000 after purchasing an additional 14,195 shares in the last quarter. Finally, Treasurer of the State of North Carolina boosted its stake in Target by 11.0% in the second quarter. Treasurer of the State of North Carolina now owns 272,787 shares of the retailer’s stock worth $26,910,000 after purchasing an additional 27,063 shares in the last quarter. Institutional investors own 79.73% of the company’s stock.

Key Target News

Here are the key news stories impacting Target this week:

• Positive Sentiment: Q2 earnings and sales beat expectations. Target reported $26.54 billion in revenue, up 5.3% year over year and above the $26.13 billion consensus estimate. Reported EPS was $4.11 versus expectations of $2.35, while adjusted EPS was reported by some analysts at $2.46 versus a $2.30 estimate. Target Q2 earnings report
• Positive Sentiment: Consumer engagement improved. Guest traffic increased 3.6%, comparable sales rose 3.8%, and digital activity—including traffic from artificial-intelligence platforms—helped support stronger sales. Management also cited merchandising resets and improved execution as evidence that its turnaround is gaining traction. Target traffic and sales article
• Positive Sentiment: Target raised its fiscal 2026 guidance. The company increased its sales and earnings outlook, with current guidance calling for EPS of $9.90 to $10.90. Several analysts followed with higher price targets: RBC raised its target to $178 and maintained an outperform rating, while Citigroup and TD Cowen lifted targets to $160 but retained neutral or hold ratings.
• Neutral Sentiment: Analyst opinion remains mixed. The higher targets indicate improving confidence in the turnaround, but neutral, hold and sector-weight ratings suggest Wall Street believes much of the recovery may already be reflected in the shares.
• Negative Sentiment: Profit gains were partly boosted by a one-time benefit. A roughly $994 million tariff refund significantly increased quarterly profitability, raising questions about how sustainable the EPS improvement will be once that benefit fades. Target tariff refund analysis
• Negative Sentiment: Valuation and execution risks could limit further upside. With shares near their annual high and trading at approximately 16.4 times earnings, investors may demand continued sales, traffic and margin improvement. The elevated valuation leaves less room for disappointment if the turnaround loses momentum.

About Target

Target Corporation (NYSE: TGT) is a U.S.-based general merchandise retailer headquartered in Minneapolis, Minnesota. The company operates a network of full-line and small-format stores across the United States alongside a national e-commerce platform and mobile app. Target’s retail assortment spans apparel, home goods, electronics, groceries and household essentials, plus beauty, baby and pet categories. The firm complements national brands with a portfolio of owned and exclusive labels and partnerships that help differentiate its merchandise assortment.

Target traces its roots to the Dayton Company, founded by George Dayton in 1902; the Target discount chain was launched in 1962 and the parent company later adopted the Target Corporation name.