Target (NYSE:TGT) Sets New 12-Month High on Better-Than-Expected Earnings

Target Corporation (NYSE:TGT)’s share price hit a new 52-week high during trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $160.77 and last traded at $160.8940, with a volume of 2362522 shares traded. The stock had previously closed at $152.48.

The retailer reported $4.11 earnings per share for the quarter, topping the consensus estimate of $2.35 by $1.76. Target had a return on equity of 22.92% and a net margin of 3.24%.The firm had revenue of $26.54 billion for the quarter, compared to analyst estimates of $26.13 billion. During the same quarter in the previous year, the firm earned $2.05 EPS. The business’s quarterly revenue was up 5.3% on a year-over-year basis. Target has set its FY 2026 guidance at 9.900-10.900 EPS.

Target Increases Dividend

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

Key Stories Impacting Target

Here are the key news stories impacting Target this week:

• Positive Sentiment: Quarterly results exceeded expectations: Second-quarter sales rose 5.3% year over year to $26.54 billion, ahead of the $26.13 billion consensus estimate. Reported EPS also surpassed forecasts, with sources citing figures of $4.11 and $2.46 versus estimates near $2.30-$2.35. Target boosts 2026 outlook after Q2 sales and earnings beat
• Positive Sentiment: Improved customer traffic and comparable sales: Comparable sales increased 3.8%, supported by a 3.6% rise in comparable traffic. Target said lower prices and refreshed merchandise are attracting consumers, while two-year sales growth accelerated from the prior quarter. Target Corporation Reports Second Quarter Earnings
• Positive Sentiment: Guidance was raised: Target now expects fiscal 2026 EPS of $9.90-$10.90 and revenue of approximately $110 billion, above consensus expectations of $7.72 EPS and $106.4 billion in revenue. Management also projected roughly 5% full-year sales growth. Target lifts annual forecasts again
• Positive Sentiment: Analyst support strengthened: DA Davidson raised its price target on TGT from $155 to $170 and maintained a buy rating, signaling potential additional upside after the earnings beat.
• Neutral Sentiment: About $1 billion of quarterly profit reportedly benefited from tariff refunds. This boosted results but may be viewed as a one-time benefit rather than an indication of recurring earnings power. Target raises fiscal-year forecast
• Negative Sentiment: Investors remain cautious because Target faces elevated costs, difficult comparisons and questions about whether its improved sales momentum can persist. The stock’s rally of more than 55% this year also raises the risk of profit-taking if future results fail to match expectations. Target second-quarter earnings preview

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. Freedom Capital cut shares of Target from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 20th. Weiss Ratings restated a “hold (c)” rating on shares of Target in a research note on Friday, July 31st. Wolfe Research set a $169.00 target price on shares of Target in a report on Monday, August 3rd. Roth Capital reiterated a “neutral” rating and issued a $114.00 target price on shares of Target in a research note on Friday, May 22nd. Finally, KeyCorp reiterated a “sector weight” rating on shares of Target in a report on Thursday, May 21st. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, sixteen have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $143.85.

Insider Activity

In other Target news, insider Cara A. Sylvester sold 10,000 shares of the stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $125.89, for a total transaction of $1,258,900.00. Following the transaction, the insider owned 45,930 shares in the company, valued at $5,782,127.70. This represents a 17.88% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.13% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Target

Institutional investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new position in Target in the 2nd quarter valued at about $5,054,604,000. Bank of New York Mellon Corp acquired a new position in shares of Target in the 2nd quarter valued at approximately $831,466,000. Norges Bank bought a new stake in shares of Target during the 4th quarter worth approximately $587,903,000. TOMS Capital Investment Management LP bought a new stake in shares of Target during the 4th quarter worth approximately $257,571,000. Finally, Jupiter Topco LLC acquired a new stake in shares of Target during the 2nd quarter worth approximately $320,006,000. 79.73% of the stock is currently owned by institutional investors.

Target Price Performance

The company has a current ratio of 0.93, a quick ratio of 0.30 and a debt-to-equity ratio of 0.87. The firm has a market cap of $72.32 billion, a price-to-earnings ratio of 21.04, a price-to-earnings-growth ratio of 2.51 and a beta of 0.96. The company’s 50-day moving average is $139.08 and its 200-day moving average is $126.98.

Target Company Profile

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.