Target Corporation (TGT): Technical Analysis Suggests You Should Hold

The stock of Target Corporation (NYSE:TGT) increased by increased by $1.72 on Friday to finish at $255.93, up 0.68 percent. The last five days have seen an average of 2,748,720 shares of common stock traded. 53 times new highs were reached in the current year, with a gain of $79.40. The average number of shares traded over the last 20 days was 3,025,055, while the average volume over the last 50 days totaled 3,081,948.

TGT stock appreciated 5.46% since last month. On 10/04/21, the company’s shares reached a one-month low of $222.88. The stock touched a high of $267.06 on 08/11/21, after rallying from a low of $150.80 in 52 weeks. The price of TGT stock has risen by 44.98% or $79.40 this year, reaching a new high 53 times. Still, the stock price is down -4.17% from the 52-week high.


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Insider Transactions

There have been 53 days since Target Corporation (TGT) last reported insider trading activity on Sep 02. On Sep 02, Executive Officer Cornell Brian C sold 25,000 shares at $245.98 each. This transaction resulted in the insider making $6,149,467. On Aug 19, Mulligan John J sold 80,782 shares at a price of US$247.20. After the transaction, the insider now owns 211,012 shares. Executive Officer LIU DON H had earlier sold 3,000 shares on Aug 06 for $261.93 a share. The transaction was completed for $785,790.

Valuation Metrics

Target Corporation (TGT) has a trailing price-to-earnings (P/E) ratio of 20.39. This level actually compares favorably with the industry at large, as the PE for the Discount Stores industry stands at about 32.69. Further, its PE also compares favorably with the Consumer Defensive sector’s trailing 12 months PE ratio, which comes in at 25.23 right now. The PE ratio of Target Corporation has varied between 26.37 and 10.17 in the last five years. Beta for the stock is 1.02. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 1.24, the price-to-book (PB) ratio of 8.49, and the price-to-cash flow ratio of 25.31.

Target Corporation’s dividend is $3.60 per share per year. With a dividend yield of 1.41%, TGT has a payout ratio of 21.50%. Company paid $0.90 per share in dividends, remained unchanged from $0.90 last year. A $0.22 dividend increase was reported on Wednesday June 9 2021, making it the 50 consecutive year the dividend has increased. Over the last three years, dividends have increased by -18.03%.

For the three months ended July 30, Target Corporation’s quick ratio was 0.50, while its current ratio was 1.00, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending July 30 is 0.78, and the total debt to equity ratio is 0.86. As far as profitability goes, gross margin for the trailing twelve months is 30.20% percent. Target Corporation’s EBITDA margin for the year ended July 30 was 9.95%, whereas its operating margin stood at 8.40% for the same period. Based on annual data, it had gross profit of $27.38 billion and revenue of $93.56 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. TGT’s return on assets (ROA) during the last 12 months has been 12.40%. There was a 17.90% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 43.80%. ROE has averaged 11.26 in the past year for the broader industry.

Earnings Surprise

According to Target Corporation’s quarterly financial report for the quarter that ended July 30. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $25.16 billion, while revenues rose by 8.68% to $24.2 billion. It was predicted that Target Corporation’s quarterly earnings would be $3.64, but it ended up being $3.49, beating the consensus by 4.30%. EBITDA was $3.1 billion for the quarter. At the end of Target Corporation’s most recent quarter ended July 30, its liabilities totaled 36.52 billion, while its total debt was $15.47 billion. Equity owned by shareholders amounts to $488.04 million.

Technical Picture

Here’s a quick look at Target Corporation’s (TGT) price momentum from a technical perspective. As of 22 October, the RSI 9-day stood at 78.41%, suggesting the stock is Overbought, with a 16.25% historical volatility rate.

The stochastic %K and %D were 90.80% and 89.56% respectively, while the average true range (ATR) was 4.60. Based on the 14-day stochastic reading of 95.46%, the RSI (14) reading is 70.05%. On the 9-day MACD Oscillator, the stock is at 7.03, and the 14-day reading is at 13.67.

Analyst Ratings

In its most recent analyst report, UBS raised its rating on Target Corporation (NYSE: TGT) to a Buy. Prior to this, analysts firm rated the stock as a Neutral. Analysts have assigned Target Corporation (TGT) an Overweight rating. TGT is a stock that is recommended for selling by 1 brokerage firm, while 6 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 3 rates it overweight and 20 others recommend it as a buy.

What is TGT’s price target for the next 12 months?

The current consensus forecast for the stock is between $176.00 and $337.00, with a median target price of $285.00. In analyzing these forecasts, the average price target given by analysts for Target Corporation (TGT) is $281.48.

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