Target (NYSE:TGT) Shares Gap Down – Here’s What Happened

Target Corporation (NYSE:TGT)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $127.24, but opened at $120.21. Target shares last traded at $117.9130, with a volume of 5,366,465 shares trading hands.

Target News Roundup

Here are the key news stories impacting Target this week:

• Positive Sentiment: Target beat Wall Street on both earnings and revenue, posting Q1 EPS of $1.71 versus $1.46 expected and revenue of $25.44 billion versus $24.66 billion forecast. Target Corporation Reports First Quarter Earnings
• Positive Sentiment: Comparable sales growth was the strongest in four years, suggesting Target’s turnaround efforts, refreshed products, and store improvements are gaining traction with shoppers. Target Reports Strongest Sales Gain in Years
• Positive Sentiment: Management raised FY2026 revenue guidance to $108.5 billion-$109.5 billion, above consensus, which signals confidence in continued top-line improvement. Target Corporation Reports First Quarter Earnings
• Neutral Sentiment: Target also guided FY2026 EPS to $7.50-$8.50, a range that brackets analyst expectations and leaves some uncertainty about how much margin pressure may offset sales recovery. Target Corporation Reports First Quarter Earnings
• Negative Sentiment: Shares are falling because the company flagged cost headwinds, including pressure on margins, which is tempering enthusiasm despite the beat-and-raise quarter. Target tops forecasts but shares fall as retailer flags cost headwinds

Wall Street Analysts Forecast Growth

TGT has been the topic of a number of recent research reports. Morgan Stanley lifted their price target on Target from $125.00 to $145.00 and gave the company an “overweight” rating in a research note on Wednesday, March 4th. The Goldman Sachs Group lifted their price target on Target from $91.00 to $112.00 and gave the company a “neutral” rating in a research note on Wednesday, March 4th. BMO Capital Markets lifted their price target on Target from $105.00 to $130.00 and gave the company a “market perform” rating in a research note on Wednesday, March 4th. Royal Bank Of Canada reissued an “outperform” rating and set a $132.00 price target on shares of Target in a research note on Friday, May 8th. Finally, Truist Financial lifted their price target on Target from $121.00 to $123.00 and gave the company a “hold” rating in a research note on Wednesday, May 13th. Eleven equities research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $119.93.

Target Stock Down 4.0%

The company has a debt-to-equity ratio of 0.89, a current ratio of 0.94 and a quick ratio of 0.36. The company has a market capitalization of $55.49 billion, a P/E ratio of 15.09, a P/E/G ratio of 3.67 and a beta of 1.01. The stock has a 50-day moving average price of $122.19 and a 200-day moving average price of $109.05.

Target (NYSE:TGT) last issued its quarterly earnings data on Wednesday, May 20th. The retailer reported $1.71 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.46 by $0.25. The company had revenue of $25.44 billion during the quarter, compared to the consensus estimate of $24.66 billion. Target had a return on equity of 22.25% and a net margin of 3.54%.The firm’s revenue was up 6.7% compared to the same quarter last year. During the same period last year, the company earned $1.30 earnings per share. Target has set its FY 2026 guidance at 7.500-8.500 EPS. On average, research analysts predict that Target Corporation will post 8.05 EPS for the current fiscal year.

Target Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Wednesday, May 13th will be issued a $1.14 dividend. This represents a $4.56 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date is Wednesday, May 13th. Target’s payout ratio is presently 56.09%.

Insider Activity at Target

In other news, CAO Matthew A. Liegel sold 2,053 shares of the business’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $117.19, for a total transaction of $240,591.07. Following the completion of the sale, the chief accounting officer owned 12,143 shares in the company, valued at $1,423,038.17. The trade was a 14.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.16% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Target

Several hedge funds and other institutional investors have recently modified their holdings of the company. Western Wealth Management LLC increased its holdings in shares of Target by 142.5% during the first quarter. Western Wealth Management LLC now owns 6,590 shares of the retailer’s stock valued at $799,000 after acquiring an additional 3,872 shares in the last quarter. Edgestream Partners L.P. purchased a new position in shares of Target during the first quarter valued at approximately $455,000. Kentucky Retirement Systems boosted its position in shares of Target by 82.9% during the first quarter. Kentucky Retirement Systems now owns 52,186 shares of the retailer’s stock valued at $6,325,000 after buying an additional 23,649 shares during the last quarter. Janus Henderson Group PLC boosted its position in shares of Target by 41.5% during the first quarter. Janus Henderson Group PLC now owns 61,449 shares of the retailer’s stock valued at $7,439,000 after buying an additional 18,036 shares during the last quarter. Finally, Bull Harbor Capital LLC purchased a new position in shares of Target during the first quarter valued at approximately $1,060,000. Institutional investors own 79.73% of the company’s stock.

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.