Investors Purchase Large Volume of Target Call Options (NYSE:TGT)

Target Corporation (NYSE:TGT) saw unusually large options trading activity on Monday. Stock investors bought 273,676 call options on the stock. This represents an increase of 1,197% compared to the typical daily volume of 21,093 call options.

Target Stock Performance

Shares of NYSE:TGT traded up $7.50 during trading on Monday, reaching $165.91. The stock had a trading volume of 3,574,105 shares, compared to its average volume of 5,040,058. The company has a quick ratio of 0.36, a current ratio of 0.99 and a debt-to-equity ratio of 0.80. Target has a 52 week low of $83.44 and a 52 week high of $170.75. The stock has a fifty day simple moving average of $156.41 and a two-hundred day simple moving average of $135.02. The firm has a market capitalization of $75.37 billion, a price-to-earnings ratio of 17.23, a P/E/G ratio of 2.93 and a beta of 0.94.

Target (NYSE:TGT) last issued its earnings results on Wednesday, August 19th. The retailer reported $4.11 EPS for the quarter, beating analysts’ consensus estimates of $2.35 by $1.76. Target had a return on equity of 23.23% and a net margin of 4.08%. The business had revenue of $26.54 billion during the quarter, compared to analyst estimates of $26.13 billion. During the same period in the prior year, the company posted $2.05 earnings per share. Target’s revenue was up 5.3% on a year-over-year basis. Target has set its FY 2026 guidance at 9.900-10.900 EPS. As a group, analysts anticipate that Target will post 8.91 earnings per share for the current fiscal year.

Target Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Wednesday, November 11th will be given a dividend of $1.16 per share. The ex-dividend date is Tuesday, November 10th. This represents a $4.64 annualized dividend and a dividend yield of 2.8%. Target’s payout ratio is currently 48.18%.

Insiders Place Their Bets

In other Target news, CAO Matthew Liegel sold 926 shares of the company’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $163.51, for a total value of $151,410.26. Following the sale, the chief accounting officer owned 12,266 shares of the company’s stock, valued at approximately $2,005,613.66. This represents a 7.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Melissa Kremer sold 15,500 shares of the stock in a transaction on Monday, August 24th. The shares were sold at an average price of $169.96, for a total value of $2,634,380.00. Following the sale, the insider owned 56,981 shares in the company, valued at approximately $9,684,490.76. This trade represents a 21.38% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.13% of the company’s stock.

Institutional Trading of Target

A number of hedge funds have recently modified their holdings of TGT. BlackRock Inc. acquired a new stake in shares of Target in the second quarter valued at approximately $5,054,604,000. Bank of New York Mellon Corp acquired a new position in Target during the second quarter valued at approximately $831,466,000. Dimensional Fund Advisors LP boosted its position in Target by 8.2% during the first quarter. Dimensional Fund Advisors LP now owns 5,413,840 shares of the retailer’s stock valued at $656,091,000 after purchasing an additional 411,608 shares during the last quarter. Bank of America Corp DE boosted its position in Target by 1.8% during the second quarter. Bank of America Corp DE now owns 4,575,880 shares of the retailer’s stock valued at $597,656,000 after purchasing an additional 82,268 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in Target by 12.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,514,522 shares of the retailer’s stock valued at $589,642,000 after purchasing an additional 514,155 shares in the last quarter. 79.73% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research analysts have issued reports on TGT shares. TD Cowen began coverage on shares of Target in a research note on Friday, October 30th. They set a “hold” rating and a $160.00 target price for the company. Bank of America restated an “underperform” rating and issued a $124.00 target price (up from $110.00) on shares of Target in a research report on Wednesday, August 12th. Citigroup lifted their target price on Target from $148.00 to $160.00 and gave the company a “neutral” rating in a research note on Thursday, August 20th. Piper Sandler increased their price target on Target from $146.00 to $153.00 and gave the stock a “neutral” rating in a research note on Thursday, August 20th. Finally, Truist Financial raised their price target on Target from $147.00 to $167.00 and gave the company a “hold” rating in a report on Thursday, August 20th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, seventeen have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $161.70.

About Target

Target Corporation is a U.S. general merchandise retailer that sells products through its stores and digital channels. Its assortment includes apparel and accessories, beauty products, home goods, groceries, electronics, toys, and household essentials, along with merchandise from national brands and Target-owned brands.

The company also offers services such as in-store and curbside order pickup and same-day delivery in eligible areas. Target serves customers across the United States.

The company traces its history to the Dayton Dry Goods Company, founded in Minneapolis in 1902.