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Target executive officer sells over $997k in company stock

Published 01/10/2024, 06:58 am
TGT
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Target Corporation's (NYSE:TGT) Executive Officer Richard H. Gomez has sold a significant portion of his holdings in the company. According to a recent filing, Gomez parted with 6,348 shares of common stock at a price of $157.17 each, totaling over $997,715.

The transaction, which took place on September 27, reduces Gomez's direct ownership in the retail giant but still leaves him with a substantial stake. Post-sale, Gomez holds 123,551 shares directly. Additionally, he has an indirect holding of 365.7844 shares through Target's 401(k) Plan, as of the latest plan statement dated July 7, 2024.

Investors often keep a close eye on insider transactions such as these for insights into executive confidence and potential future performance of the company's stock. While the reasons behind Gomez's decision to sell are not disclosed in the filing, the transaction was executed with transparency and in accordance with regulatory requirements.

Target Corporation's stock continues to be actively traded, and developments such as these are of particular interest to current and potential shareholders. The company, headquartered in Minneapolis, Minnesota, has been a prominent player in the retail sector, operating under the SIC: Retail-Variety Stores [5331].

For those interested in the detailed holdings and transactions of Target's executives, such filings are publicly available and provide a snapshot of insider activity within the company.

In other recent news, Target Corporation has seen several significant developments. The company has appointed Jim Lee, a veteran from PepsiCo (NASDAQ:PEP), as its new Chief Financial Officer. This strategic move follows the promotion of the previous CFO, Michael Fiddelke, to Chief Operating Officer. Jefferies and TD Cowen have maintained their Buy and Hold ratings respectively on Target's shares, reflecting confidence in the company's growth prospects and financial stability.

Target has also reported strong Q2 results, with a 2% increase in comparable sales and a 42% surge in earnings per share, reaching $2.57. In addition, the company successfully completed a $750 million notes sale in an underwritten agreement with Deutsche Bank (ETR:DBKGn) Securities Inc., J.P. Morgan Securities LLC, and Wells Fargo (NYSE:WFC) Securities, LLC.

Finally, Mastercard (NYSE:MA) predicts a 3.2% rise in U.S. retail sales for the upcoming holiday season, with online sales expected to experience a significant 7.1% jump. These recent developments highlight Target's ongoing commitment to its strategic initiatives and financial stability.

InvestingPro Insights

While Richard H. Gomez's recent sale of Target Corporation (NYSE:TGT) shares may raise questions, a closer look at InvestingPro data reveals a more nuanced picture of the company's financial health and market position.

Target's stock currently trades at a P/E ratio of 15.99, which is relatively low compared to its near-term earnings growth potential. This is highlighted by one of the InvestingPro Tips, suggesting that the stock might be undervalued relative to its earnings prospects. Additionally, Target's PEG ratio of 0.49 for the last twelve months as of Q2 2025 further supports this view, indicating that the stock could be attractively priced given its growth expectations.

The company's financial stability is underscored by its ability to maintain dividend payments. An InvestingPro Tip notes that Target has raised its dividend for 54 consecutive years, demonstrating a strong commitment to shareholder returns. This is particularly impressive given the challenges faced by many retailers in recent years. The current dividend yield stands at 2.89%, which may be attractive to income-focused investors.

Target's revenue for the last twelve months as of Q2 2025 was $107.3 billion, with a gross profit of $30.5 billion. While revenue growth was slightly negative at -0.66% over this period, the company's EBITDA growth of 22.38% suggests improving operational efficiency.

It's worth noting that Target is considered a prominent player in the Consumer Staples Distribution & Retail industry, according to another InvestingPro Tip. This positioning, combined with the company's profitability over the last twelve months and analysts' predictions of continued profitability, may provide some context for the insider transaction.

For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 9 more tips available for Target Corporation. These additional tips could provide valuable context for understanding the company's current position and future prospects in light of recent insider activity.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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