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Target Stock Sinks on Weak Revenue, Outlook

TGT sinks lower amid efforts to compete with e-commerce market

Deputy Editor
Mar 3, 2020 at 10:50 AM
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Target Crop (NYSE:TGT) has been in sell-off mode since last week's broad-market pullback. Shares of the retail giant are continuing the trend today, down 2% at $106.88, after battling the falling demand for toys and electronics. This, paired with competition the brick-and-mortar retailer is facing amid a consumer-base that leans toward e-commerce, pushed the company to report weaker-than-expected fourth-quarter revenue and full-year outlook.

On the charts, Target stock has been experiencing a decline since hitting an all-time high just above the $130 level in December. What's more, on Jan. 19, the equity breached support at its 120-day moving average, leading to its now 16.5% year-to-date deficit.

While TGT continues the battle of survival amidst a market flooded with convenience-oriented, e-commerce shops, most analysts are still riding the optimism train on its equity. Out of 20 analysts, 13 call it a “strong buy” and seven sport a “hold” rating.

In the options pits, Target’s 10-day call/put volume ratio of 3.67 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 94% of all other readings from the past 12 months. In simpler terms, calls have been purchased over puts at a faster-than-usual clip.

 
 

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