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
facebook twitter linkedin

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.




These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!


Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners