Target Stock Stays Up Despite Price-Target Cuts

J.P. Morgan cut price target to $113

Assistant Editor
Mar 26, 2020 at 10:55 AM
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Target Corp (NYSE:TGT) is pushing through bear notes today, up 2.6% to trade at $93.44 this morning. Yesterday, Target withdrew its first quarter and fiscal year forecast due to the pandemic and delayed its remodeling to help with supplies for those who need it. Today, no less than three analysts have cut their price targets -- the lowest coming from J.P. Morgan to $113. 

The equity is now down 27% year-to-date. During the stock's broad market-induced slide, its 20-day moving average has kept a tight lid on any breakouts, including today's rally. In the last 12 months though, TGT is holding on to a 16.5% gain. 

Calls have been more popular than puts in the options pits. TGT's 50-day call/put volume ratio of 1.96 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 88% of readings from the past year, suggesting long calls are being picked up at a much quicker-than-usual rate. 

Plus, Target's Schaeffer's Volatility Scorecard (SVS) sits high at 99, showing that TGT's stock has tended to exceed option traders' volatility expectations during the past year, a good thing for option buyers. 

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