Trader Alert: Unusual Volume Spotted in Target Corporation (NYSE:TGT)

Analysts, polled by Thomson Reuters, expected $5.34 in per-share earnings.

Target laid out its plans as it reported disappointing earnings for the quarter that included the crucial holiday season. Company stock has moved down -12.21% since the open, landing shares on today’s list of top losers.

Target’s increased focus on small-format stores will yield more than 100 such locations expected to open within three years.

Nonetheless, and in the immediate aftermath of reporting, investor reaction in Target Corporation (TGT) stock has proven to be much more bearish. Guggenheim reissued a “neutral” rating on shares of Target Corporation in a research note on Wednesday, December 28th. Target also is testing technology that would alert staff when customers arrive to collect online orders to speed their trips through the store, Mulligan said. But Cornell told investors those efforts weren’t enough given the accelerating shift of shoppers to online. The real problem reveals itself when we break down Target’s weak comparable store sales figures.

On the plus side, O’Shea said that lowering prices on food and other household essentials should help Target drive traffic to its stores, while still allowing it to charge a premium for its exclusive apparel and home goods products.

“Our fourth quarter results reflect the impact of rapidly-changing consumer behavior, which drove very strong digital growth but unexpected softness in our stores”, Target Chief Executive Brian Cornell said in a statement.

Part of Target’s revenue decline is explained by its decision to sell its pharmacy business to CVS Health Corp. It now has 32 of these stores, which are tailored to their specific communities. But while going-out-of-business sales will pull consumers away in the short term, “we know there will be meaningful opportunity to capture new market share”, he said. The company announced plans to launch more than 12 new brands in the next two years, which the retailer says will represent more than $10 billion in sales.

For the full year 2017, Target sees EPS of $3.80-4.20, also significantly below analysts’ view of $5.33. Let’s take a closer look at the current earnings forecast, particularly the things traders should pay close attention to. Stockman Wealth Management Inc. raised its stake in shares of Target Corporation by 3.9% in the fourth quarter. For TGT, the company now has $1.23 Billion of cash on the books, which is offset by $729 Million current liabilities.

The company expects earnings for the first quarter and the full fiscal year will be lower than what Wall Street analysts were predicting. It was also well below the $1.43 billion, or $2.31 per share, that the company reported previous year. Comparable sales dropped 1.5%, a number that would have been 1.8 percentage points worse if not for strong digital sales.

The pain is spread across the retail sector, even though rival Wal-Mart has had some success. One solution Macy’s and J.C. Penney have opted for is closing stores.

Cornell said he hasn’t seen as many troubled retailers since the recession almost a decade ago.

This company has been competing with others in the Services space and offers its own combination of interesting factors Target Corporation (TGT) now trades with a market capitalization of $38.15 Billion.