Target Corporation Case Study Essay

undervalued—a belief that still was not fully reflected in the market price. At $19 5/8, the stock was

Target sells its products from the high end of the market to the low end depending on the type of product in question. In regards to Electronics items where the caption rate is small, they price their items at the high end to ensure they meet their margins. However, in regards to Target’s name brand items, they price those at the low end, keeping the company as a discounted retailer. Target also sells designer items that range from mid to high range of the market. In 2013 Targets CEO Gregg Steinhafel adopted the philosophy “a penny saved is a penny earned”. He further mentioned that they company would be a penny higher in price than their competitors Wal-Mart (Davis, M 2013). Steinhafel stated that “We want to be a penny

Target Corporation is a retail chain specializing in household goods, clothing, food, and accessories at discounted prices. The retail chain’s history started back in 1902 as Goodfellows and in 1910 as The Dayton Company. Initially, the chain specialized in “furnishings, fabrics and decorations for business and other public institutions” (“Target Corporation,” 2016, p. 5). Eventually, Target went public in 1967 and on to acquire Mervyn’s in the 1970s where they became the seventh largest retailer in the United States. Target operates in the United States, where it is headquartered in Minneapolis, Minnesota and as of January 31, 2015 Target employs over 300,000 people. “The company recorded revenues of $72,618 million in the financial year ended January 2015, the operating profit of the company was $4,535 million, [and] the net profit was $2,449 million” (“Target

Target Corporation, Target, is an exclusive retail discounter that provides on-trend, high quality merchandise at competitive prices in orderly and expansive guest-friendly stores. In addition to the retail stores, Target operates an online business, Target.com (Target.com, 2012). Target Corporation (NYSE:TGT) assists customers at 1,763 stores across the United States and also at Target.com. In 2013 the organization is planning to open their first stores in Canada. In addition to the retail segment, the organization operates a credit card subdivision that offers branded proprietary credit card products (Target.com, 2012). Target Corporation’s fiscal year ends on the Saturday nearest January 31st, unless otherwise stated. “References to

Based on the company’s 2013 annual report, Target’s fourth quarter reported net earnings of $520 million and total revenues of $21.5 billion. Compared to the results for the same period of the previous year, net earnings and total revenues in the fourth quarter of 2013 decreased by 46% and 5.3%, respectively. With regards to the second and third quarter of 2013, the fourth quarter is the only quarter which reported a decline in year-over-year revenue. 2013’s second and third quarter revenues all show higher total revenues compared to the previous year’s results. The only exception is in its 2013

Target currently pays a dividend out once a quarter and it’s currently at $.60 a share. In late September of 2016 Target began a $5 billion share repurchasing program. They are currently in good shape and should be able to spread the repurchasing plan out over a few

According to the Statement of Financial Position, Target is carrying a $9,034 million debt. So utilizing debt coupled with common and preferred stock, make up the majority of Target's capital structure. Of course, with debt comes risk. The fear and uncertainty of future earnings and operating income can sometimes come with a high price. For example, the interest rates may be unsuitable to take on debt to raise capital, therefore costing more than raising capital from equity.

The breach was disastrous. According to Dezenhall, Target reported that expenses incurred in 2014 relating to its 2013 data breach totaled over $252 million. In addition, Target’s profits following the breach declined by 50% compared to the same period the year before and its stock price also fell 10% (from $62 before the crisis to $56) one month later. Target also remains in litigation with the major credit card companies and regulatory that fallout from the 2013 data breach. For Target, the huge loss led to the fall of Gregg Steinhafel and other

Target is further ahead on its reversal attempts than Wal-Mart, which cautioned that benefits will miss its objective this year. Wal-Mart had $120 billion in worldwide income contrasted and $17 billion for Target. Target's spending intensely to staff stores and slice costs to produce even humble deals

Based on the company’s 2013 annual report, Target’s fourth quarter reported net earnings of $520 million dollars and revenues of $21.5 billion dollars. Compared to the results for the same period in the previous year, net earnings and total revenues in fourth quarter 2013 decreased by 46% and 5.3%, respectively. With regards to the second and third quarter of 2013, the fourth quarter is the only quarter which reported a decline in year-over-year revenue. 2013’s second and third quarter revenues all show an increase in total revenue compared to the previous year’s results. The only exception is in its 2013 first quarter, which failed to break the prior year’s first quarter

Target Corporation is having a very stable financial policy and dividend policy. From the historical financial data, Target had debt $11,044M, $11,202M, $10,599M, $17,471M, and $19,882M in the year of 2005,2006,2007,2008, and 2009 respectively. The long-term debt/equity ratio rises from 69.34% to 108%.

A “dividend yield is a stock’s dividend as a percentage of the stock price” (Dividend Yield 2018). As a measurement of an investment’s productivity, a higher dividend yield signifies corporate stability. In other words, companies who can disburse divdends are considered more stable and low-risk investments. Home Depot’s dividends yields for 2012, 2013, and 2014 are 2.30%, 2.20%, and 2.30% respectively, while the dividend per shares are $1.16, $1.56, and $1.88 respectively. If Home Depot increases its dividend per share by $1.75, the figures increase to $2.91 in 2012, $3.31 in 2013, and $3.63 in 2014. The impact that occurs on dividend share after increasing

The company recently increased its quarterly dividends by over 7% to $0.43 a share and it is highly expected that MKC will make another dividend increase in the coming few quarters.

Despite the company’s weak growth in EPS during the most recent fiscal years due to poor revenue figures. Analysts on wall streets are confident in setting a high target price for CST.

Target Corporation, according to their website is the second-largest discount store retailer in the United States, behind Walmart. On November 24th, I decided to buy 100 shares in TGT at the price of $55.86 per share. I decided to purchase a large amount of shares in this company because I felt that the stock would increase because on that day, it is the biggest shopping day of the year every year for target, which is black Friday. I figured that if they are receiving a lot of business, their stock price has to increase. By the near end of the stock market game, on December 4th, Target stock had increased to 62.49 per share which made me a profit of $663. I believe this rise in stock price be partially attributed to black Friday. Target stock ended up being one of the investments that made me the most money by the end of the stock market game. Due to the large number of shares I purchased, 100, this allowed my investment to grow even more which made me a large profit.