Target Corporation (TGT)

Target's stock price has experienced significant fluctuations in the past six months (January to June 2025). As of June 27, 2025, the share price was $99.23, representing a decline of 31.91% from July 1, 2024, when it was $145.74. The stock reached its 52-week low of $87.35 on April 8, 2025. A key event impacting Target's stock price in early 2025 was the announcement of a rollback of its Diversity, Equity, and Inclusion (DEI) initiatives, leading to widespread criticism and a consumer boycott. This decision caused the stock to drop by $27.27 per share by the end of February 2025, erasing approximately $12.4 billion in market value. This backlash also resulted in a class-action lawsuit alleging Target misled investors about the risks of altering its DEI policies. The consumer boycott and negative sentiment contributed to declining foot traffic and sales, with a 7.9% year-over-year drop in foot traffic for the week beginning March 31, 2025, marking the tenth consecutive week of declines.

Target's business experiences significant demand seasonality, particularly around major holidays and seasonal events. Target plans for this seasonal rise in demand by enhancing its omnichannel capabilities, including same-day delivery services like Drive Up and Order Pickup, and hires seasonal workers to support its existing team during these peak periods. Target adapts its merchandise offerings to changing consumer preferences throughout the year, launches marketing campaigns, introduces new seasonal products, and offers deals and discounts earlier in the holiday season to capture consumer spending.

Target Corporation is a prominent general merchandise retailer in the United States, recognized for its "Expect More, Pay Less" brand ethos. The company operates primarily within the Consumer Defensive sector, specifically in the Discount Stores industry. Target's business model focuses on delivering a gratifying in-store shopping experience and a wide product assortment at competitive prices. Target offers a diverse range of products across various categories, including apparel and accessories, home goods, electronics, beauty and personal care, grocery, health and wellness, hardlines, and household essentials. Beyond products, Target also offers services such as same-day delivery through Shipt and in-store pickup options. The company also generates revenue from in-store amenities and has exclusive design partnerships with brands such as Apple, Disney, and Ulta Beauty.

Target Corporation primarily operates in the United States, maintaining approximately 1,948 to 1,978 stores across all 50 states as of 2024. Its vast footprint is concentrated in urban and suburban markets, aiming to appeal to a more affluent consumer base. The company also operates 41 distribution centers across the U.S..

Target's brand reputation experienced a significant decline in the past year, particularly in early 2025, dropping from a score of 73.8 in December to 66.3 in January 2025 due to scaling back its Diversity, Equity, and Inclusion (DEI) initiatives, which triggered calls for boycotts. A similar reputational hit occurred in 2023, when Pride Month displays led to consumer backlash and boycotts, causing its reputation score to plunge from 76.9 in April to 60.9 in December 2023. The inability to meet certain stakeholder expectations, particularly regarding environmental, social, and governance initiatives, including DEI, has led to negative publicity and adversely affected Target's reputation.

Target Corporation's stock ownership is primarily dominated by institutional investors, holding approximately 86% of the shares. As of June 27, 2025, Target has 2,857 institutional owners and shareholders. Major institutional owners include Vanguard Group Inc., State Street Corp, and BlackRock, Inc. Individual investors, comprising the general public, hold about 14% ownership. Insider ownership is relatively low, around 0.24% to 0.72%.