Target Corp. (TGT) Drops Below $100 on Weak Outlook, CEO Change

We recently published 10 Stocks Crash as AI Glow Fades. Target Corp. (NYSE:TGT) is one of Wednesday’s worst performers.

Shares of Target Corp. (NYSE:TGT) fell back to the $99 level on Wednesday, as investors were dampened by a flurry of negative developments, including a weak outlook, a change in leadership, and lower price targets, among others.

At the close, the company declined by 6.33 percent to close at $98.69 apiece following a dismal earnings performance in the second quarter of the year. During the period, net income declined by 21.5 percent to $935 million from $1.19 billion in the same period last year.

Net sales, on the other hand, dipped by 0.9 percent to $25.2 billion from $25.45 billion year-on-year.

Following the results, Target Corp. (NYSE:TGT) maintained expectations of a low-single digit decline in sales, with GAAP earnings per share between $8 and $10, and adjusted EPS of $7 to $9.

Also on the same day, Target Corp. (NYSE:TGT) announced the transition to a new leadership with the appointment of Michael Fiddelke as its next CEO. He was set to replace Brian Cornell.

“He’s contributed meaningfully during times of change and played a critical role in establishing the differentiated capabilities that will continue to drive Target forward,” Cornell said in a statement.

Following the news, investment firm Jefferies further lowered its price target for the company to $115 from $120 previously, after already reducing it from $130 last May.

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