Insiders Donald Knauss, Don Liu and Cathy Smith purchased shares of Target Corp. (TGT, Financial) from March 1 to March 9, according to SEC filings.
Knauss, director and 10% owner, purchased 10,000 shares on March 9 for $54.87 per share. He now owns a total of 16,431 shares.
Liu, executive vice president, chief legal officer and corporate secretary, purchased 2,000 shares of Target on March 2 for $58.20 per share. He then bought an additonal 2,000 shares on March 6 for $57 per share. He now owns a total of 56,983 shares.
Smith, executive vice president and chief financial officer, purchased 5,000 shares on March 1 for $58.95 per share. She now owns a total of 30,686 shares.
Target owns and operates a popular retail chain that sells general merchandise and a full assortment of food products. The company also operates SuperTarget stores with a line of food and general merchandise items.
Founded in 1902 by George Draper Dayton, the company is one of the largest retailers in North America. It is headquartered in Minneapolis.
Since 1946, the company has given 5% of its profit to communities.
On Jan. 15, 2015, the company announced its exit from the Canadian market and closed all of its stores there. Target continues to ship items internationally via its website.
Target has a market cap of $30.83 billion, a price-earnings (P/E) ratio of 11.84, an enterprise value of $41.07 billion and a price-book (P/B) ratio of 2.83.
According to GuruFocus, Target has a 5 of 10 financial strength rating with a cash-debt ratio of 0.2, an equity-asset ratio of 0.3 and an interest coverage ratio of 4.95.
The company has a 7 of 10 profitability and growth rating. It has an operating margin of 7.15%, a net margin of 3.94%, a return on assets (ROA) of 7.07% and a return on capital (ROC) of 19.91%.
Target has several good indicators that may appear attractive to investors:
- Target has shown predictable revenue per share. Over the past five years, the average revenue per share growth rate was 2.8% per year. Over the past 10 years, the average revenue per share growth rate was 5.8%.
- The company’s dividend yield is close to its 10-year high. It is paying a dividend yield of 4.23%, ranking higher than 80% of the 461 companies in the global discount industry. Target has issued a dividend for 45 consecutive years.
- Target was approaching its two-year low in price at the time insiders purchased shares.
- The P/E ratio is 12.15 and is close to its five-year low of 12.01.
- Target is trading below its intrinsic value, according to the Peter Lynch chart below
Disclosure: Author does not own any shares of this company.
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