Target (TGT) investors have seen the company’s stock go through a prolonged downturn over recent months. Unfortunately, this trend appears to be continuing.
On February 28, Target reported earnings that seriously disappointed. The stock fell from $67 to $57.50, and currently sits around ~$59.
It is important to remember that Target’s stock price is not necessarily indicative of the company’s actually per-share value.
Sometimes, stock prices become irrationally disconnected from the value of the underlying business. This is a good thing for the opportunistic investors.
It’s important to remember that Target is a high quality business with a strong history of rewarding shareholders. Target has raised its annual dividend payments for 46 consecutive years, which makes them a member of the elite Dividend Aristocrats (companies with 25+ years of rising dividends).
This article will discuss why Target’s decline presents a buying opportunity, rather than a reason for investors to fear.