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Target Goes Against the Grain, Moves Higher After Quarterly Report

Puts have been popular among the retailer's options traders

Managing Editor
May 22, 2019 at 9:44 AM
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Despite the retail sector seeing earnings-related weakness this week, shares of Target Corporation (NYSE:TGT) have already gapped 7% higher, to trade at $76.68. Target this morning reported a first-quarter earnings and same-store sales beat, citing same-day fulfillment services for its digital strength especially. The company also shared plans to remodel 300 stores by the end of 2019. 

On the charts TGT has pulled back in recent weeks, but just yesterday inched its way higher and managed to close within a chip-shot of its 120-day moving average. Following today's surge, Target stock will be back in positive territory on a year-over-year basis, though puts are continuing to fly off the shelves.

While analysts have yet to respond to today's impressive beat, those covering the retailer held a bearish consensus coming into today. Specifically, 12 of 20 brokerages sport "hold" recommendations, though not a single "sell" in on the books, while the average 12-month price target stands up at $85.33.

 

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