Target (tgt) – top picks considered by the investors podcast’s users discussions on investing forum – warren buffett and value investing


Hey guys, so Target just recently adjusted its fourth quarter guidance and it seemed to really have taken a toll on the stock price. 1 rmb to usd Their earnings are now expected to come out to $1.45 to $1.55 per share, down from $1.55 to $1.75. Today’s exchange rate usd to cad For the whole year, earnings are now expected to be $4.57 to $4.67, compared to the $4.67 to $4.87 outlook given a few months ago. Binary to text converter online It’s currently trading around $64 and I’m thinking there might be some value to be had here. Euro to dollar exchange rate 2015 Here are roughly, some of their current metrics:

They’re currently at a 52 week low after releasing their adjusted guidance and I’m thinking the massive sell off was an over reaction. Love quotes for girlfriend Throughout 2016 they had a $10 billion dollar share repurchase program and used $9.4 billion buying back their stock at an average price of $70.50 showing that management did a good job of buying their stock back throughout the year at its lower end of their price range, giving me some confidence in their management. Chf usd bloomberg For 2017 management has been authorized to use another $5 billion on share repurchases, which if they average the same buyback price at $70 that would reduce their outstanding shares by 715 million shares. Gender roles articles Over the past 11 years they’ve growth their Free Cash Flow at an average rate of 24% and over the past 5 years it’s grown by an average rate of about 35%. Funny quotes and sayings for facebook Target also has a great dividend history and has a 5-year dividend growth rate of 20% an 11-year growth rate of 38%. Exchange rate usd to malawi kwacha Their current dividend and yield are $2.40 and 3.77% and they plan to continue increasing their dividend.

Some other points of interest are how they have had a lot of insiders buying up the stock in January after the drop and recently filed a 13G filing on January 27th in which Blackrock increased their holdings of TGT from 3.82% of the outstanding shares up to 6.8% of the outstanding shares. Convert usd to inr Showing a lot of insiders and institutions buying up TGT stock after this massive drop in price.

I ran the stock through the Buffett Books DCF calculator with the following conservative metrics. Usa today sports page FCF of 3,393 ; FCF annual growth rate of 3% ; 10 years ; 10% discount rate ; 1% perpetuity growth rate ; 595 outstanding shares ; and current trading price of $64. Us to inr exchange rate today Giving me an intrinsic value of $71 and an 11% possible return.

Euro to pound conversion rate Considering the companies $5 billion share repurchase program (715 million shares at their average buyback price of $70) and that their free cash flow growth rate is much higher than the 3% I used I think the intrinsic value is higher than what the DCF calculated. Usd to rmb exchange rate Now those are a lot of pros I found with the stock but here are some cons.

They have had declining sales for the past few years which is due to the increase of online shopping however their online sales have been increasing at a rate greater than their competitors and at the same rate their in store sales have decreased. Stock market today futures I feel this is a huge area of threat for the stock with the rise of Amazon and what Amazon is looking to do with starting to sell groceries. Dollar exchange rate If Target can’t increase their online sales at the same ofrbetter rate that their in store sales are decreasing this could be a big problem for the company and investors. Pound to euro exchange rate today They also have a debt/equity of 1.09 and financial leverage of 3.49 which is higher than I would say most value investors like.

If anyone has any feedback or thoughts on Target it would be great to hear what the community has to say, or if I messed up any of my math please correct me! Thanks!