NEW YORK, Dec. 28, 2025, 10:33 a.m. ET — Market closed
Target Corporation (NYSE: TGT) heads into the final trading days of 2025 with fresh momentum after a headline-driven pop late last week, even as U.S. equity markets are closed Sunday and won’t reopen for regular trading until Monday.
Shares of Target finished Friday, Dec. 26 at $99.55, up 3.13% on the day, after trading as high as $103.03 in a volatile, light-volume post-Christmas session. The stock was little changed in late trading, with after-hours quotes near $99.52. [1]
The catalyst: a report that activist hedge fund Toms Capital Investment Management (TCIM) has taken a “significant” stake in Target—an investment whose size and demands were not disclosed. The prospect of shareholder activism helped push Target among the day’s notable movers, even while the broader market was largely treading water. [2]
Why Target stock jumped: TCIM enters the picture
Reuters reported Friday that TCIM has made a significant investment in Target, citing a Financial Times report, but noted that the stake size was not disclosed and the report did not spell out what TCIM may ask for. [3]
Target, for its part, emphasized continuity—telling Reuters it maintains ongoing dialogue with investors and that its priority is “getting back to growth.” [4]
Investopedia’s recap of the same development underscored a key market dynamic: activists are often drawn to “pulled lower” stocks where their presence (and potential playbook) can pressure management and the board to accelerate change. Investopedia also highlighted Target’s statement that its growth plan is rooted in three priorities: merchandising authority, an elevated shopping experience, and technology. [5]
The bigger context: Target’s 2025 slide set the stage
Target’s rally came after a difficult year for the stock. Reuters noted Target has posted three straight quarters of falling comparable sales, and said the shares have lost more than 28% of their value in 2025—an underperformance that’s kept the company in the crosshairs of investors looking for a reset. [6]
That backdrop matters because it shapes what “activism” can realistically accomplish. A stake can lift sentiment quickly, but the longer-term direction will depend on whether Target can prove it can regain share, stabilize traffic, and deliver cleaner execution in a consumer environment that remains value-sensitive.
Incoming CEO Michael Fiddelke faces an early test
TCIM’s reported arrival lands as Target navigates a major leadership transition. Reuters described the activist pressure as a “first major test” for Michael Fiddelke, who is slated to become CEO in February 2026, while current CEO Brian Cornell is expected to become executive chairman—an arrangement that has drawn governance scrutiny. [7]
One of the most pointed responses came from Matt Prescott, president of the nonprofit shareholder activist group The Accountability Board, which has urged Target to appoint an independent chair. Prescott said the reported TCIM stake signals investors are “hungry for change,” arguing it could strengthen the case for their proposal. [8]
For shareholders, the immediate watch item is whether TCIM becomes publicly more specific—either through direct engagement, board-related moves, or regulatory filings that clarify the stake and intentions.
The “real estate lever” is back on the table—again
One reason Target often attracts activist “what’s-the-hidden-value” debates is its owned real estate footprint. Reuters cited UBS analyst Michael Lasser, who estimated Target owns about 75% of its real estate, including land—an asset base that can tempt activists to propose monetization strategies. [9]
But not everyone sees real estate financial engineering as the right answer.
Neil Saunders, managing director at retail research firm GlobalData, warned via email to Reuters that a real estate selloff could produce only short-term gains and distract management. Saunders argued Target needs a fundamentals-first overhaul—products, stores, prices, and selling methods—rather than “financial games.” [10]
That debate is central to how investors may frame “TCIM optionality”:
- Bull case: activism accelerates sharper accountability, tighter capital allocation, faster operational fixes, and potentially value-unlocking moves.
- Bear case: activism becomes a distraction, focusing attention on financial structure over retail execution—especially during a period when Target’s core business needs measurable improvement.
What Target has already put on the table
Target isn’t standing still. Reuters reported the retailer laid out plans to spend an additional $1 billion in 2026 on new store openings and remodels, and also cut 1,800 corporate roles as part of a restructuring. [11]
For a large-format retailer with nearly 2,000 stores, capital intensity is part of the model. The question for markets is whether that spending translates into better in-stock performance, improved store conditions, stronger digital execution, and a clearer price/value narrative that can compete more effectively across income cohorts.
Wall Street’s forecast: “Neutral/Hold” tone, wide range of outcomes
Consensus snapshots show a market that’s not uniformly bearish—but far from convinced.
- Investing.com lists a “Neutral” consensus rating (based on 33 analysts) and an average 12‑month price target near $97.21, with estimates ranging from $63 (low) to $130 (high). [12]
- TipRanks shows an average price target around $99.23 (based on analysts issuing targets in the prior three months), essentially in line with Target’s latest close, with a high forecast of $126 and a low of $80. [13]
- Fintel pegs an average one-year price target around $100.90, with a broad range from roughly the mid‑$60s to the mid‑$140s. [14]
The takeaway for investors: analysts’ “center of gravity” sits close to the current price, but the range is extremely wide—suggesting uncertainty about whether Target is nearing an inflection point or still searching for it.
Investopedia also cited Visible Alpha data indicating a mean price target “a bit above $94” at the time of its update—below Target’s prior close—another sign of a cautious baseline view even after Friday’s bounce. [15]
Dividend profile: a key part of the TGT investment case
While the stock has been volatile, Target’s dividend remains a major pillar for long-term holders.
Target announced in September that its board declared a quarterly dividend of $1.14 per share, payable Dec. 1, 2025, to shareholders of record as of Nov. 12, 2025. [16]
Third-party tracking from Stock Analysis lists Target’s annual dividend at $4.56 per share, implying a dividend yield around 4.6% at recent prices, with the last ex-dividend date shown as Nov. 12, 2025. [17]
For near-term trading, the dividend isn’t the driver. But for longer-term positioning—especially in a “Hold” consensus environment—the yield can materially influence total-return expectations.
Broader market backdrop: year-end trading, thin liquidity, and the Fed in focus
Target’s move happened in a broader market that has been sensitive to year-end positioning and light liquidity.
On Friday, Reuters reported U.S. stocks finished a quiet session nearly unchanged, with major indexes slightly lower after a multi-day rally. Market strategist Ryan Detrick of Carson Group described the action as markets “catching our breath” after a strong run and noted traders are watching the seasonal “Santa Claus rally” window. [18]
Looking ahead to the next sessions, Reuters’ “Week Ahead” coverage pointed to two themes that can matter for consumer-discretionary names like Target:
- Fed minutes and rate expectations. Reuters noted Fed minutes in the holiday-shortened week ahead could shed more light on the rate outlook, and quoted Paul Nolte (Murphy & Sylvest), Michael Reynolds (Glenmede), and Anthony Saglimbene (Ameriprise) on bullish momentum, the importance of interpreting the Fed’s internal debate, and broader market rotation. [19]
- Potential for exaggerated moves in low volume. Reuters flagged that year-end portfolio adjustments and light trading can amplify price swings. [20]
Separately, Investopedia’s weekly calendar preview highlighted key U.S. data releases: pending home sales (Monday), FOMC meeting minutes (Tuesday), and initial jobless claims (Wednesday)—macro prints that can influence yields, sentiment, and risk appetite into year-end. [21]
Market status now—and what investors should know before Monday
Because it’s Sunday, the U.S. stock market is closed. The NYSE’s core trading session runs 9:30 a.m. to 4:00 p.m. ET. [22]
Here’s a practical checklist for TGT shareholders and watchlist traders before Monday’s open:
1) Watch for clearer details on TCIM’s stake and agenda
Friday’s reports left key questions unanswered: How large is TCIM’s position, and what changes does it want? Until there’s more specificity, price action may be driven as much by speculation about the activist “playbook” as by fundamentals. [23]
2) Expect volatility around governance headlines
The overlap of activism and a leadership transition can move quickly. Any new developments around board structure, an independent chair proposal, or management’s response strategy could become near-term catalysts, especially in thin year-end liquidity. [24]
3) Use Friday’s range as a near-term reference point
Friday’s intraday swing—from the mid‑$96s to just over $103—shows the market is willing to reprice TGT quickly on headline momentum. Traders often use these levels as reference points for the next session’s support/resistance behavior. [25]
4) Keep one eye on the macro calendar
Even a stock-specific story can be overwhelmed by rates and index moves into year-end. The data slate this week (pending home sales, Fed minutes, jobless claims) may influence how the market prices consumer demand and the path of interest rates—both relevant for large retailers. [26]
5) Know the holiday rhythm for the week ahead
Investopedia noted markets are operating on a normal schedule on New Year’s Eve (Dec. 31), with U.S. stock markets closed on New Year’s Day (Jan. 1, 2026). That schedule can concentrate risk and repositioning into fewer sessions. [27]
Bottom line: TGT gets a “headline tailwind,” but the next move still hinges on execution
Target stock’s late-December rebound has given bulls a timely headline boost and injected a fresh narrative into year-end trading: activist pressure as a potential accelerant for change. [28]
But the sharpest—and most consequential—debate remains unresolved: will any activist influence steer Target toward durable improvements in the retail engine (assortment, in-store experience, price perception, and digital execution), or toward shorter-term financial maneuvers that some retail analysts warn could distract from fundamentals? [29]
References
1. stockanalysis.com, 2. www.reuters.com, 3. www.reuters.com, 4. www.reuters.com, 5. www.investopedia.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.reuters.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.investing.com, 13. www.tipranks.com, 14. fintel.io, 15. www.investopedia.com, 16. corporate.target.com, 17. stockanalysis.com, 18. www.reuters.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.investopedia.com, 22. www.nyse.com, 23. www.reuters.com, 24. www.reuters.com, 25. stockanalysis.com, 26. www.investopedia.com, 27. www.investopedia.com, 28. www.reuters.com, 29. www.reuters.com
