Target stock jumps on activist-stake report — what Wall Street watches next

NEW YORK, December 28, 2025, 20:35 ET — Market closed

Target shares ended Friday up about 3.1% at $99.55 after a report that activist Toms Capital Investment Management built a stake. ^[1]
Investors are watching for a filing that could disclose the stake size and any agenda, as the retailer heads into a February CEO transition. ^[2]
The move comes as Target tries to reverse a slide in comparable sales, a closely watched measure of sales at stores open at least a year. ^[3]

Target Corp shares rose in the last U.S. trading session after a report that hedge fund Toms Capital Investment Management (TCIM) had built a significant position in the retailer. The stock ended Friday up about 3.1% at $99.55 after touching $101.30 intraday, according to market data. ^[4]

The report matters now because Target is trying to steady sales and regain investor confidence heading into a leadership handover. The retailer has logged three straight quarters of falling comparable sales, a key gauge of underlying demand. ^[5]

The stock has lost more than 28% so far this year, making it sensitive to signs of shareholder pressure and strategic change. ^[6]

The Financial Times reported on Friday that TCIM had made a “significant investment” in Target, citing people familiar with the matter. The stake size was not disclosed, and the report did not say what changes the fund might seek. ^[7]

Target said it maintains regular dialogue with the investment community and that its top priority is getting back to growth. TCIM did not respond to requests for comment, Reuters reported. ^[8]

TCIM is a relatively unknown name in retail activism but has drawn attention through recent campaigns elsewhere. Reuters said the fund took a position in Tylenol maker Kenvue ahead of its sale to Kimberly-Clark for about $40 billion, and has pushed for changes at Kellanova and U.S. Steel. ^[9]

For incoming chief executive Michael Fiddelke, the activist interest lands as a first major test ahead of his planned move into the CEO role in February. Reuters reported that Fiddelke is expected to continue reporting to current CEO Brian Cornell, who is set to become executive chairman, a structure that has drawn criticism. ^[10]

A nonprofit shareholder group, The Accountability Board, has also pressed Target on governance, including by putting forward a shareholder proposal urging the company to appoint an independent chair. ^[11]

Target has been trying to re-ignite growth with investment and restructuring. Reuters reported the company plans to spend an additional $1 billion in 2026 on new store openings and remodels, and has cut 1,800 corporate roles as part of a broader overhaul. ^[12]

Any activist focus on Target’s real estate would revive an old debate on Wall Street. Target owns about 75% of its real estate, including land, according to analysis by UBS analyst Michael Lasser cited by Reuters, and the company previously fought a proxy battle with Bill Ackman’s Pershing Square in 2009 over a proposed real-estate spin-off. ^[13]

Neil Saunders, managing director at retail research firm GlobalData, argued that a real-estate selloff would be a short-term fix. “This can only be achieved by focusing on retail fundamentals,” he wrote in an email. ^[14]

Target’s challenges have played out against intense competition in U.S. big-box retail, where Walmart has gained market share by leaning into lower-priced essentials and fast delivery, Reuters reported in a separate account of the situation. ^[15]

Before U.S. markets reopen on Monday, investors will watch for any disclosure that clarifies TCIM’s position and intentions. If the fund’s stake exceeds key reporting thresholds, a Schedule 13D filing — a form often used by investors seeking to influence a company — is generally required within five business days under SEC rules. ^[16]

Broader year-end market mechanics could also amplify moves in single names, with light volumes and portfolio rebalancing in the final sessions of 2025. Investors also have Federal Reserve meeting minutes due Tuesday, which could influence risk appetite across sectors. ^[17]

On the chart, Target is hovering just under the $100 level, and above key moving averages that traders watch as trend markers. Yahoo Finance data show a 50-day moving average of about $92.54 and a 200-day moving average of about $96.14. ^[18]

Target has not scheduled its next earnings release on its investor events calendar, which currently shows no future events. Market calendars from third-party services list early March for the next report, and investors are likely to scrutinize updates on sales trends, margins and the pace of planned 2026 investment. ^[19]