NEW YORK, December 29, 2025, 00:41 ET — Market closed
- Target shares last closed up 3.1% at $99.55 after a report that activist investor Toms Capital Investment Management built a stake. Google+2Reuters+2
- The size of the position and any demands were not disclosed. Reuters
- Traders are watching for filings or public moves from the activist ahead of the week’s year-end data and thin trading. Reuters+1
Target Corp shares last closed up 3.1% at $99.55, after the Financial Times reported activist investor Toms Capital Investment Management had taken a significant stake in the retailer. Google+2Reuters+2
The report matters now because Target is trying to restart growth after a prolonged slump, and activist investors typically buy stakes and push for strategy or governance changes to lift returns. Reuters
It also lands as Target prepares for a leadership change that has already raised investor questions, setting up a volatile mix of scrutiny and potential shakeups. Reuters
The Financial Times report did not disclose the size of TCIM’s stake or what it may ask for, Reuters reported. TCIM did not respond to Reuters’ requests for comment. Reuters
Target said it “maintain[s] a regular dialogue with the investment community,” adding that its top priority is “getting back to growth,” according to a statement to Reuters. Reuters
Target’s stock has lost more than 28% this year, after the company posted three straight quarters of falling comparable sales, a key retail gauge that tracks sales at stores open at least a year. Reuters
In August, Target tapped company veteran Michael Fiddelke to revive growth. He is set to take over as CEO in February while continuing to report to current CEO Brian Cornell, who is due to become executive chairman, Reuters reported. Reuters
That governance structure has drawn criticism, and the shareholder group The Accountability Board has pushed a proposal urging Target to appoint an independent chairman, Reuters reported. Reuters
TCIM has recently pushed for changes at other companies including Kellanova and U.S. Steel, and it took a stake in Kenvue ahead of its sale to Kimberly-Clark last month for about $40 billion, Reuters said. Reuters
Target laid out plans to spend an additional $1 billion in 2026 on new store openings and remodels, and it has cut 1,800 corporate roles as part of a broader restructuring, Reuters reported. Reuters
Target is no stranger to activists. In 2009, it fought a proxy battle — a contest for shareholder votes — with Pershing Square’s Bill Ackman, whose real-estate spin-off plan was rejected by shareholders, Reuters reported. Reuters
Real estate may again be a pressure point. Target owns about 75% of its real estate, including land, according to analysis by UBS analyst Michael Lasser cited by Reuters. Reuters
Neil Saunders, managing director at retail research firm GlobalData, warned that financial engineering could distract from fixing the core business, saying it “could end up being a distraction.” Reuters
Before the next session, traders will be watching for any filings or public steps that clarify TCIM’s position and agenda, which can range from private talks to board nominations and proxy fights. Reuters
Technical levels are also in focus after the spike, with $100 in play as a round-number marker. The stock’s latest day range was $96.54 to $103.03, Google Finance data showed. Google
On the macro calendar later Monday, investors will track U.S. data including advance international trade in goods and the National Association of Realtors’ pending home sales index, alongside the Dallas Fed’s manufacturing survey, according to the New York Fed’s calendar. Federal Reserve Bank of New York
Target has not confirmed its next earnings publication date, but MarketBeat estimates the report around March 3, before the open, based on past schedules. That update is expected to sharpen focus on holiday-quarter margins and whether comparable sales stabilize. MarketBeat+1
