NEW YORK, December 30, 2025, 12:56 ET — Regular session
- Target shares fell about 0.7% in midday trading, roughly in line with a softer retail sector.
- Investors are still weighing activist pressure at the retailer ahead of a CEO transition in February.
- Traders are watching for any filings that disclose the activist’s stake size and intentions.
Target Corp shares were down 0.7% at $97.38 in midday trading on Tuesday, lagging a modest dip across retail names.
The stock’s move comes as investors keep focus on activist scrutiny of the big-box retailer, a fresh overhang after a report that hedge fund Toms Capital Investment Management has built a significant, but undisclosed, position. 1
Why it matters now: Target is trying to halt a sales slide and reset expectations with a leadership handover looming, after the company posted three straight quarters of declining comparable sales — a metric that strips out the impact of new store openings to show growth at established locations. 1
The Financial Times report did not disclose the size of TCIM’s stake or specify what demands the New York-based firm may make, The Star reported, citing Reuters. “To us, this (TCIM stake) signals that investors are hungry for change,” said Matt Prescott, president of shareholder group The Accountability Board. 1
Target has already faced questions about governance as it prepares for Michael Fiddelke to take the top job in February, while current chief executive Brian Cornell is set to become executive chairman. The Accountability Board has pressed for an independent chair, according to the Reuters report. 1
The company has sought to reassure shareholders by outlining 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, the report said. 1
Target’s comparable sales declines matter because they point to weaker demand at existing stores and online, even as retailers step up promotions in a price-sensitive environment. Target’s shares have lost more than 28% in 2025, the Reuters report said. 1
The weakness on Tuesday was not isolated. The SPDR S&P Retail ETF was down about 0.3%, while Walmart, Costco and Amazon were also modestly lower.
Broader markets were muted in holiday-thin trading, with investors looking ahead to minutes from the Federal Reserve’s December meeting later in the day for clues on the path of interest rates — a key input for consumer spending and retail margins. 2
Investors are also watching for any U.S. securities filings that would clarify TCIM’s position. Investors who cross certain ownership thresholds generally must disclose “beneficial ownership” on Schedule 13D or 13G filings, which can detail holdings and, in the case of 13D, potential intent to influence management. 3
One reason activists often target big retailers is asset optionality. Target owns about 75% of its real estate, including the land, according to analysis by UBS analyst Michael Lasser cited in the Reuters report — a point that can raise questions about whether assets could be monetized. 1
For now, Target has no upcoming investor events posted on its investor relations site, leaving the next firm catalyst to be either a new disclosure around the activist stake or the company’s next scheduled results and outlook update. 4
Absent new headlines, traders said the stock is likely to keep tracking broader retail sentiment into year-end, with the activist situation a swing factor if TCIM’s plans become clearer.
