Will Target Corporation (TGT) Bounce Back?

Madison Funds, managed by Madison Investment Management, released its “Madison Sustainable Equity Fund” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 7% compared to a 7.56% return for the S&P 500 Index. In the quarter, sector allocation was negative while the stock selection was positive. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Madison Funds highlighted stocks like Target Corporation (NYSE:TGT) in its Q4 2022 investor letter. Headquartered in Minneapolis, Minnesota, Target Corporation (NYSE:TGT) is a US-based general merchandise retailer. On January 13, 2023, Target Corporation (NYSE:TGT) stock closed at $164.60 per share. One-month return of Target Corporation (NYSE:TGT) was 12.39%, and its shares lost 25.65% of their value over the last 52 weeks. Target Corporation (NYSE:TGT) has a market capitalization of $75.767 billion.

Madison Funds made the following comment about Target Corporation (NYSE:TGT) in its fourth-quarter 2022 investor letter:

“Despite having already addressed excess inventories, Target Corporation (NYSE:TGT) reported a disappointing third quarter and further cut fourth quarter guidance. Although sales were slightly better than expected, Target saw a slowdown in discretionary sales. Gross margins were below expectations with higher markdowns, increased shrink, and incremental costs. Long-term, we expect Target to be able to return to operating margins in the 6% to 8% range as inventories return to normal levels as well as seeing a normalization in supply chain costs.”

Target Corporation (NYSE:TGT) is not on our 30 Most Popular Stocks Among Hedge Funds list. As per our database, 52 hedge fund portfolios held Target Corporation (NYSE:TGT) at the end of the third quarter, which was 46 in the previous quarter.

We discussed Target Corporation (NYSE:TGT) in another article and shared the list of biggest employers in the world. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.