TGT – Here’s how much Target stock is down in a month as backlash intensifies
Shares of Target (NYSE: TGT) have plummeted significantly in recent weeks as the company continues to deal with intense backlash over its LGBTQ-friendly clothing collection for children.
In the last 10 days alone, the retailer’s stock lost roughly $10 billion in market valuation, marking a drop of around 14% to $64.1 billion. The investor sell-off in Target took the company’s stock price to nearly a 3-year low.
Over the past month, TGT fell from $157.12 by nearly 11.5%. During that period, the retailer’s stock experienced a significant trading range from $138.08 to $162.45.
At the time of publication on Monday, May 29, the company’s shares were trading at $138.93, after closing down 1.29% on May 26.
Year-to-date, TGT’s losses are less significant, at around 7.36%.
During the boycotts, the pride-themed displays were knocked over by protesters, Target said, forcing the company to move those products away from the front in some of its Southern stores.
Despite recent losses, Evercore analyst Greg Melich believes that the backlash would not impact Target’s stock as much as similar boycotts affected Budweiser owner Anheuser-Busch InBev. Notably, stocks of Bud Light (NYSE: BUD) and Walt Disney (NYSE: DIS) also slumped recently following the backlash against their promotion of similar agendas.
“We think Target will get through this. And while the situation remains fluid, we believe the risk is less than what AB InBev has seen with the recent Bud Light fiasco.”– Melich wrote in a note to investors.
The financial experts said the latest controversy surrounds only a small portion of Target’s seasonal products – around 2,000 out of more than 80,000 stock-keeping units (SKUs). In addition, Melich thinks Target’s management will eventually be able to transition to the appropriate product assortment and marketing, which should weather the impact of current losses.
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