TJX Companies (NYSE:TJX) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a report issued on Friday, February 16th. The brokerage currently has a $88.00 price objective on the apparel and home fashions retailer’s stock. Zacks Investment Research‘s target price indicates a potential upside of 7.47% from the stock’s previous close.
According to Zacks, “TJX Companies has been recording year-over-year growth in both top and bottom lines for a while now, thanks to robust consumer traffic and strength in merchandise margins. The company has been gaining from its focus on store expansions, e-commerce efforts, solid merchandise mix and other sales driving initiatives. Further, its strong merchandise margins reflect its focus on inventory management. Notably, these factors, which fuelled third-quarter results, have helped the company's stock gain 11.5% in the past six months. However, the industry rallied about 25.4% in the same time frame. Further, TJX Companies has been witnessing high wage costs for quite sometime now. Unfortunately, management expects this to linger and hurt earnings growth by 2% in fiscal 2018. Nevertheless, management stated that it began the fourth quarter on a strong note, with its solid inventory position keeping it well placed for the holiday season.”
Several other equities research analysts also recently commented on TJX. Buckingham Research reissued a “buy” rating and issued a $85.00 price objective on shares of TJX Companies in a report on Thursday, October 19th. Royal Bank of Canada set a $76.00 price objective on TJX Companies and gave the company a “buy” rating in a report on Monday, October 30th. Wells Fargo & Co set a $76.00 price objective on TJX Companies and gave the company a “buy” rating in a report on Tuesday, November 14th. Citigroup cut their price objective on TJX Companies from $88.00 to $81.00 and set a “buy” rating for the company in a report on Wednesday, November 15th. Finally, BMO Capital Markets set a $85.00 price objective on TJX Companies and gave the company a “buy” rating in a report on Wednesday, November 15th. Six research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company. The company has an average rating of “Buy” and an average target price of $87.30.
TJX Companies (NYSE:TJX) last released its quarterly earnings results on Wednesday, February 28th. The apparel and home fashions retailer reported $1.37 earnings per share for the quarter, topping analysts’ consensus estimates of $1.27 by $0.10. The firm had revenue of $10.96 billion during the quarter, compared to the consensus estimate of $10.75 billion. TJX Companies had a return on equity of 55.23% and a net margin of 7.27%. The business’s revenue was up 15.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.03 EPS. research analysts forecast that TJX Companies will post 4.86 EPS for the current year.
TJX Companies announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, February 28th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the apparel and home fashions retailer to buy shares of its stock through open market purchases. Shares buyback plans are generally a sign that the company’s board of directors believes its stock is undervalued.
In other TJX Companies news, Chairman Carol Meyrowitz sold 43,020 shares of the stock in a transaction on Thursday, March 1st. The stock was sold at an average price of $83.77, for a total transaction of $3,603,785.40. Following the transaction, the chairman now owns 294,098 shares in the company, valued at approximately $24,636,589.46. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Amy B. Lane sold 1,000 shares of the stock in a transaction on Thursday, March 1st. The stock was sold at an average price of $82.81, for a total value of $82,810.00. Following the transaction, the director now owns 15,998 shares in the company, valued at approximately $1,324,794.38. The disclosure for this sale can be found here. Insiders have sold a total of 65,020 shares of company stock valued at $5,446,635 in the last ninety days. Insiders own 0.23% of the company’s stock.
A number of hedge funds have recently bought and sold shares of the business. BlackRock Inc. increased its position in TJX Companies by 0.9% during the 4th quarter. BlackRock Inc. now owns 45,354,058 shares of the apparel and home fashions retailer’s stock worth $3,467,773,000 after buying an additional 425,832 shares during the period. Bank of New York Mellon Corp increased its position in shares of TJX Companies by 3.9% in the fourth quarter. Bank of New York Mellon Corp now owns 19,328,384 shares of the apparel and home fashions retailer’s stock worth $1,477,847,000 after purchasing an additional 728,422 shares during the period. Geode Capital Management LLC increased its position in shares of TJX Companies by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 7,118,209 shares of the apparel and home fashions retailer’s stock worth $543,162,000 after purchasing an additional 211,836 shares during the period. Alliancebernstein L.P. increased its position in shares of TJX Companies by 5.6% in the fourth quarter. Alliancebernstein L.P. now owns 7,095,183 shares of the apparel and home fashions retailer’s stock worth $542,498,000 after purchasing an additional 376,424 shares during the period. Finally, UBS Asset Management Americas Inc. increased its position in shares of TJX Companies by 1.6% in the fourth quarter. UBS Asset Management Americas Inc. now owns 6,112,104 shares of the apparel and home fashions retailer’s stock worth $467,331,000 after purchasing an additional 95,862 shares during the period. Hedge funds and other institutional investors own 91.07% of the company’s stock.
About TJX Companies
The TJX Companies, Inc (TJX) is an off-price apparel and home fashions retailer in the United States and across the world. The Company operates through four segments: Marmaxx, HomeGoods, TJX Canada and TJX International. T.J. Maxx and Marshalls chains in the United States were collectively the off-price retailer in the United States with a total of 2,221 stores, as of January 28, 2017.
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