Target's Stock Hasn't Had a Great Year. Here's Why It's Jumping Today

Key Takeaways

• Reports on Friday suggested that an activist investor has taken a stake in beaten-down retailer Target.
• Precise details about the stake couldn't be immediately determined, but investors nonetheless got on board, pulling the company's shares higher Friday.

We might not know how Target's sales were this Christmas yet, but its shares are getting a holiday-week bump.

Shares of the retailer rose Friday—recently up more than 2%, though a bit off earlier highs, they were among the S&P 500's top gainers in Friday's session—after the Financial Times reported, citing people familiar with the details, that hedge fund and activist investor Toms Capital Investment Management had taken a stake in the retailer.

Why This Matters to Investors

Generally speaking, activist investors look for shares of companies that have been pulled lower in hopes their ideas—or, sometimes, simply their presence—can induce those companies to make changes they deem likely to help turn things around. Target, a well-known company that has had a rough 2025, isn't a surprising candidate.

The story did not mention the size of the reported stake. Toms did not respond to Investopedia's request for comment in time for publication.

Target (TGT) in a statement said it maintains "a regular dialogue with the investment community."

"Target's top priority is getting back to growth, and our strategy to do so is rooted in three strategic priorities: leading with merchandising authority, providing a consistently elevated shopping experience and leveraging technology," the company's statement said. "We are confident the execution of this plan will drive the business forward and deliver sustained, long-term value for shareholders.”

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It's been a rough year for shares of Target, which have lost more than a quarter of their value in 2025. The company named a new CEO this summer, but he isn't scheduled to take over until February, and in the meantime some of the issues that led to the decision—the company expects sales to fall year-over-year in the fourth quarter after sliding in the third—persist.

Wall Street appears to be taking a wait-and-see approach with the shares. Visible Alpha's mean price target for the stock, a bit above $94, is below its previous close.

This article has been updated since it was first published to reflect market movements and incorporate Target's statement.

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