Skip to content

Target stock wipes $30B in 6 months as ‘violence and theft’ soar

Target stock wipes $30B in 6 months as 'violence and theft' soar

In recent months, Target Corporation (NYSE: TGT) has seen a significant decline in its stock market performance, notably lagging behind the robust gains seen in the broader S&P 500 index throughout 2023.

This downward trend can largely be attributed to shifting consumer sentiment, sluggish company sales, and weakening demand for certain product categories. In addition, widespread boycotts against the company’s controversial Pride-themed clothing line for children also played their part. 

However, a less-discussed factor has also played a role in Target’s struggles – the substantial losses incurred from organized retail crime and in-store thefts, adding an additional layer of challenge to the company’s 2023 performance.

Target closed multiple stores due to organized retail crime

In May 2023, Target said it expected to sustain $1.3 billion in losses due to “theft and organized crime.” At the time, the retail giant said its profit would lose $500 million more than what it did in 2022, when it took a $800 million hit because of an “inventory shrink.”

Since this warning, TGT shares have plummeted considerably. 

Notably, the company lost $30 billion in market value in 6 months since theft activity accelerated, dropping from nearly $170 apiece to the current $106.6, The Kobeissi Letter pointed out on October 4. 

TGT’s slump since May. Source: The Kobeissi Letter

In percentage terms, the stock is down more than 35% on the 6-month chart. 

“In August, Target said stores saw a 120% increase in theft involving violence the first 5 months of 2023.”

– The Kobeissi added. 

More recently, Target shut down 9 stores across 4 states, including some in New York and San Francisco, citing growing violence and theft as primary reasons. 

“We cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance.”

– Target stated in a press release.

Target stock price analysis

At press time, shares of Target were sitting at $106.62, down 0.5% in the past 24 hours. 

The stock fell more than 2.4% in the past 5 days and nearly 15% on the month.

TGT 1-month price chart. Source: Finbold

At its current price, TGT is trading just above a 3.5-year support level, located at around $105.7. Losing this ground would pave the way for the stock to drop toward the next support close to $90.10. 

On the upside, the stock faces a near-term resistance zone at around $122. 

Buy stocks now with Interactive Brokers – the most advanced investment platform


Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts