Last week, Massachusetts-based TJX Companies, Inc. (NYSE: TJX) disclosed insiders’ selling of the company’s shares after posting decent numbers for the first quarter of Fiscal 2023. It retails off-price apparel and home fashion products through over 4,700 discount stores in nine countries.
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Shares of the retail firm closed 5.7% lower on Friday.
The news was revealed to investors that the retail firm’s Senior EVP & Group President, Kenneth Canestrari, sold $2.2 million worth of shares at a price of $61.04 per share. Also, TJX CFO Scott Goldenberg shrugged off shares worth $1.86 million at an average price of $62.04.
Sale Specifications
Interestingly, the Executive Chairman, Carol Meyrowitz, sold shares for $5.4 million at an average price of $74.07 per share during the last year, marking the largest insider transaction. TJX Companies’ insiders own shares worth about $127 million, which is just 0.2% of the company.
Earnings Snapshot
Recently, TJX Companies reported results for the first quarter of Fiscal 2023. Net sales came in at $11.4 billion, up 13% year-over-year, but missed the consensus estimate of $11.58 billion. Reported adjusted earnings stood at $0.68 per share, topping the Street’s estimate of $0.60 per share.
For Fiscal Q2 2023, U.S. comparable-store sales are expected to be down 1% to down 3%. Additionally, earnings are predicted in the range of $0.65 to $0.69 per share. For Fiscal 2023, the company anticipates U.S. comparable store sales to be up 1% to 2%. Meanwhile, adjusted EPS is expected to land between $3.13 to $3.20.
Analysts’ Recommendation
Following the earnings update, Morgan Stanley analyst Kimberly Greenberger maintained a Buy rating on TJX and lifted the price target to $80 (38.24% upside potential) from $78.
Greenberger remains impressed with the company’s earnings results and management’s strong guidance.
Consensus among analysts is a Strong Buy based on 15 Buys versus three Holds. The average TJX Companies price target of $75.47 implies 30.41% upside potential from current levels. However, shares have lost 11.35% over the past year.
Smart Score
TJX Companies scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Bottom-Line
Though buying and selling activity on the insider list may indicate future stock price movement, investors should not use it as their sole guiding factor. Rather, they should base their investment selections on the company’s excellent fundamentals and long-term potential.
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