Published December 29, 2025
Target was an Investment Idea of the Month in October. Subscribers can go back into the Archives and read my detailed investment thesis on Target. Target is currently 5% of my trading account. On the news below, I intend to increase my position to 7%, making it my third largest position.
On Friday, the Financial Times cited “people familiar with the matter” (anonymous sources) for their exclusive report that Toms Capital had built a ‘significant’ stake in Target. Toms is an activist investor, with several successful efforts to create shareholder value. They are secretive and had no comment. Other wires picked up the FT story but did not independently validate. FT is a credible source but there has been no official confirmation from Toms or Target.
The stock ran up $6 and settled up $3 on the move. The Wall Street parlance is that Target is now “in play.” I assume Toms sees the same deep value I saw in the stock…but we do not have official confirmation. I’m hopeful we’ll realize profit here much more rapidly than I had estimated, but even if not, the stock is cheap and for me a long term hold until the value gap is closed.
