Who owns Target? The ownership of Target is distributed among diverse stakeholders, reflecting a wide range of individuals and organizations who have invested in the company. Most of the ownership of Target Corporation is held by institutional investors, who control about 82.85% of the outstanding shares.
Target Corporation was originally a subsidiary of the Dayton-Hudson Corporation, which was owned and controlled by the Dayton family. For several decades, the Dayton family maintained majority ownership and played a crucial role in shaping the company’s vision and strategy. However, in the late 1980s, the ownership structure of Target underwent a significant shift.
The Dayton-Hudson Corporation, which owned Target and other department store chains, decided to divest its department store business and focus exclusively on expanding the Target brand. The decision by the Dayton-Hudson Corporation to divest its department store business and focus on expanding the Target brand created an opportunity for institutional investors to gain ownership of Target.
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Individual Shareholders of Target
Individual shareholders of Target Corporation hold a combined ownership stake of 1.07%. It’s interesting to note that most of the individual shareholders with a high ownership stake in the company are executives within Target, including top-level leaders. This highlights their direct involvement and personal investment in Target’s achievements. Some notable top-level leaders in Target who owns a high stake in the company are:
Brian C. Cornell
Brian C. Cornell possesses approximately 441,329 shares of Target, valued at over $58 million. Brian Cornell is a highly accomplished businessman and the CEO of Target Corporation. Cornell brings a wealth of expertise to his position, with a background in consulting and experience in various leadership roles, including at Sam’s Club and Michaels Stores.
Since joining Target in 2014, he has implemented a comprehensive transformation plan to enhance the guest experience, strengthen digital capabilities, and optimize operations. Cornell’s focus on brand strategy, innovation, and corporate social responsibility has helped position Target as a leading retail brand. Under his leadership, Target has seen significant growth and success in the ever-changing retail landscape.
John J. Mulligan
John J. Mulligan possesses approximately 93,943 shares of Target, valued at over $12 million. John J. Mulligan is an executive who has held prominent positions at Target Corporation. He is the current Chief Operating Officer (COO) of Target Corporation. As the COO, Mulligan was responsible for overseeing various operational aspects of the company’s business.
He played a crucial role in driving operational efficiency, optimizing supply chain management, and enhancing the overall customer experience. Mulligan’s contributions have been instrumental in shaping Target’s strategic direction and operational success.
Top Institutional Shareholders of Target
The top institutional shareholders of Target include:
The Vanguard Group
The Vanguard Group owns 8.76% of Target’s outstanding shares, worth $6.36 billion. The Vanguard Group was founded in 1975 by John C. Bogle with the vision of providing low-cost and long-term investment options to individual investors. Bogle is credited with creating the first index fund, the Vanguard 500 Index Fund, which tracked the performance of the S&P 500.
This innovation revolutionized the investment industry and paved the way for the popularity of index funds. Over the years, Vanguard expanded its offerings to include a wide range of index funds, actively managed funds, ETFs, and other investment products. The company is headquartered in Malvern, Pennsylvania, United States, and has regional offices around the world to serve its global client base.
Capital Research & Management Co.
Capital Research & Management Co. owns 7.84% of Target’s outstanding shares worth $5.69 billion. Capital Research & Management Co., commonly known as Capital Group, is a global investment management company based in Los Angeles, California. It is one of the world’s largest and oldest investment management firms, with a rich history dating back to 1931.
Capital Group manages a diverse range of investment products and provides services to a wide array of clients, including individuals, institutions, and financial intermediaries. The company operates through its subsidiary, American Funds, which is one of the largest mutual fund families in the United States.
American Funds offers a broad range of mutual funds spanning various asset classes, including equities, fixed income, and multi-asset portfolios. The firm’s investment philosophy revolves around long-term investing, fundamental research, and a commitment to delivering superior results for its clients.
Capital Group follows a multi-manager system, where different portfolio managers have independent decision-making authority over their respective investment strategies. This approach allows for the diversification of expertise and investment styles within the firm. The company emphasizes active management and employs a team-based approach to investment decision-making, combining top-down macro analysis with bottom-up fundamental research.
SSgA Funds Management, Inc.
SSgA Funds Management, Inc., owns 7.51% of Target’s outstanding shares worth $5.45 billion. SSgA Funds Management, Inc, commonly known as State Street Global Advisors (SSGA), is one of the largest asset management firms in the world.
Headquartered in Boston, Massachusetts, SSGA operates as the investment management division of State Street Corporation, a leading financial services company. SSGA offers a wide range of investment strategies, including index funds, active funds, and alternative investments.
One of SSGA’s notable contributions to the investment industry is the creation of the first exchange-traded fund (ETF), the SPDR S&P 500 ETF, commonly known as the “Spider.” Since then, SSGA has become a significant player in the ETF market, offering a diverse suite of ETFs covering various asset classes and investment strategies. A combination of quantitative research and fundamental analysis characterizes SSGA’s investment approach.
BlackRock, Inc.
BlackRock, Inc., owns 4.83% of Target’s outstanding shares worth $3.5 billion. Founded in 1988, BlackRock has become one of the largest investment management corporations globally. It was established by a group of executives led by Larry Fink, Robert Kapito, and Susan Wagner. Initially operating as part of The Blackstone Group, BlackRock became an independent firm in 1994. The company gained recognition for its expertise in fixed-income and risk management.
Over time, BlackRock expanded its presence through organic growth and strategic acquisitions. One significant acquisition was the purchase of Barclays Global Investors in 2009, which positioned BlackRock as a leader in index-based and ETF investments. BlackRock is headquartered in New York City, New York, United States, and has a strong global presence with offices in major financial centers worldwide.
Massachusetts Financial Services
Massachusetts Financial Services owns 1.85% of Target’s outstanding shares worth $1.34 billion. Massachusetts Financial Services, commonly referred to as MFS Investment Management, is a global investment management firm headquartered in Boston, Massachusetts.
Founded in 1924, MFS has a long history of providing investment solutions to individual and institutional investors. The company manages a diverse range of investment products, including mutual funds, institutional separate accounts, and retirement plans.
MFS takes a research-driven approach to investing, combining quantitative analysis with in-depth fundamental research. The firm’s investment process involves evaluating macroeconomic trends, analyzing industry dynamics, and conducting bottom-up company research to identify attractive investment opportunities. MFS employs a team-based approach, with portfolio managers working closely with analysts to make informed investment decisions.
MFS serves a global client base and has offices in major financial centers around the world. The company’s investment teams are organized by asset class and geography, allowing them to leverage local market expertise while benefiting from global insights. MFS emphasizes a client-centric approach, seeking to understand the unique needs and objectives of its clients and providing tailored investment solutions.
History of Target
Target’s history can be traced back to the early 20th century, when it was initially known as the Dayton Dry Goods Company. George D. Dayton, in Minneapolis, Minnesota, founded the company. Dayton originally purchased a small department store and gradually expanded the business. In 1910, the company was renamed Dayton Company, reflecting its growth and success.
During its early years, Target Corporation existed as a division or subsidiary of the larger Dayton company, which was owned and operated by George D. Dayton. Target initially started as a discount store concept within Dayton company, offering a new approach to retail that aimed to provide quality merchandise at affordable prices.
The establishment of Target as a separate division within Dayton company was a strategic decision to differentiate its offerings and target a broader consumer base. The division was created to cater to budget-conscious shoppers seeking value-oriented products while maintaining a stylish and upscale shopping experience.
In 1962, the first official Target store was opened in Roseville, Minnesota. This marked the beginning of Target’s journey as an independent retail brand focused on providing affordable yet trendy merchandise. The success of the Roseville store laid the foundation for further expansion and growth of the Target division.
In 1969, the Dayton Company merged with the J.L. Hudson Company, another regional department store chain, to form the Dayton-Hudson Corporation. Following this merger, the individual Target store locations continued to operate under the Dayton-Hudson Corporation.
In 2000, the Dayton-Hudson Corporation changed its name to Target Corporation. The decision was made to align the company’s corporate name with its most successful retail brand, Target. This name change reflected Target’s growing prominence and its position as the primary focus of the company’s operations.
With the name change to Target Corporation, the company shifted its primary focus from operating multiple department store chains to concentrating on the Target brand. With a concentrated focus on the Target brand, Target Corporation experienced significant growth and success. Target expanded its store count, introduced new store formats such as Target Greatland and SuperTarget, and established itself as a significant player in the retail industry.
Early Ownership of Target
During its early years, Target Corporation was primarily owned by the Dayton family, led by George D. Dayton, who founded the company. George D. Dayton held a significant ownership stake and was pivotal in the company’s establishment and development.
As the founder, George D. Dayton used his entrepreneurial vision to shape Target’s growth and success. He initially acquired a small department store in Minneapolis, Minnesota, in 1902, which served as the foundation for the company that would eventually become Target Corporation.
The ownership of Target Corporation extended beyond George D. Dayton himself. The Dayton family, including George D. Dayton’s descendants, maintained substantial ownership stakes in the company during its early stages. This ownership structure allowed the family to have a direct influence on the company’s strategic direction, management decisions, and long-term vision.
Target’s Ownership Transition
The Dayton family gradually relinquished ownership of Target Corporation over the years through a series of transactions and changes in the company’s ownership structure. Here are some key milestones that led to the Dayton family giving up ownership:
Initial Public Offering (IPO)
Target Corporation, then known as the Dayton Corporation, conducted its IPO on October 18, 1967. The IPO was priced at $34 per share, and it marked a pivotal moment in the company’s trajectory.
This allowed the company to raise capital and facilitated the entry of new shareholders, diluting the Dayton family’s ownership stake. While the Dayton family still retained a significant ownership interest at this stage, the IPO marked the beginning of the transition to a more widely held company.
Since its IPO, Target has experienced stock price fluctuations influenced by factors such as overall market conditions, company performance, industry trends, and investor sentiment. The stock price is subject to volatility, reflecting changes in market demand and investor perception of the company’s prospects.
Formation of Dayton Hudson Corporation
In 1969, Target Corporation underwent a reorganization and was incorporated as part of a new holding company called Dayton Hudson Corporation. The formation of the Dayton-Hudson Corporation was the result of a merger between two prominent regional department store chains, the Dayton Company and the J.L. Hudson Company.
The formation of Dayton Hudson Corporation brought together various retail businesses owned by the Dayton family, including Target, as well as other divisions such as Dayton’s Department Store and Mervyn’s. This reorganization further diversified the ownership structure and reduced the Dayton family’s direct control over Target.
While the Dayton family’s direct ownership of Target Corporation diminished over time, it’s worth noting that members of the family remained involved in the company as executives and significant shareholders.
Conclusion
In conclusion, Target Corporation has undergone significant changes in its ownership structure throughout its history. Originally a subsidiary of the Dayton-Hudson Corporation, which was owned and controlled by the Dayton family, Target transitioned to a publicly traded company through its initial public offering (IPO) in 1967.
Today, institutional investors, including large asset management firms such as The Vanguard Group, Capital Research & Management Co, SSgA Funds Management, Inc, BlackRock, Inc, and Massachusetts Financial Services, hold a substantial portion of Target’s outstanding shares. These institutional investors collectively own approximately 82.85% of the company.