Target shares retreat for a second straight session on Monday, executive pay package axed following a disappointing year

Compensation for Brian Cornell, Target Corporations (TGT) Chief Executive Officer, was sharply reduced, as the retailer did not meet last years financial objectives amid shrinking sales.

Target shares closed lower for a second straight trading session on Monday. The stock edged down 0.14% ($0.08) to $55.77, with the intraday high and the intraday low being at $56.00 and $55.52 respectively. In the week ended on April 30th the shares of the general merchandise retailer added 1.95% to their market value compared to a week ago, which marked a third consecutive period of gains. The stock has edged down 0.14% so far during the current month, following a 1.20% surge in April. The latter has been the first monthly gain since November 2016. For the entire past year, Target Corporations shares lost 0.52%.

According to a May 1st regulatory filing, cash-and-stock compensation for Targets CEO was cut by almost 30% to $11.3 million last year. In comparison, in 2014, when Cornell assumed the executive role, his total compensation package amounted to $28.2 million, with 97% of the latter being in stock. Last year Targets CEO received $9.7 million in stock.

As for the retailers short-term incentive scheme, the CEO compensation depends on the performance of two key indicators – incentive EBIT, comprising 75% of the stock component, while the remainder is based on adjusted sales.

Target Corporations incentive EBIT objective for 2016 ($5.74 billion) was reportedly missed by $623 million.

In addition, the company also missed its 2016 adjusted sales objective ($71.62 billion) by $2.13 billion.

“This looks pretty normal in terms of executive compensation and, I think, it is actually good executive compensation in a turnaround situation”, Paul McConnell, managing director at Board Advisory LLC, was quoted as saying by Reuters. “You shouldnt be getting rich when you are producing rotten numbers”, he added.

According to CNN Money, the 26 analysts, offering 12-month forecasts regarding Target Corporation’s stock price, have a median target of $58.00, with a high estimate of $77.00 and a low estimate of $49.00. The median estimate is a 4.00% surge compared to the closing price of $55.77 on May 1st.

The same media also reported that 20 out of 30 surveyed investment analysts had rated Target Corporation’s stock as “Hold”, while 5 – as “Buy”. On the other hand, 4 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Target stock are presented as follows:

R1 – $55.81
R2 – $55.86
R3 (Range Resistance – Sell) – $55.90
R4 (Long Breakout) – $56.03
R5 (Breakout Target 1) – $56.19
R6 (Breakout Target 2) – $56.25

S1 – $55.73
S2 – $55.68
S3 (Range Support – Buy) – $55.64
S4 (Short Breakout) – $55.51
S5 (Breakout Target 1) – $55.35
S6 (Breakout Target 2) – $55.29

By using the traditional method of calculation, the weekly levels of importance for Target Corporation (TGT) are presented as follows:

Central Pivot Point – $55.52
R1 – $56.62
R2 – $57.39
R3 – $58.49
R4 – $59.59

S1 – $54.75
S2 – $53.65
S3 – $52.88
S4 – $52.11