Activist Investor Puts Target Corporation Under Pressure
Target Corporation shares rose approximately 3% on Friday following reports that activist hedge fund Toms Capital Investment Management (TCIM) has acquired a significant stake in the struggling retail giant. This investment intensifies pressure on Target as it braces for a leadership transition amidst ongoing sales challenges.
The Minneapolis-based retailer has recorded three consecutive quarters of declining comparable sales, with its stock down more than 28% in 2025. This paints a stark contrast to competitors like Walmart, which has seen a 24% increase this year. The exact size of TCIM’s stake remains undisclosed, although the hedge fund is renowned for instigating strategic changes at companies including Kellanova, US Steel, and Kenvue.
The activist investment arrives at a critical juncture for Target. Incoming CEO Michael Fiddelke is slated to take the reins in February 2026 from Brian Cornell, who will transition to the role of executive chairman—a structure that has faced criticism from shareholder advocates advocating for independent board leadership.
TCIM’s entry marks Target’s first significant activist challenge since 2009, when Bill Ackman’s Pershing Square vied for board seats. Analysts speculate that the activist could advocate for governance changes, operational improvements, or real estate monetization, considering Target owns approximately 75% of its properties.
Source: https://www.pymnts.com/news/2025/activist-investor-tcim-makes-significant-investment-in-target/