Apple Testing Out Mini-Stores in Select Targets

Target is moving closer towards cementing its deal with Apple (NASDAQ:AAPL) for opening its mini-stores on Target (NYSE:TGT) premises. The retailer announced that it is about to run a “test” of the proposal in selected stores. The move matches what has been a success for Apple in Best Buy (NYSE:BBY) outlets.

“We will have 25 stores (in Targets) with unique display and assortment,” said Target spokeswoman Dustee Jenkins, who described the move as “a test.” The locations of the mini-stores were not disclosed. Earlier reported by CNBC, a tie-up with Apple would be a shot in the arm for Target as Apple stores have been highly successful on their own.

In another development, Target announced a second buyback tranche of its shares amounting $5 billion to commence once its current $10 billion buyback.

Here’s how these stocks are reacting to the news:

Apple Inc. (NASDAQ:AAPL): AAPL shares recently traded at $419.00, down $3.55, or 0.84%. They have traded in a 52-week range of $310.50 to $427.75. Volume today was 3,192,182 shares versus a 3-month average volume of 14,368,600 shares. The company’s trailing P/E is 15.14, while trailing earnings are $27.68 per share.

Target Corp. (NYSE:TGT): TGT shares recently traded at $49.20, up $0.17, or 0.35%. They have traded in a 52-week range of $45.28 to $56.44. Volume today was 1,481,474 shares versus a 3-month average volume of 6,105,190 shares. The company’s trailing P/E is 11.45, while trailing earnings are $4.30 per share.

Best Buy Co. Inc. (NYSE:BBY): BBY shares recently traded at $24.65, down $0.16, or 0.64%. They have traded in a 52-week range of $21.79 to $35.79. Volume today was 871,967 shares versus a 3-month average volume of 6,531,650 shares. The company’s trailing P/E is 8.50, while trailing earnings are $2.90 per share.