Target Corporation (TGT) got a nice Friday bump after the Financial Times reported that activist investor Toms Capital Investment Management has built a stake in the retail giant. The stock climbed 2.15% to $98.62 on the news.

What's Happening Here?

According to Bloomberg, which cited the Financial Times report, Toms Capital has made a significant investment in Target, though the firm hasn't disclosed exactly how big that stake is. The report relied on unnamed sources familiar with the situation, so details remain sparse for now.

Activist investors typically don't just buy shares to watch them appreciate. They usually have ideas about how companies should be run differently, which can mean anything from operational changes to board shake-ups. For Target, which has been struggling lately, that kind of pressure might be exactly what some shareholders want to see.

Target offered a pretty standard corporate response when asked about the investment. The company said it maintains "regular dialogue with the investment community" and stressed that getting "back to growth" is the top priority. Target emphasized that its plans to improve merchandise selection, enhance the shopping experience, and upgrade technology are all aimed at driving the business forward and delivering long-term shareholder value.

Bloomberg noted that a representative for Toms Capital Investment Management couldn't immediately be reached for comment, so we're still waiting to hear what the activist's specific plans or concerns might be.

The market reaction suggests investors are hopeful that activist involvement could catalyze meaningful changes at Target, which has been working to regain its footing after a challenging period.