Insider targets Target (TGT)

"The buy is the first open market purchase in at least six years for Steinhafel. Between October 2003 and June 2007, he exercised and sold options on 1 million shares at $52.58 for outflows of $53.2 million and net proceeds of $32.6 million.

"The options generated an average gain of 226% and had, on average, 2.9 years remaining until expiration.

"Coming a day after activist investor William Ackman publicly lost his patience with Target, Steinhafel's buy has the feel of someone trying to send a message to investors, Ackman being the most important one of them for the time being.

"By purchasing $4.6 million in stock and with another $2.5 million in shares going into his 401(k), Steinhafel is sending a strong message, one that suggests he's not going to be pushed around by Ackman.

"Recent economic data has suggested that the consumer economy could have bottomed and is gearing up for a rebound. Nonetheless, it's difficult to tell whether Steinhafel is buying into that idea or simply using his checkbook as ammunition against an activist investor.

"However, we think it is time to start getting more bullish on Target, and we are going to up our rating to 'Buy' and make a second purchase in the name while this news is still largely uncovered."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.