Citigroup Cuts Macy's (NYSE:M) Price Target to $18.00

Key Points

• Citigroup cut its price target on Macy's from $24.00 to $18.00 and kept a "neutral" rating, implying only about a 1.7% upside from the prior close.
• Analyst coverage is mixed but cautious: MarketBeat shows a consensus rating of "Reduce" with a consensus target of $18.90 and the majority of analysts assigning Hold or Sell ratings (10 Holds, 3 Sells, 1 Buy).
• Macy's beat Q4 estimates with $1.67 EPS and $7.92B in revenue, but management issued cautious guidance amid macro headwinds; the stock trades around $17.70 with a market cap near $4.7 billion.

Macy's (NYSE:M - Get Free Report) had its target price lowered by equities research analysts at Citigroup from $24.00 to $18.00 in a note issued to investors on Thursday,Benzinga reports. The firm currently has a "neutral" rating on the stock. Citigroup's price target points to a potential upside of 1.72% from the company's previous close.

M has been the subject of several other reports. TD Cowen restated a "hold" rating on shares of Macy's in a research report on Thursday, December 4th. Evercore increased their target price on Macy's from $14.00 to $21.00 and gave the stock a "cautious" rating in a research note on Friday, December 5th. Guggenheim started coverage on Macy's in a report on Tuesday, December 9th. They set a "neutral" rating for the company. Wall Street Zen upgraded Macy's from a "buy" rating to a "strong-buy" rating in a report on Sunday. Finally, Morgan Stanley boosted their price target on shares of Macy's from $20.00 to $21.00 and gave the stock an "equal weight" rating in a research note on Friday, December 5th. One equities research analyst has rated the stock with a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Reduce" and a consensus target price of $18.90.

Macy's Price Performance

Shares of Macy's stock traded down $0.03 on Thursday, hitting $17.70. 2,840,934 shares of the company were exchanged, compared to its average volume of 7,533,232. The company has a quick ratio of 0.18, a current ratio of 1.25 and a debt-to-equity ratio of 0.56. The company has a 50-day moving average price of $20.47 and a 200 day moving average price of $20.03. The stock has a market capitalization of $4.70 billion, a price-to-earnings ratio of 10.45 and a beta of 1.51. Macy's has a 1-year low of $9.76 and a 1-year high of $24.41.

Macy's (NYSE:M - Get Free Report) last announced its quarterly earnings data on Wednesday, March 18th. The company reported $1.67 EPS for the quarter, topping analysts' consensus estimates of $1.55 by $0.12. Macy's had a return on equity of 15.57% and a net margin of 2.10%.The firm had revenue of $7.92 billion for the quarter, compared to the consensus estimate of $7.48 billion. During the same quarter last year, the business posted $1.80 earnings per share. The firm's revenue was down 1.7% compared to the same quarter last year. As a group, sell-side analysts predict that Macy's will post 2.39 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. CIBC Private Wealth Group LLC increased its stake in Macy's by 35.9% in the 4th quarter. CIBC Private Wealth Group LLC now owns 1,838 shares of the company's stock valued at $41,000 after buying an additional 486 shares during the period. PNC Financial Services Group Inc. boosted its stake in shares of Macy's by 1.9% during the 3rd quarter. PNC Financial Services Group Inc. now owns 26,806 shares of the company's stock valued at $481,000 after buying an additional 500 shares during the period. Cambria Investment Management L.P. boosted its stake in shares of Macy's by 4.5% during the 3rd quarter. Cambria Investment Management L.P. now owns 12,066 shares of the company's stock valued at $216,000 after buying an additional 524 shares during the period. Smartleaf Asset Management LLC grew its holdings in shares of Macy's by 51.7% during the 4th quarter. Smartleaf Asset Management LLC now owns 1,543 shares of the company's stock valued at $34,000 after acquiring an additional 526 shares in the last quarter. Finally, Bessemer Group Inc. increased its stake in shares of Macy's by 41.4% in the third quarter. Bessemer Group Inc. now owns 2,023 shares of the company's stock worth $37,000 after acquiring an additional 592 shares during the last quarter. Hedge funds and other institutional investors own 87.36% of the company's stock.

Key Macy's News

Here are the key news stories impacting Macy's this week:

• Positive Sentiment: Q4 earnings and revenue beat — Macy’s posted adjusted EPS of $1.67 and revenue of $7.92B, both above consensus, driving the immediate rally. Why Are Macy's (M) Shares Soaring Today
• Positive Sentiment: Same-store sales surprise and brand strength — Macy’s returned to annual comparable sales growth in FY2025 with positive comps across nameplates, led by Bloomingdale’s, a key driver of the upbeat quarter. Macy's Posts Surprise Growth in Its Same-Store Sales
• Positive Sentiment: Operational pivot showing early payoff — Management attributes the improvement to expanded use of AI, reimagined store formats and loyalty-data driven merchandising, suggesting structural improvement beyond a one‑quarter beat. Macy's Credits AI, Reimagined Stores and Loyalty Data for Return to Growth
• Positive Sentiment: Elevated bullish derivative activity — Unusually large call buying ahead of the print indicates some traders were positioned for upside, which can amplify intraday moves.
• Neutral Sentiment: Analyst stance mixed — JPMorgan trimmed its price target to $21 and set a Neutral, while Telsey reaffirmed Market Perform with a $20 target; both still imply upside from current levels but reflect tempered near‑term expectations. Analyst Actions
• Negative Sentiment: Cautious forward guidance — Macy’s forecast weaker annual sales and profit, citing tight consumer spending; that conservatism limits the sustainability of the rally and leaves room for downside if the macro backdrop weakens. Macy's forecasts weak annual sales, profit; sees tariff relief
• Negative Sentiment: Macro headwinds — Hotter-than-expected producer inflation readings could pressure discretionary spending and support the company’s cautious guidance. PPI Comes in Hot

About Macy's

Macy's, Inc is a leading American omnichannel retailer operating under the Macy's brand, as well as specialty divisions Bloomingdale's and Bluemercury. The company's retail portfolio encompasses full-line department stores, fashion-focused specialty outlets and a high-end beauty chain, offering consumers a wide array of apparel, footwear, accessories, cosmetics and home furnishings. Through its integrated network of physical stores and digital platforms, Macy's seeks to deliver a seamless shopping experience that blends in-store service with online convenience.

The company's product assortment spans men's, women's and children's clothing, beauty and personal care products, housewares and home décor.

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