Newport Trust Company LLC Decreases Stake in Macy's, Inc. $M

Key Points

• Newport Trust Company LLC reduced its Macy’s stake by 2.5% in the fourth quarter, selling 176,305 shares and ending with 6,989,536 shares valued at about $154.1 million.
• Macy’s reported better-than-expected quarterly results, with EPS of $1.67 versus the $1.55 consensus and revenue of $7.92 billion versus $7.48 billion expected, even though revenue fell 1.7% from a year earlier.
• Analysts remain cautious: the stock has a consensus rating of “Reduce” with an average target price of $18.90, while Macy’s also announced a quarterly dividend of $0.1915 per share, yielding 3.7% annually.

Newport Trust Company LLC lowered its position in Macy's, Inc. (NYSE:M - Free Report) by 2.5% during the fourth quarter, according to its most recent filing with the SEC. The institutional investor owned 6,989,536 shares of the company's stock after selling 176,305 shares during the period. Newport Trust Company LLC owned 2.63% of Macy's worth $154,119,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in M. American Century Companies Inc. increased its stake in shares of Macy's by 6.6% in the 3rd quarter. American Century Companies Inc. now owns 10,764,293 shares of the company's stock worth $193,004,000 after acquiring an additional 669,729 shares during the last quarter. Schroder Investment Management Group grew its holdings in shares of Macy's by 1.1% in the third quarter. Schroder Investment Management Group now owns 9,738,338 shares of the company's stock valued at $174,608,000 after purchasing an additional 110,548 shares during the period. State Street Corp increased its position in Macy's by 0.5% during the second quarter. State Street Corp now owns 9,420,372 shares of the company's stock worth $111,547,000 after purchasing an additional 45,997 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its stake in Macy's by 39.9% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,950,950 shares of the company's stock worth $106,701,000 after purchasing an additional 1,697,412 shares during the period. Finally, LSV Asset Management raised its stake in Macy's by 12.2% during the third quarter. LSV Asset Management now owns 4,760,204 shares of the company's stock worth $85,350,000 after purchasing an additional 516,359 shares during the period. Hedge funds and other institutional investors own 87.36% of the company's stock.

Analysts Set New Price Targets

Several research firms have weighed in on M. Zacks Research upgraded shares of Macy's from a "strong sell" rating to a "hold" rating in a report on Monday, April 13th. Wall Street Zen lowered shares of Macy's from a "buy" rating to a "hold" rating in a report on Sunday, April 26th. UBS Group boosted their target price on shares of Macy's from $8.00 to $9.00 and gave the company a "sell" rating in a report on Monday, March 9th. Jefferies Financial Group reiterated a "buy" rating and issued a $22.00 target price on shares of Macy's in a report on Wednesday, March 18th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Macy's from $24.00 to $21.00 and set a "neutral" rating on the stock in a report on Wednesday, March 18th. One analyst has rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and an average target price of $18.90.

Macy's Stock Up 3.2%

Shares of NYSE:M opened at $20.63 on Friday. The business has a 50-day moving average price of $18.72 and a 200 day moving average price of $20.45. The company has a current ratio of 1.49, a quick ratio of 0.50 and a debt-to-equity ratio of 0.50. The company has a market capitalization of $5.44 billion, a price-to-earnings ratio of 8.89 and a beta of 1.47. Macy's, Inc. has a 12-month low of $10.54 and a 12-month high of $24.41.

Macy's (NYSE:M - Get Free Report) last issued its quarterly earnings data on Wednesday, March 18th. The company reported $1.67 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.55 by $0.12. The firm had revenue of $7.92 billion during the quarter, compared to the consensus estimate of $7.48 billion. Macy's had a return on equity of 14.22% and a net margin of 2.84%.The company's quarterly revenue was down 1.7% on a year-over-year basis. During the same period last year, the company earned $1.80 EPS. Sell-side analysts expect that Macy's, Inc. will post 2.09 EPS for the current year.

Macy's Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Monday, June 15th will be given a $0.1915 dividend. This represents a $0.77 annualized dividend and a yield of 3.7%. The ex-dividend date of this dividend is Monday, June 15th. Macy's's payout ratio is currently 33.19%.

Insider Transactions at Macy's

In other Macy's news, EVP Danielle L. Kirgan sold 10,010 shares of Macy's stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $17.92, for a total value of $179,379.20. Following the completion of the transaction, the executive vice president directly owned 108,008 shares of the company's stock, valued at $1,935,503.36. The trade was a 8.48% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Tracy M. Preston sold 5,271 shares of Macy's stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $17.92, for a total value of $94,456.32. Following the completion of the transaction, the executive vice president directly owned 28,773 shares of the company's stock, valued at approximately $515,612.16. This represents a 15.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 94,967 shares of company stock valued at $1,705,276. 1.05% of the stock is owned by insiders.

Macy's Company Profile

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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