Macy's, Inc. (NYSE:M) Receives Average Rating of "Reduce" from Analysts

Key Points

• Macy’s has a consensus analyst rating of “Reduce” from 14 covering firms, with an average 12-month price target of $18.90. The group includes 2 sell ratings, 11 hold ratings, and 1 buy rating.
• The company recently reported stronger-than-expected quarterly results, posting EPS of $1.67 versus the $1.55 estimate and revenue of $7.92 billion versus the $7.48 billion forecast. However, revenue still declined 1.7% year over year.
• Macy’s also raised its quarterly dividend to $0.1915 per share, or $0.77 annualized, implying a 4.2% yield. Meanwhile, insiders sold shares recently, including CEO Antony Spring and EVP Tracy M. Preston.

Shares of Macy's, Inc. (NYSE:M - Get Free Report) have been given a consensus recommendation of "Reduce" by the fourteen research firms that are currently covering the company, MarketBeat.com reports. Two investment analysts have rated the stock with a sell rating, eleven have given a hold rating and one has assigned a buy rating to the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $18.90.

M has been the subject of a number of recent research reports. JPMorgan Chase & Co. lowered their price objective on Macy's from $24.00 to $21.00 and set a "neutral" rating for the company in a research note on Wednesday, March 18th. Jefferies Financial Group restated a "buy" rating and set a $22.00 price objective on shares of Macy's in a research note on Wednesday, March 18th. Wall Street Zen downgraded Macy's from a "buy" rating to a "hold" rating in a research note on Sunday, April 26th. UBS Group increased their price target on Macy's from $8.00 to $9.00 and gave the stock a "sell" rating in a research note on Monday, March 9th. Finally, Zacks Research raised Macy's from a "strong sell" rating to a "hold" rating in a research note on Monday, April 13th.

Macy's Price Performance

Shares of M opened at $18.38 on Monday. The company has a market cap of $4.85 billion, a P/E ratio of 7.92 and a beta of 1.47. The stock has a fifty day moving average price of $18.63 and a 200 day moving average price of $20.45. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.49 and a quick ratio of 0.50. Macy's 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 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 firm's revenue was down 1.7% on a year-over-year basis. During the same period in the prior year, the business earned $1.80 EPS. On average, research analysts forecast that Macy's will post 2.09 earnings per share for the current year.

Macy's Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th were paid a $0.1915 dividend. The ex-dividend date of this dividend was Friday, March 13th. This is a positive change from Macy's's previous quarterly dividend of $0.18. This represents a $0.77 annualized dividend and a dividend yield of 4.2%. Macy's's dividend payout ratio (DPR) is currently 33.19%.

Insiders Place Their Bets

In other news, EVP Tracy M. Preston sold 5,271 shares of the stock in a transaction on Monday, April 6th. The stock was 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 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. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Antony Spring sold 50,044 shares of the stock in a transaction on Monday, April 6th. The stock was sold at an average price of $17.92, for a total value of $896,788.48. Following the completion of the transaction, the chief executive officer directly owned 485,791 shares of the company's stock, valued at approximately $8,705,374.72. The trade was a 9.34% decrease in their position. 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 ninety days, insiders sold 94,967 shares of company stock worth $1,705,276. 1.05% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Dimensional Fund Advisors LP grew its stake in shares of Macy's by 2.0% in the first quarter. Dimensional Fund Advisors LP now owns 16,475,647 shares of the company's stock worth $298,035,000 after purchasing an additional 329,675 shares in the last quarter. RWC Asset Management LLP lifted its holdings in shares of Macy's by 0.6% in the fourth quarter. RWC Asset Management LLP now owns 10,965,149 shares of the company's stock valued at $241,782,000 after buying an additional 62,839 shares during the period. American Century Companies Inc. lifted its holdings in shares of Macy's by 6.6% in the third quarter. American Century Companies Inc. now owns 10,764,293 shares of the company's stock valued at $193,004,000 after buying an additional 669,729 shares during the period. Schroder Investment Management Group lifted 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 buying an additional 110,548 shares during the period. Finally, State Street Corp lifted its holdings in shares of Macy's by 0.5% in the second quarter. State Street Corp now owns 9,420,372 shares of the company's stock valued at $111,547,000 after buying an additional 45,997 shares during the period. Institutional investors own 87.36% of the company's stock.

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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