Macy's, Inc. (NYSE:M) Receives Consensus Recommendation of "Reduce" from Brokerages

Key Points

• Analysts are cautious on Macy’s: The stock has a consensus rating of "Reduce" from 14 brokerages, with most analysts rating it a hold and the average 12-month price target at $21.70.
• Recent earnings beat expectations: Macy’s reported Q1 results above estimates, posting $0.13 EPS versus $0.02 expected and revenue of $4.89 billion versus $4.61 billion expected.
• Insiders have been selling shares: Senior executives Paul Griscom and Thomas Jr. Edwards recently sold stock, reducing their ownership stakes, while insiders overall hold about 1.05% of the company.

Macy's, Inc. (NYSE:M - Get Free Report) has received an average rating of "Reduce" from the fourteen research firms that are covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell rating, eleven have issued a hold rating and one has assigned a buy rating to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $21.70.

Several analysts have recently commented on the stock. UBS Group reaffirmed a "sell" rating on shares of Macy's in a report on Thursday, June 4th. Evercore set a $22.00 target price on shares of Macy's in a report on Thursday, June 4th. TD Cowen boosted their target price on shares of Macy's from $20.00 to $25.00 and gave the company a "hold" rating in a research report on Monday, June 22nd. Wall Street Zen raised shares of Macy's from a "hold" rating to a "buy" rating in a report on Saturday, June 6th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Macy's in a research report on Friday, March 27th.

Insider Activity

In related news, SVP Paul Griscom sold 10,077 shares of the firm's stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $25.63, for a total transaction of $258,273.51. Following the sale, the senior vice president directly owned 25,373 shares of the company's stock, valued at $650,309.99. This trade represents a 28.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Thomas Jr. Edwards sold 16,419 shares of Macy's stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $24.89, for a total value of $408,668.91. Following the transaction, the executive vice president owned 20,000 shares of the company's stock, valued at approximately $497,800. This represents a 45.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 1.05% of the stock is owned by company insiders.

Hedge Funds Weigh In On Macy's

Several large investors have recently made changes to their positions in M. Strengthening Families & Communities LLC purchased a new stake in Macy's during the fourth quarter worth $28,000. V Square Quantitative Management LLC acquired a new position in shares of Macy's in the fourth quarter worth about $29,000. Smartleaf Asset Management LLC raised its position in shares of Macy's by 51.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,543 shares of the company's stock worth $34,000 after acquiring an additional 526 shares during the period. CIBC Private Wealth Group LLC boosted its stake in shares of Macy's by 35.9% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,838 shares of the company's stock worth $41,000 after acquiring an additional 486 shares in the last quarter. Finally, CoreCap Advisors LLC boosted its stake in shares of Macy's by 7,265.6% during the 4th quarter. CoreCap Advisors LLC now owns 2,357 shares of the company's stock worth $52,000 after acquiring an additional 2,325 shares in the last quarter. 87.36% of the stock is currently owned by institutional investors and hedge funds.

Macy's Stock Performance

Shares of Macy's stock traded up $0.13 on Tuesday, reaching $23.81. 453,222 shares of the stock were exchanged, compared to its average volume of 6,823,704. The business has a 50 day moving average price of $21.86 and a two-hundred day moving average price of $20.88. The firm has a market capitalization of $6.26 billion, a price-to-earnings ratio of 9.84 and a beta of 1.46. Macy's has a twelve month low of $11.77 and a twelve month high of $26.10. The company has a quick ratio of 0.44, a current ratio of 1.48 and a debt-to-equity ratio of 0.50.

Macy's (NYSE:M - Get Free Report) last issued its quarterly earnings results on Wednesday, June 3rd. The company reported $0.13 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.11. Macy's had a net margin of 2.94% and a return on equity of 13.68%. The company had revenue of $4.89 billion for the quarter, compared to the consensus estimate of $4.61 billion. During the same quarter in the prior year, the company earned $0.16 EPS. Macy's's quarterly revenue was up 1.8% on a year-over-year basis. Macy's has set its Q2 2026 guidance at 0.290-0.340 EPS and its FY 2026 guidance at 2.000-2.200 EPS. Analysts anticipate that Macy's will post 2.16 earnings per share for the current fiscal year.

Macy's Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Monday, June 15th were paid a $0.1915 dividend. The ex-dividend date was Monday, June 15th. This represents a $0.77 dividend on an annualized basis and a dividend yield of 3.2%. Macy's's dividend payout ratio is presently 31.82%.

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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