Macy's (NYSE:M) Announces Quarterly Earnings Results

Key Points

• Macy’s beat expectations in its quarterly results, reporting EPS of $0.13 versus the $0.02 consensus estimate. Revenue also came in above forecasts at $4.89 billion compared with the expected $4.61 billion.
• The company’s latest dividend will pay $0.1915 per share on July 1, giving Macy’s an annualized dividend of $0.77 and a yield of 3.5%. Its payout ratio is 33.19%.
• Analyst sentiment remains cautious: the stock has a consensus rating of "Reduce" with a consensus price target of $18.90, while recent reports from firms like JPMorgan and Wall Street Zen included neutral-to-hold views.

Macy's (NYSE:M - Get Free Report) issued its quarterly earnings data on Wednesday. The company reported $0.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.11, FiscalAI reports. Macy's had a net margin of 2.84% and a return on equity of 14.22%. The company had revenue of $4.89 billion during the quarter, compared to the consensus estimate of $4.61 billion.

Macy's Stock Performance

Macy's stock opened at $21.70 on Wednesday. The stock has a market cap of $5.72 billion, a P/E ratio of 9.35 and a beta of 1.48. 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 stock has a 50 day moving average of $19.30 and a 200-day moving average of $20.51. Macy's has a 52 week low of $10.54 and a 52 week high of $24.41.

Macy's Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 15th will be paid a dividend of $0.1915 per share. This represents a $0.77 annualized dividend and a dividend yield of 3.5%. The ex-dividend date is Monday, June 15th. Macy's's dividend payout ratio is 33.19%.

Analyst Upgrades and Downgrades

M has been the subject of several recent research reports. JPMorgan Chase & Co. lowered their price objective on shares of Macy's from $24.00 to $21.00 and set a "neutral" rating for the company in a research report on Wednesday, March 18th. Zacks Research raised shares of Macy's from a "strong sell" rating to a "hold" rating in a research report on Monday, April 13th. Telsey Advisory Group reaffirmed a "market perform" rating and issued a $20.00 price objective on shares of Macy's in a research report on Wednesday, April 1st. Wall Street Zen downgraded shares of Macy's from a "buy" rating to a "hold" rating in a research report on Sunday, April 26th. Finally, Jefferies Financial Group reaffirmed a "buy" rating and issued a $22.00 price objective on shares of Macy's in a research report on Wednesday, March 18th. One analyst has rated the stock with a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus target price of $18.90.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Macy's

Large investors have recently added to or reduced their stakes in the company. Smartleaf Asset Management LLC lifted its stake in Macy's by 51.7% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,543 shares of the company's stock worth $34,000 after purchasing an additional 526 shares during the last quarter. CIBC Private Wealth Group LLC lifted its stake in Macy's by 35.9% during the fourth quarter. CIBC Private Wealth Group LLC now owns 1,838 shares of the company's stock worth $41,000 after purchasing an additional 486 shares during the last quarter. Aster Capital Management DIFC Ltd bought a new position in Macy's during the fourth quarter worth $54,000. Northwestern Mutual Wealth Management Co. lifted its stake in Macy's by 31.8% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,528 shares of the company's stock worth $78,000 after purchasing an additional 851 shares during the last quarter. Finally, Vestcor Inc bought a new position in Macy's during the third quarter worth $118,000. 87.36% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.