Macy's (NYSE:M) Rating Lowered to Hold at Wall Street Zen

Key Points

• Downgrade: Wall Street Zen cut Macy's from a "buy" to a "hold," and MarketBeat's analyst consensus is a "Reduce" rating with an average price target of $18.90.
• Earnings beat but mixed results: Macy's reported $1.67 EPS versus $1.55 expected and $7.92B revenue versus $7.48B expected, though revenue was down 1.7% year‑over‑year; the stock trades near $20.10 with a $5.3B market cap and a P/E of 8.66.
• Insider selling: Executives (including Olivier Bron and Antony Spring) sold roughly 94,967 shares in the quarter—about $1.7M in total—largely to cover tax withholding on vested awards, leaving insiders with about 1.05% ownership.

Macy's (NYSE:M - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Sunday.

Other equities analysts have also recently issued research reports about the stock. UBS Group lifted their target price on shares of Macy's from $8.00 to $9.00 and gave the stock a "sell" rating in a research report on Monday, March 9th. Zacks Research upgraded shares of Macy's from a "strong sell" rating to a "hold" rating in a research report on Monday, April 13th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $22.00 target price on shares of Macy's in a research note on Wednesday, March 18th. Telsey Advisory Group reaffirmed a "market perform" rating and issued a $20.00 target price on shares of Macy's in a research note on Wednesday, April 1st. 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 research note on Wednesday, March 18th. One equities research analyst has rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and an average price target of $18.90.

Macy's Stock Performance

Shares of M stock opened at $20.10 on Friday. The company has a market cap of $5.30 billion, a P/E ratio of 8.66 and a beta of 1.51. The firm has a 50-day moving average of $19.05 and a 200-day moving average of $20.33. Macy's has a one year low of $10.54 and a one year high of $24.41. 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 (NYSE:M - Get Free Report) last issued its earnings results on Wednesday, March 18th. The company reported $1.67 EPS for the quarter, topping analysts' consensus estimates of $1.55 by $0.12. The company had revenue of $7.92 billion for the quarter, compared to analysts' expectations of $7.48 billion. Macy's had a net margin of 2.84% and a return on equity of 14.22%. The firm's revenue was down 1.7% compared to the same quarter last year. During the same quarter last year, the company earned $1.80 EPS. Equities research analysts forecast that Macy's will post 2.09 EPS for the current fiscal year.

Insider Buying and Selling at Macy's

In other news, CEO Olivier Bron sold 7,228 shares of the business's stock in a transaction on Monday, April 6th. The shares were sold at an average price of $17.92, for a total transaction of $129,525.76. Following the sale, the chief executive officer owned 21,590 shares in the company, valued at approximately $386,892.80. The trade was a 25.08% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 business's stock in a transaction on Monday, April 6th. The shares were sold at an average price of $17.92, for a total transaction of $896,788.48. Following the sale, the chief executive officer owned 485,791 shares in the company, valued at approximately $8,705,374.72. This trade represents a 9.34% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 94,967 shares of company stock worth $1,705,276. Corporate insiders own 1.05% of the company's stock.

Institutional Trading of Macy's

A number of hedge funds have recently modified their holdings of the business. Dimensional Fund Advisors LP boosted its stake in Macy's by 3.2% in the 4th quarter. Dimensional Fund Advisors LP now owns 16,145,972 shares of the company's stock worth $356,020,000 after purchasing an additional 494,280 shares in the last quarter. RWC Asset Management LLP lifted its stake in Macy's by 0.6% during the 4th quarter. RWC Asset Management LLP now owns 10,965,149 shares of the company's stock valued at $241,782,000 after acquiring an additional 62,839 shares during the period. American Century Companies Inc. lifted its stake in Macy's by 6.6% during the 3rd quarter. American Century Companies Inc. now owns 10,764,293 shares of the company's stock valued at $193,004,000 after acquiring an additional 669,729 shares during the period. Schroder Investment Management Group lifted its stake in Macy's by 1.1% during the 3rd quarter. Schroder Investment Management Group now owns 9,738,338 shares of the company's stock valued at $174,608,000 after acquiring an additional 110,548 shares during the period. Finally, State Street Corp increased its position in shares of Macy's by 0.5% during the 2nd quarter. State Street Corp now owns 9,420,372 shares of the company's stock valued at $111,547,000 after purchasing an additional 45,997 shares during the last quarter. Institutional investors own 87.36% of the company's stock.

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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