Macy's (NYSE:M) Shares Gap Up Following Strong Earnings

Shares of Macy's, Inc. (NYSE:M - Get Free Report) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $12.04, but opened at $12.50. Macy's shares last traded at $12.04, with a volume of 4,191,156 shares.

The company reported $0.16 EPS for the quarter, beating analysts' consensus estimates of $0.15 by $0.01. Macy's had a return on equity of 21.99% and a net margin of 0.73%. The firm had revenue of $4.60 billion for the quarter, compared to analyst estimates of $4.38 billion. During the same period last year, the firm posted $0.27 earnings per share. The business's revenue for the quarter was down 5.1% on a year-over-year basis.

Macy's Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 1st. Investors of record on Friday, June 13th will be paid a $0.1824 dividend. This represents a $0.73 dividend on an annualized basis and a dividend yield of 6.13%. The ex-dividend date is Friday, June 13th. Macy's's dividend payout ratio is currently 35.44%.

Analyst Upgrades and Downgrades

M has been the topic of several recent analyst reports. Barclays initiated coverage on Macy's in a research note on Monday, April 28th. They issued a "cautious" rating and a $12.00 price target on the stock. Morgan Stanley reissued a "negative" rating on shares of Macy's in a research note on Tuesday, May 6th. Benchmark raised Macy's to a "strong-buy" rating in a research note on Monday, February 3rd. Wall Street Zen upgraded Macy's from a "hold" rating to a "buy" rating in a research note on Friday, February 14th. Finally, UBS Group reduced their price objective on Macy's from $9.00 to $8.00 and set a "sell" rating for the company in a research note on Friday, March 7th. Two research analysts have rated the stock with a sell rating, ten have given a hold rating, one has issued a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $13.20.

Insider Activity

In related news, EVP Adrian V. Mitchell sold 3,489 shares of the stock in a transaction dated Tuesday, March 25th. The stock was sold at an average price of $13.74, for a total transaction of $47,938.86. Following the sale, the executive vice president now owns 116,165 shares of the company's stock, valued at approximately $1,596,107.10. This represents a 2.92% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Tracy M. Preston sold 2,780 shares of the stock in a transaction dated Monday, March 31st. The stock was sold at an average price of $12.68, for a total value of $35,250.40. Following the sale, the executive vice president now directly owns 4,723 shares in the company, valued at $59,887.64. This trade represents a 37.05% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 41,751 shares of company stock valued at $537,790 in the last 90 days. Insiders own 2.77% of the company's stock.

Institutional Trading of Macy's

A number of institutional investors have recently added to or reduced their stakes in M. Trifecta Capital Advisors LLC purchased a new stake in shares of Macy's in the 4th quarter valued at about $34,000. Jones Financial Companies Lllp increased its position in shares of Macy's by 82.1% during the 4th quarter. Jones Financial Companies Lllp now owns 2,149 shares of the company's stock valued at $36,000 after purchasing an additional 969 shares during the last quarter. Summit Securities Group LLC increased its position in shares of Macy's by 106.0% during the 1st quarter. Summit Securities Group LLC now owns 2,200 shares of the company's stock valued at $28,000 after purchasing an additional 38,800 shares during the last quarter. Kestra Investment Management LLC bought a new position in shares of Macy's during the 4th quarter valued at about $38,000. Finally, Headlands Technologies LLC bought a new position in shares of Macy's during the 1st quarter valued at about $29,000. Hedge funds and other institutional investors own 87.36% of the company's stock.

Macy's Price Performance

The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.17 and a current ratio of 1.26. The stock has a market capitalization of $3.31 billion, a P/E ratio of 20.16 and a beta of 1.77. The firm has a 50-day moving average price of $11.73 and a 200 day moving average price of $14.06.

Macy's Company Profile

Macy's, Inc engages in the retail of apparel, accessories, cosmetics, home furnishings, and other consumer goods. The firm's brands include Macy's, Bloomingdale's, and Bluemercury. It offers men's, women's, and children's apparel, women's accessories, intimate apparel, shoes, cosmetics, fragrances, as well as home and miscellaneous products.