Macy's (NYSE:M) Upgraded to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Macy’s from “hold” to “buy,” adding to a generally mixed analyst picture. The broader consensus remains cautious, with MarketBeat showing an average price target of $20.30 and a “Reduce” rating overall.
• Macy’s beat first-quarter expectations, reporting $0.13 EPS versus $0.02 expected and revenue of $4.89 billion versus $4.61 billion forecast. Management also raised full-year guidance, signaling confidence in the turnaround.
• Shares were down 3.7% despite the earnings beat and upbeat outlook, reflecting investor caution. The stock opened at $22.19 and remains below its 52-week high of $24.41.

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

Other research analysts have also issued research reports about the company. TD Cowen cut their price target on Macy's from $21.00 to $20.00 and set a "hold" rating on the stock in a research report on Thursday, March 19th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Macy's in a research report on Friday, March 27th. Jefferies Financial Group reaffirmed a "buy" rating and set a $22.00 price target on shares of Macy's in a research report on Wednesday, March 18th. Telsey Advisory Group boosted their target price on Macy's from $20.00 to $23.00 and gave the company a "market perform" rating in a report on Thursday. Finally, Evercore set a $22.00 target price on Macy's in a report on Thursday. 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's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average price target of $20.30.

Macy's Trading Down 3.7%

M opened at $22.19 on Friday. The firm has a market cap of $5.85 billion, a price-to-earnings ratio of 9.17 and a beta of 1.48. Macy's has a 52 week low of $10.54 and a 52 week high of $24.41. The business's 50 day moving average is $19.62 and its two-hundred day moving average is $20.56. The company has a quick ratio of 0.50, a current ratio of 1.48 and a debt-to-equity ratio of 0.50.

Macy's (NYSE:M - Get Free Report) last released its quarterly earnings results on Wednesday, June 3rd. The company reported $0.13 EPS for the quarter, topping the consensus estimate of $0.02 by $0.11. The company had revenue of $4.89 billion for the quarter, compared to analyst estimates of $4.61 billion. Macy's had a return on equity of 13.68% and a net margin of 2.94%.The firm's revenue was up 1.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.16 earnings per share. 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. On average, research analysts predict that Macy's will post 2.13 EPS for the current year.

Insider Buying and Selling

In other news, EVP Danielle L. Kirgan sold 10,010 shares of the business's stock in a transaction that occurred on Monday, April 6th. The stock was 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. The trade was a 8.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Tracy M. Preston sold 5,271 shares of the business's 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 $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. The trade was a 15.48% 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 ninety days, insiders sold 94,967 shares of company stock worth $1,705,276. 1.05% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Schroder Investment Management Group grew its holdings in Macy's by 1.1% during the third quarter. Schroder Investment Management Group now owns 9,738,338 shares of the company's stock worth $174,608,000 after acquiring an additional 110,548 shares during the period. Kingsview Wealth Management LLC acquired a new position in Macy's during the fourth quarter worth $3,524,000. Artemis Investment Management LLP acquired a new position in Macy's during the fourth quarter worth $2,752,000. Private Advisory Group LLC acquired a new position in Macy's during the fourth quarter worth $1,396,000. Finally, Wedge Capital Management L L P NC acquired a new position in Macy's during the fourth quarter worth $30,722,000. Institutional investors and hedge funds own 87.36% of the company's stock.

Key Stories Impacting Macy's

Here are the key news stories impacting Macy's this week:

• Positive Sentiment: Macy’s reported earnings that topped estimates across the board, with comps rising 3% year over year and management raising its full-year outlook, signaling that the turnaround strategy is working. Why Is Macy's (M) Stock Rocketing Higher Today
• Positive Sentiment: JPMorgan and Telsey both raised their price targets on Macy’s, reflecting improved confidence in the company’s earnings power and recovery trajectory. Price target raised by JPMorgan Chase & Co.
• Positive Sentiment: Traders bought significantly more call options than usual, a sign that some investors are positioning for additional upside after the earnings beat.
• Neutral Sentiment: Macy’s also announced it will participate in the Evercore Consumer and Retail Conference, which keeps the company in front of investors but does not materially change fundamentals. Macy's, Inc. to Participate in 6th Annual Evercore Consumer and Retail Conference
• Neutral Sentiment: Coverage also highlighted Berkshire Hathaway’s new stake in Macy’s and broader interest in the retailer’s improving prospects, adding to the bullish narrative around the stock. Why Macy's Stock Jumped 11% in May
• Negative Sentiment: The removal of Macy’s long-running Herald Square “shopping bag” billboard is a symbolic change, but it is more of a branding/cultural story than a direct financial driver. Macy's 60-year-old ‘shopping bag' billboard in Herald Square to be demolished

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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