Zacks Research Upgrades Macy's (NYSE:M) to Strong-Buy

Key Points

• Macy's stock has been upgraded by Zacks Research from a "hold" rating to a "strong-buy" rating, indicating improved investor sentiment.
• The company reported earnings of $0.41 per share for the last quarter, significantly surpassing analysts’ expectations of $0.19.
• Multiple analysts have increased their price targets for Macy's shares, with Goldman Sachs setting a new target of $14.50 and Jefferies raising it to $18.50.

Macy's (NYSE:M - Get Free Report) was upgraded by analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report issued on Thursday,Zacks.com reports. Zacks Research also issued estimates for Macy's' Q3 2026 earnings at ($0.16) EPS, Q4 2026 earnings at $1.56 EPS, FY2026 earnings at $1.97 EPS, Q2 2027 earnings at $0.42 EPS, Q3 2027 earnings at ($0.15) EPS, Q4 2027 earnings at $1.57 EPS, FY2027 earnings at $2.01 EPS, Q2 2028 earnings at $0.44 EPS and FY2028 earnings at $2.07 EPS.

A number of other brokerages have also weighed in on M. The Goldman Sachs Group increased their target price on Macy's from $13.00 to $14.50 and gave the stock a "neutral" rating in a research note on Thursday, September 4th. Telsey Advisory Group reissued a "market perform" rating and set a $17.00 target price (up previously from $14.00) on shares of Macy's in a report on Wednesday, September 3rd. Barclays upped their price target on shares of Macy's from $12.00 to $15.00 and gave the company an "equal weight" rating in a research note on Thursday, September 4th. Jefferies Financial Group boosted their price objective on shares of Macy's from $14.50 to $18.50 and gave the company a "buy" rating in a report on Wednesday, September 3rd. Finally, UBS Group boosted their price target on Macy's from $6.00 to $6.50 and gave the company a "sell" rating in a research note on Thursday, September 4th. Two analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Macy's currently has a consensus rating of "Hold" and an average price target of $15.25.

Macy's Stock Performance

Macy's stock traded down $0.09 during mid-day trading on Thursday, hitting $17.52. 10,496,434 shares of the company's stock traded hands, compared to its average volume of 12,104,927. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.38 and a quick ratio of 0.35. The firm has a 50 day simple moving average of $13.94 and a two-hundred day simple moving average of $12.68. Macy's has a fifty-two week low of $9.76 and a fifty-two week high of $18.13. The stock has a market cap of $4.70 billion, a price-to-earnings ratio of 10.01 and a beta of 1.78.

Macy's (NYSE:M - Get Free Report) last announced its earnings results on Wednesday, September 3rd. The company reported $0.41 EPS for the quarter, topping the consensus estimate of $0.19 by $0.22. The business had revenue of $4.81 billion during the quarter, compared to the consensus estimate of $4.69 billion. Macy's had a net margin of 2.18% and a return on equity of 15.39%. Macy's's revenue was down 2.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.53 EPS. Macy's has set its Q3 2025 guidance at -0.200--0.150 EPS. FY 2025 guidance at 1.700-2.050 EPS. On average, research analysts expect that Macy's will post 2.39 EPS for the current fiscal year.

Insider Activity at Macy's

In other Macy's news, SVP Paul Griscom sold 12,843 shares of the firm's stock in a transaction that occurred on Thursday, September 11th. The shares were sold at an average price of $17.26, for a total value of $221,670.18. Following the sale, the senior vice president owned 23,379 shares in the company, valued at $403,521.54. This trade represents a 35.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP Danielle L. Kirgan sold 100,000 shares of the company's stock in a transaction dated Wednesday, September 17th. The stock was sold at an average price of $17.75, for a total value of $1,775,000.00. Following the completion of the transaction, the executive vice president directly owned 136,161 shares of the company's stock, valued at approximately $2,416,857.75. The trade was a 42.34% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 212,843 shares of company stock worth $3,726,670 over the last ninety days. 2.77% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Macy's

Several hedge funds and other institutional investors have recently made changes to their positions in M. Nuveen Asset Management LLC lifted its holdings in Macy's by 13.8% during the fourth quarter. Nuveen Asset Management LLC now owns 721,044 shares of the company's stock worth $12,207,000 after acquiring an additional 87,315 shares during the period. ProShare Advisors LLC lifted its stake in Macy's by 7.7% in the fourth quarter. ProShare Advisors LLC now owns 12,978 shares of the company's stock valued at $220,000 after purchasing an additional 924 shares during the last quarter. Toronto Dominion Bank bought a new position in Macy's during the fourth quarter valued at $704,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in Macy's by 13.1% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,060,349 shares of the company's stock worth $17,952,000 after buying an additional 122,749 shares during the last quarter. Finally, Vise Technologies Inc. raised its stake in shares of Macy's by 37.2% in the fourth quarter. Vise Technologies Inc. now owns 23,129 shares of the company's stock valued at $392,000 after buying an additional 6,266 shares during the period. 87.36% of the stock is owned by institutional investors.

About Macy's

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.