Macy's Sees Unusually Large Options Volume (NYSE:M)

Key Points

• Macy’s saw unusually heavy options activity on Wednesday, with 22,630 call options traded, about 114% above its typical volume.
• Insiders were net sellers: EVP Danielle L. Kirgan and CEO Olivier Bron both sold shares, and insiders have sold 94,967 shares worth about $1.7 million over the last 90 days.
• Analysts remain cautious on Macy’s, with a consensus rating of “Reduce” and an average price target of $18.90, even after the company posted stronger-than-expected quarterly EPS and revenue.

Macy's, Inc. (NYSE:M - Get Free Report) was the recipient of unusually large options trading on Wednesday. Stock traders purchased 22,630 call options on the company. This represents an increase of approximately 114% compared to the typical volume of 10,595 call options.

Insider Transactions at Macy's

In other Macy's news, EVP Danielle L. Kirgan sold 10,010 shares of the stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $17.92, for a total transaction of $179,379.20. Following the completion of the transaction, the executive vice president owned 108,008 shares in the company, valued at approximately $1,935,503.36. This represents a 8.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Olivier Bron sold 7,228 shares of the stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $17.92, for a total value of $129,525.76. Following the transaction, the chief executive officer owned 21,590 shares of the company's stock, valued at approximately $386,892.80. This trade represents a 25.08% 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. Insiders have sold a total of 94,967 shares of company stock worth $1,705,276 in the last 90 days. Company insiders own 1.05% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in M. Bank of America Corp DE increased its stake in Macy's by 23.4% in the first quarter. Bank of America Corp DE now owns 978,206 shares of the company's stock valued at $17,696,000 after acquiring an additional 185,678 shares during the last quarter. Kentucky Retirement Systems bought a new position in Macy's in the first quarter valued at approximately $550,000. Amundi increased its stake in Macy's by 375.7% in the first quarter. Amundi now owns 230,041 shares of the company's stock valued at $4,161,000 after acquiring an additional 181,684 shares during the last quarter. California State Teachers Retirement System increased its stake in Macy's by 18.1% in the first quarter. California State Teachers Retirement System now owns 302,035 shares of the company's stock valued at $5,464,000 after acquiring an additional 46,343 shares during the last quarter. Finally, Readystate Asset Management LP increased its stake in Macy's by 53.5% in the first quarter. Readystate Asset Management LP now owns 187,715 shares of the company's stock valued at $3,396,000 after acquiring an additional 65,431 shares during the last quarter. 87.36% of the stock is owned by institutional investors.

Macy's Stock Performance

Macy's stock traded up $0.54 during trading hours on Wednesday, hitting $19.59. The company had a trading volume of 2,295,287 shares, compared to its average volume of 6,752,451. The firm has a market cap of $5.17 billion, a PE ratio of 8.46 and a beta of 1.47. 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 has a one year low of $10.54 and a one year high of $24.41. The firm has a 50-day moving average of $18.63 and a 200 day moving average of $20.44.

Macy's (NYSE:M - Get Free Report) last announced its earnings results on Wednesday, March 18th. The company reported $1.67 EPS for the quarter, topping the consensus estimate of $1.55 by $0.12. Macy's had a net margin of 2.84% and a return on equity of 14.22%. The company had revenue of $7.92 billion for the quarter, compared to analysts' expectations of $7.48 billion. During the same period last year, the firm earned $1.80 earnings per share. The business's revenue for the quarter was down 1.7% on a year-over-year basis. On average, sell-side analysts expect that Macy's will post 2.09 earnings per share for the current year.

Macy's Announces Dividend

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 issued a dividend of $0.1915 per share. The ex-dividend date of this dividend is Monday, June 15th. This represents a $0.77 annualized dividend and a dividend yield of 3.9%. Macy's's dividend payout ratio (DPR) is currently 32.76%.

Wall Street Analyst Weigh In

M has been the subject of a number of recent research reports. Wall Street Zen downgraded shares of Macy's from a "buy" rating to a "hold" rating in a research note on Sunday, April 26th. JPMorgan Chase & Co. cut their target price on shares of Macy's from $24.00 to $21.00 and set a "neutral" rating for the company in a research note on Wednesday, March 18th. UBS Group raised their target price on shares of Macy's from $8.00 to $9.00 and gave the company a "sell" rating in a research note on Monday, March 9th. TD Cowen cut their target price on shares of Macy's from $21.00 to $20.00 and set a "hold" rating for the company in a research note on Thursday, March 19th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Macy's in a research note on Friday, March 27th. One investment analyst has rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average price target of $18.90.

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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