Macy's Target of Unusually High Options Trading (NYSE:M)

Key Points

• Traders bought an unusually large number of calls—35,478 call options on Macy's on Tuesday, about a 142% increase versus typical daily call volume, indicating elevated bullish/options interest.
• Macy's raised its quarterly dividend to $0.1915 (from $0.18), implying a $0.77 annualized payout and a ~4.5% yield with a payout ratio around 45%.
• Analyst sentiment is mixed (average rating "Reduce" and average price target $20.00) while the stock trades near $16.93 with a market cap of ~$4.5B and a 52-week range of $9.76–$24.41.

Macy's, Inc. (NYSE:M - Get Free Report) saw some unusual options trading activity on Tuesday. Traders bought 35,478 call options on the company. This is an increase of approximately 142% compared to the typical volume of 14,652 call options.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Hennessy Advisors Inc. acquired a new stake in shares of Macy's in the 3rd quarter worth $44,362,000. Y Intercept Hong Kong Ltd purchased a new stake in shares of Macy's in the third quarter valued at about $3,307,000. Allianz Asset Management GmbH increased its position in Macy's by 2.1% during the third quarter. Allianz Asset Management GmbH now owns 3,223,138 shares of the company's stock worth $57,791,000 after purchasing an additional 65,395 shares during the last quarter. SummerHaven Investment Management LLC acquired a new position in Macy's in the 3rd quarter valued at about $1,192,000. Finally, Texas Permanent School Fund Corp grew its stake in shares of Macy's by 25.9% in the 2nd quarter. Texas Permanent School Fund Corp now owns 304,192 shares of the company's stock valued at $3,547,000 after buying an additional 62,596 shares during the period. 87.36% of the stock is owned by hedge funds and other institutional investors.

Macy's Price Performance

M stock traded down $0.16 during midday trading on Tuesday, reaching $16.93. The stock had a trading volume of 11,662,164 shares, compared to its average volume of 7,331,092. Macy's has a 52-week low of $9.76 and a 52-week high of $24.41. The company has a current ratio of 1.25, a quick ratio of 0.18 and a debt-to-equity ratio of 0.56. The company's fifty day simple moving average is $20.69 and its 200 day simple moving average is $20.02. The company has a market cap of $4.50 billion, a price-to-earnings ratio of 10.02 and a beta of 1.51.

Macy's Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be given a dividend of $0.1915 per share. The ex-dividend date is Friday, March 13th. This is a boost from Macy's's previous quarterly dividend of $0.18. This represents a $0.77 dividend on an annualized basis and a yield of 4.5%. Macy's's dividend payout ratio (DPR) is presently 44.97%.

Analysts Set New Price Targets

Several equities analysts recently commented on M shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Macy's in a research report on Monday, December 29th. Wall Street Zen raised shares of Macy's from a "buy" rating to a "strong-buy" rating in a report on Sunday. Telsey Advisory Group boosted their price objective on shares of Macy's from $22.00 to $25.00 and gave the company a "market perform" rating in a report on Thursday, December 4th. The Goldman Sachs Group raised their target price on Macy's from $16.50 to $22.00 and gave the stock a "neutral" rating in a research note on Friday, December 5th. Finally, UBS Group boosted their price target on Macy's from $8.00 to $9.00 and gave the company a "sell" rating in a research note on Monday, March 9th. One investment analyst has rated the stock with a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Reduce" and an average price target of $20.00.

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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