Stock Traders Purchase Large Volume of Macy's Call Options (NYSE:M)

Key Points

• Options traders turned bullish on Macy’s, buying 23,791 call options on Thursday, about 119% above its normal daily volume. The surge in call buying suggests expectations for further upside.
• The stock rose 7.2% to $23.38 after Macy’s reported stronger-than-expected quarterly results, with EPS of $0.13 versus $0.02 expected and revenue of $4.89 billion versus $4.61 billion forecast. Comparable sales also increased 3% year over year, the best first-quarter growth in four years.
• Macy’s raised its outlook and continued its dividend, lifting FY26 guidance and announcing a quarterly dividend of $0.1915 per share, or a 3.3% annualized yield. Despite the improved performance, analysts remain cautious overall, with the stock carrying an average “Reduce” rating.

Macy's, Inc. (NYSE:M - Get Free Report) saw unusually large options trading on Thursday. Stock investors bought 23,791 call options on the company. This represents an increase of approximately 119% compared to the typical daily volume of 10,841 call options.

Macy's Stock Up 7.2%

Shares of M traded up $1.58 during trading on Thursday, reaching $23.38. The company's stock had a trading volume of 6,374,599 shares, compared to its average volume of 6,863,181. The company has a market cap of $6.17 billion, a price-to-earnings ratio of 10.08 and a beta of 1.48. The company has a quick ratio of 0.50, a current ratio of 1.49 and a debt-to-equity ratio of 0.50. The company has a fifty day moving average of $19.45 and a two-hundred day moving average of $20.53. Macy's has a twelve month low of $10.54 and a twelve month high of $24.41.

Macy's (NYSE:M - Get Free Report) last released its quarterly earnings results on Wednesday, June 3rd. The company reported $0.13 earnings per share for the quarter, topping analysts' consensus estimates of $0.02 by $0.11. The business had revenue of $4.89 billion during the quarter, compared to the consensus estimate of $4.61 billion. Macy's had a net margin of 2.84% and a return on equity of 14.22%. The business's quarterly revenue was up 1.8% compared to the same quarter last year. During the same quarter last year, the company earned $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, sell-side analysts predict that Macy's will post 2.1 EPS for the current fiscal year.

Macy's Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 15th will be given a $0.1915 dividend. The ex-dividend date of this dividend is Monday, June 15th. This represents a $0.77 annualized dividend and a dividend yield of 3.3%. Macy's's payout ratio is presently 33.19%.

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. JPMorgan Chase & Co. lifted their price objective on shares of Macy's from $21.00 to $27.00 and gave the company a "neutral" rating in a research note on Thursday. Weiss Ratings restated a "hold (c)" rating on shares of Macy's in a research note on Friday, March 27th. Evercore set a $22.00 price target on shares of Macy's in a report on Thursday. Wall Street Zen downgraded shares of Macy's from a "buy" rating to a "hold" rating in a research note on Sunday, April 26th. Finally, Citigroup reissued a "neutral" rating on shares of Macy's in a research report on Thursday. 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. Based on data from MarketBeat.com, Macy's currently has an average rating of "Reduce" and an average target price of $19.90.

Macy's News Summary

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

• Positive Sentiment: Macy’s beat Q1 earnings and revenue estimates, with EPS of $0.13 versus $0.02 expected and revenue of $4.89 billion versus $4.61 billion forecast, helping support the stock. Business Wire article
• Positive Sentiment: Comparable sales rose 3% year over year, the company’s best first-quarter comps growth in four years, suggesting improving customer demand and execution. CNBC article
• Positive Sentiment: The company raised its FY26 guidance for sales, comparable sales and adjusted EPS, signaling management sees continued momentum from its “Bold New Chapter” turnaround strategy. WSJ article
• Positive Sentiment: Bloomingdale’s and higher-end merchandise are driving stronger performance, which is encouraging investors that Macy’s premium and luxury initiatives are working. WSJ article
• Positive Sentiment: Heavy call-option buying points to bullish sentiment in the options market, with traders positioning for further upside.
• Neutral Sentiment: Telsey Advisory Group raised its price target to $23 from $20 but kept a “market perform” rating, suggesting the stock may be near fair value. The Fly article
• Neutral Sentiment: Berkshire Hathaway’s newly disclosed stake has added attention to the name, though it appears more like validation of the turnaround than a direct catalyst. Motley Fool article

Insider Buying and Selling

In related news, CEO Olivier Bron sold 7,228 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 transaction of $129,525.76. Following the transaction, the chief executive officer directly owned 21,590 shares of the company's stock, valued at approximately $386,892.80. The trade was a 25.08% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Antony Spring sold 50,044 shares of the company'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 $896,788.48. Following the completion of the transaction, the chief executive officer owned 485,791 shares of the company's stock, valued at approximately $8,705,374.72. This represents a 9.34% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 94,967 shares of company stock worth $1,705,276 over the last three months. 1.05% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Macy's

Hedge funds have recently bought and sold shares of the company. Allianz Asset Management GmbH increased its holdings in shares of Macy's by 2.1% in the 3rd quarter. Allianz Asset Management GmbH now owns 3,223,138 shares of the company's stock valued at $57,791,000 after acquiring an additional 65,395 shares during the last quarter. Schroder Investment Management Group lifted its stake 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 purchasing an additional 110,548 shares during the last quarter. Kingsview Wealth Management LLC bought 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 in the fourth quarter worth $2,752,000. Finally, Wedge Capital Management L L P NC bought a new stake in Macy's during the fourth quarter valued at $30,722,000. 87.36% of the stock is currently owned by institutional investors and hedge funds.

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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